New-York tribune., 1919-05-20
Restoration of
Gold Standard
Urged by Banker
Manufacturers in Annual
Meeting Told Foundation
Is Needed for Credit
at Home and Abroad

AS Congress convened yesterday II
extraordinary session, Americas lead
ing manufacturers met at the Waldorf
Astoria to contribute their suggestion:
for industrial progress In the new ers
to open with the establishment Of
peace. The gathering marked the
twenty-fourth annual meeting Of the
National Association of Manufacturers
and the first conference of the body
since the ending of hostilities. Before
the sessions end tomorrow night
recommendations for new Federal eco
nomic legislation will be embodied in
series Of resolutions.
The opening day was devoted to the
presentation of reports on fundamental
aspects Of the condition of production
IN this country. Surveys Of banking
and currency, industrial betterment,
industrial education, trade acceptances
patent laws and bankruptcy were filed
by special subcommittee.
Report Of Bankers Committee
In behalf Of the bankers committee
f. c. Schwedtman, vice-president of the
National City Bank, urged the setting
free Of gold movements and the restor-
alton Of the gold standard.
ut IS not too much to say that In
the whole programme Of readjustment,"
Mr.. Schwedtman' report said, "no ele-
mont IS of greater practical conse-
quence than the restoration Of the
gold standard. Confidence in the credit
structure at nome as well as the res
toration of normal international ex-
change relationships depends upon it.
The maintenance of the full gold
standard requires very definite proce-
dure, both with respect to the money
system at home and with respect to
the relation of the home countrv's
money to that of other countries. I'm
der the gold standard all the different
kinds off money circulating within
country and all credit media employed
in terms of the basic money unit. are
supposed to circulate at par with gold.
Moreover, IN the international ex
change market relations between one
country's money as compared with
another country's money are supposed
to be such as will insure comparative
stability close to the level of what ia
known As the mint parity. In the
United States, as elsewhere, owing to
the eXigencies Of war, free redemption
IN gold, which will alone in the last
analysis absolutely insure. gold value
was tacitly suspended. Furthermore, to
protect the credit structure ct home. to
prevent aid from reaching the enemy.
and to direct the flow of gold to mar
Aets where essential purchases had to
'e made, gold embargoes or restrictions
'n gold movements internationally were
imposed.
Artificial Restrictions Exist
The restoration of the gold stand
ard now requires that we remove the
artificial restrictions that were built
around our money system in the
nlted States. While it is to the inter
sst OF ultimate economy to have the
'ulk of our gold or of our gold certif-
'ates concentrated in the Federal Re-
serve banks as reserves for credit to be
extended to member banks, gold or gold
certificates should be paid out where
'nybody makes specific request
therefor. The effect Of this would be
argely psychological, but the con
idence which underlies our credit
structure is itself q psychological
phenomenon. All restrictions on The
low of gold into the arts should he
lfted. In the international field en-
'argoes on and restrictions and inter
erence with gold movements between
countries should be eliminated as far
IS possible"
Eight-Hour Clause Attacked
The report of the industrial better
aent, health and safety committee. Of
which Morris M. Davidson. is chair
nan, aroused active discussion. The
ommlttee recommended the adoption
1 system of cooperative representa-
ION of employees in industrial estab-
ishments.
Henry M. Leland, formerly Of the
s''4.t"N -"otOl company ana now of
he Liberty Motor Company, in COM
lentlng on the report, warned manu-
acturers against giving organized la
or voice in industrial management
nd characterized as "damnable. un-
crupulous and criminal" the class that
as ruled organized labor for the last
hirty or forty years.
'aptain William P White. L. s. N.
etired, OF the United States Mailing
dbe Company, attacked the eight-hour
lause IN the peace treaty as disastrous
. American Industry and declared that
he short day in the building trades
-as responsible for high rents and
ongestion.
Five hundred delegates were present
t the first days session. The ma
onal association is composed of 4.40O
manufacturing firms throughout the
ountry.
Among the speakers to-day will he
Falkep d. Hines, director general Of
ne railroads; Colonel Arthur Woods.
aniel c. Roper, Commissioner of In
ernal Revenue.