The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-02-01
No. 3-COntinued from
Page One.

With more money and a greater
expansion OF credit than ever before
W. have relatively less of the neces-
sitios of life. The supply of grain, cot
ION, vol, leather, lumber. cement, steel
and their products is unequal TO the
demand, and the output of labor is
far below normal. AS a result prices
go up. The expansion of credit and
currency Goes not increase the supply,
sur does further increase the prices.
"This :. ndition is a grave menance
to the country and the only remedy is
the increase Of production ac-
companied by greater saving. Without
them we may well be apprehensive
AS to the consequences of present
conditions.
1.-THE subject is one OF such impor-
lance that 1t is worth while to con-
centrate the thought and effort of
the country upon it and I am asking
YOU to give me by early mail the best
suggestion you can make upon in
creasing production and saving"
IN making public the replies to this
letter Governor Wellborn made this
statement.
These are expressions Of a number
of the leading bankers of the South
able and representative men of af-
fairs each of whom is a leader in his
own community. For that reason am
giving their expressions to the public
as a contribution to the discussion of
this vital question. 1t is understood
however. that their statements are not
given as expressions of the govern
meut or Of the Federal Reserve Bank.
Mr.. Dunn, president of the Yazoo
state bank, Itta Bena, Miss, makes a
typical repN:
The root of the trouble is idleness
and wasteful extravaganza. Credit
is so cheap and money so plentiful
that a host. of people are living on
speculation and borrowing. I have
never seen so much money wasted l
see no remedy except to curtaiI credit.
The first national bank, of this
place, is trying to build new bank
building. 1t was begun in May OF
last year and is not half completed
1t is impossible to get labor. When
a few are collected they get so much
pay that after working a few days
Worllmen will leave on the fIimsiest
excuse or no excuse at all. Common
carpenters and brick layers are PAID
from $50 to $1.25 per hour The
consequence is they Will not work half
the time, In spite of these conditions.
more building is contemplated now
than ever before, which makes mat
ters worse. We refuse money TO go
in land speculation but they seem
able to get somebody to furnish it.
No one seems willing to listen when
you talk retrenchment
we could not get cotton picked
even by paying as much as SO. per
hundred, about three times as much
as ever paid before. and lots of cot
ton has been lost because no piclcers
could be had. Trains are crowded
with people who seem to have no par
ttcular business. Our people are so
crazy over high prices OF cotton thar
they are neglecring to raise feed for
stock and themselves.
1T is going to be hard task to
finance the making Of crop this year.
No one man in twenty who raised a
cotton crop here last year has any
Of it left. We have made more loans
to date this year than we had last
year up to March 1st, and they are
asking for about twice what they did
last year. The land rents have been
raised from Sc. to SIS. per acre to So.
to $50. per acre. Should we have an
overflow or a bad season like we had
in 1914 they would not make the rent
No bank or merchant wants to get be-
hind such rent as that
Il think the reform must begin at
the top. The federal reserve bank must
limit discounts to banks that will only
END to people for legitimate business.
[ believe things will come out alright
in the end though q lot of people are
going to go broke good and strong"
J. E. Bouden, Jr. president, Whitney
central national bank, New Orleans,
La. writes:
Increase production and efficiency
of labor by longer hours and better
work
Expansion or contraction of credit
will only to a very limited extent af
fect prices, because credit bears an
insignificant percentage of cost to pro-
auction. Labor and raw materials are
ultimately the basis of values and the
present tendency to shorten hours is !
economically unsound, more especially
at the present time. Not only has the |
man power of the world been terribly !
reduced by the war, but the destruc- I
tiveness of the war compels great deal
OF reconstruction, so that on the law OF !
supply and demand alone, we are con |
fronted with high prices
No one denies to labor a fair, even !
a liberal compensation for it's services |
but a continuation of the present labor /
policy of shortening the hours of work /
In order to assure employment to a |
greater number, is curtailing produc- /
ton to point where supply and de-
mand is bound to force the higher !,
prices conDIained Of