Evening times-Republican., 1920-12-31

la statement to the press issued
by James B. Forgan. Chairman Of
the Board of Directors of the First
National Bank OF Chicago and the
First Trust and Savings Bank.l
Tho year 1919 was still under the
influence OF the boom created by the
great war while the present year
marked a reaction This reaction set
In during the spring and II has not
run its course even now and Is not
likely 70 do go for few more
months to come On the whole. It
was to be expected. but in prosper
Gus times business men rarely regard
the warnings OF those who point out
the weakness OF the existing .situa-
tion. hut act as II there never could
be asehanse for the worse II Is a
well -known fact that With \ rising
uiarkct buying increases and de-
creascs with n falling market. The
result Of all this has been that bust
ness failures. which. as stated last
year. had been few and unimportant
for some years, have increased and
are likely to continue to increase.
Those undertakings which owed
their existence merely to the artih-
cial stimulus OF the war and intrin-
sically lacked those qualities and at
tributes necessary for sound and
conservative progress are now pay
ing the penalty for theis deficiencies.
The failures 90 far have been those
OF the weaker concerns whose alb
sence the business world need not
regret.
The immediate cause OF tho decline
In prices which has brought on the
present sharp business depression
Was undoubtedly due 10 the action
Of the federal reserve banks In In
creasing their discount rates, but II
must always be noted that without
such action we should have had con-
tinued initiation, which unquestton-
ably would have finally brought on
not a business depression such as
We are now facing and which In
many respects resembles the one fol-
lowing 1907. but in all probability
We should have had catastrophe
such as followed the years 1879 and
1888. The danger at present is due
chiefly 70 the international situation.
Europe. 1t is estimated, owes this
country on open book account rough
iy four billions OF dollars, as re-
suit OF which farmers. manufactur-
ers. merchants. and bankers are find
ing II difficult to liuuidate in n man.
f,er such as ought to take place at
the present time. Tho demoraliza-
ton Of the foreign exchange market
which / noted last year is continu-
Ing. and there does nor appear any
Immediate prospect of relief.
An important conference was
held in Chicago on Dec. 10 and II In
ordersto establish corporation with
"a capital of 100000 900 to operate
under the so-called Edge act tand
thus aid in relieving the situation.
While this conference was on the
whole o. successful one. and there
was LETT no doubt that the best opin-
ion OF the financial community be-
lieved that aid should be extended
to the rest of the world in order to
rehatilitate international, trade, still
II is necessary to warn against un-
due optimism. In the first place, no
financial corporation organized in
this country Will be a panacea for
all the evils now afflicting Europe
and some other parts of the world
There can be no complete return to
normal conditions until many OF the
Of the social unrest
now existing disappear. and the
world as a whole learns that the only
final cure for its present ailments
Is work, Furthermore. corporation
with a capital OF 100000, 900 Ia not
to be organized over night. Careful
plans must be drawn up as regards.
many details. and management
which viii inspire confidence must
be found. Otherwise neither banks
nor other business enterprises will
intrust their funds to sucl, COR
poratfons It need hardly be pointed
out that men capable OF directing an
enterprise as huge as the one plan
ned are not easily found. they are
not likely to be idle ut the present
time and among those seeking new
positions
In our own country crops of nearly
all kinds have Dsan unusually large
and good In quality. In fact, the
crops have been so large and the
rest of the world has had such diff
Guilty in paying us for what they re-
OF AGRICULTURAL. products have been
unduly depressed and the farmers
and cattlemen OF the country have
been complaining bitterly and ap-
pealing to the banks for aid and as
sistance. It II to be noted that on
--- v-----