New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-03-09
Popular Thrift
Needed to Finance
Foreign Commerce
Public Should Take More
Liberty Bonds So Banks
Can Extend Thei,. Credits
Abroad. Says Banker
BY RAYMOND F. Lones
President Of The Merchants Nation
al Bank Of Ne4y YORK;


al Bank Of Neg Yoyk
SNilE twenty millions of people who
have become bondholders in this
country since the start Of the war
have received only the most elemen-
tary lessons in thrift These lessons
were taught BY nationally selected
salesmansllip force OF such large pro
portions that 10 combination Of bond
or thrift organizations could afford to
bear the expense Of their salaries. 1t
was patriotic movement. Thus started
the work must be followed up, and as
patriotism is no longer a motive, the
salesman must be paid.
phase Of thrift which interests
me at the present time IS concerned
with the extension abroad OF Ameri-
ca S financial operations Much of our
success in foreign investment will. |
THINK, depend upon our habits here al
home. That the United States has
I'M measurably strengthened its fnan-
clal position by becoming a great
creditor nation during the war is a
commonplace but important fact. Just
how this affects the great mass of the
people as individuals is, however,
worth further discussion.
Must Buy Foreign Securities
The trade and interest balances in
our favor are enormous. Export
trade, whether for normal or emer-
soncy needs or for reconstruction Of
devastated areas, viii still further in
crease this balance. For some time to
come we shall have to accept foreign
securities in exchange for our prod
ucts instead of receiving actual goods
and services from Europe. We must
nave great resources in order that
TINS process may continue and no
reservoir OF capital, such as savings.
may be neglected.
In order that international balances
be more quickly equalized il VIII be
necessary that the United States make
foreign investments on a larger scale
than heretofore. Where is this CAPT
tai to be obtained?
The government war loans have nut
a tremendous strain on our banks and
bank borrowings and Federal Reserve
notes have reached a high peak. Tie
coming Victory Liberty loan will not
allow banking conditions to ease un
tor some time. With capital thus tied
the only way in which bank borrow
'ngs can be reduced is By the liqui-
datlon which follows more WIDESPREAD
absorption of war securities. While
II Is true that there are 20.00O.O0O IN
Yestors, Yet the loans have been too
much concentrated on the banks, and
the tendency viii be for further con
centration in the near future.
In order. therefore, that the banks
be enabled o provide capital Tor FOREIGN
investments and for absorbing foreign
securities, it VIII be necessary for q
greater proportion Of home government
hnanclng to be borne by the people OF
TINS country. The only way in which
the widest participation in government
financing can be ACCOMPLISHED is
through the DEVELOPMENT and ox.an-
SION OF the Thrift habit among the
whole population. The successful real
lzation OF the strategic advantages OF
TINS country following the war can be
achieved only ii we receive the full aid
OF popular Thrift
There is another phase Of this sub
ject. The essential characteristic of
investment OF the peoples savings is
security, and for this reason savings
funds should be used for financing such
needs as those of national. state and
local governments and similar safe in
vestments. This condition helps TO re
ease moro entcrnrising capital for
foreign investments. 1t is obvious that
this is particularly necessary AZ the
present time.
Selling Regular Saving
These two conditions OF urgency and
security are therefore the outstanding
phases Of the Thrift movement Inter
national financing requires that the
Thrift movement which has received
such momentum during the war be
accelerated and ended and made per
manent. Old methods of encouraging
thrift arc inadequate f0r producing the
necessary accelcration. Modern meth
DDS must be used even to q greater
extent than in floating the war loans
This means the use OF salesmanship--
putting thrift on q business basis. The
obvious practical solution is to make
saving easy by Offering in convenient
form participation IN government Sc
curities
Some such system is necessary TO
quickly and fully utilize the peoples
savings for home investment, that cap
ital may be released at tbs unusual
opportunity for foreign Investment.