Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-12-08
SEES PANIC UNLESS
BUYING ORGIE ENDS

TT IS predicted by William A. Day,
president of the Equitable Life
Assurance Society, that unless the
American people check their pres
ent habits of extravaganza and sub
stitute therefor reasonable thrift and
economy, some such catastrophe as
the panic which followed the Civil
War is certain to overtake them.
Mr.. Day issued his warning at tie
annual convention of the Associa-
ton of Life Insurance Presidents at
the Hotel Astor His address was
devoted principally to a discussion
of the significance of the increasing
volume of life insurance, but while
he explained that prosperity as a
result of the war has increased the
amount of life insurance to $7,712,-
000,000 or SO, 100000 more in
1919 than was written in 1918, he
said "the other side of the shield"
showed that general extravaganza is
out of all proportion to the thrift
indicated by the purchase of new
insurance policies.
'It is true" he said, that our
National wealth has increased as
measured in dollars, but this is
largely due to the fact that the evi-
dence of wealth has increased at n
greater rate than the wealth it rep
resents.
"The war thrust upon us an un-
natural and unbalanced prosperity
and left us legacy of imitation,
speculation and improvidence. A
large volume of easy money has
found its way into the National
Treasury and into the pockets of
| fn wi c11h hct n nj in |
cash surplus was a new and tempt
| ing possession. There has followed
J among those of improvident and
self-indulgent tendencies a passion
for expenditure, the pursuit of pleas
ure and the purchase of costly nom
essentials, without parallel in history.
Production Drops Behind
| GAS a result of the labor shortage
and other war conditions, our prod
ucts have been consumed faster
| than we could produce them. Stocks
on hand were reduced or exhausted.
The high prices which inevitably fol-
lowed but served to whet the appe-
tite of the spendthrift. He protests
as vigorously as the provident man
against the high cost of the necessi-
ties of life, hut he eagerly pays high
prices for luxuries and other nom
essentials, and for early service he
is often willing to pay premium
above the market price.
There has, as every one knows,
been an extraordinary increase in
the price of musical instruments, au-
tomobiles, precious stones, furs, silks
and other costly articles of adorn-
ment, and in the cost of travel and
amusement, and of fancy foods candy,
etc. There are so many people with
surplus cash who are buying these
and other expensive luxuries that
the figures of the aggregate sales
since the armistice would-if they
were available-stagger belief.
"The war almost stopped the con-
struction of homes, and prosperity
has caused many people to seek
more expensive quarters. Thus we
find rents reaching eXorbitant fig
ures, but many people who cannot
afford it prefer to pay them rather
than to live in more modest quarters
MANY thousands of good men who
have been hoping for years for a
chance to lay by snug sum each
month now have that chance, but
they have been seized with the spend
ling mania. They have the illusion
that this golden flow will continue
permanently and that they will live
forever to enjoy it.
Spending Craze Spreads
"Our wasteful spending is not
coming alone from current earnings
: MANY who under ordinary circum.
stances would not think of indulg.
ing in extravaganza tre joining ir
this craze to spend.
} why wait for adversely to teacf
us this lesson as we did after oul
! great civil war? A period of infia'
ton. of speculation and of higf
) prices followed that war. The eX
traordinary demand for labor hat
: Increased wages abnormally. !
ifrenzy of extravaganza seized peopi,
: lin all walks of life. Nearly every
one seemed willing to spend and bu