Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-05-01
BUSINESS ASSA|LS
WASTE SATURNAL|A
Warburg Sounds Warning That
World Must Tighten
Its Belt"
"CUT EXPENSES TO QUICK"
Congress Denounced for, Piling
Up Pensions and Bonuses on
Overburdened People.
i"CUT EXPENSES TO QUICK"
Ipy Associa.ed r-css.1

NEW YORK. April 30.--Bankers,
| educators and economists OF the
United States and Europe discussed
the facts and causes Of imitation and
high prices and their remedies at the
scmiannual meeting of the Academy
of Political Science. which opened
here today.
The entire world must tighten its
belt If there is To be enough for all.
and that belt is Il strict control of
bank credit without which the world
will continue TO gorge itself and in
fate. declared Paul NJ. Warburg.
banker discussing imitation. it's
causes and remedies.
Must Eight Initiation.
Summing mp what he termed the
practitioners advice in the case. he
said:
First. we must fight imitation with
all the means at our disposal: by arr
resting the further Increase of gov
ernmcnt indebtedness and if poss:ble
reducing it. and by calling halt
in further bank credit and note issue
expansion. We would thereby destroy
the atmosphere of easy money and
paper prosperity that makes for in
dividual and corporate cxtravaEancc
and fosters discomfort among tho
masses, rendering them disinclined to
give their full measure of work. This
Includes the most difficult task OF
curling the production OF unesscn-
tials and OF stimulating tho produc-
tion OF essentials.
And, finally, we must fight rising
prfcss by stimulating ess}ntinI pros
dueiioh. both here and abfoad. which
means that we must furnish Aurons
With the materials requirSd I'm Sortler
TO rehabilitate her industries 40 that
once more she may become self-sup-
porting. AS far as this involves the
granting of further credits it should
be our determined purpose to provide
them from our savings. " we arc in
capable or too irresponsible TO NC
complisl this. We must submit 10
paying for the unsaved balance nv
imitation. That would prove. as we
nave seen, wasteful ana highly re-
srettablc alternative. bur IL is easier
Tor us TO bear tho sacrifice than Tor
Europe"
High Prices Due TO Shortage of Goods.
DR.. b. NJ. Anderson, Jr, OF the
National Eank of Commerce. do
ciared the shortage OF goods and tho
attendant speculation is the primo
cause OF present high prices in this
country.
When our enormous export bal
ance disappears and when our do
mestic markets are called upon to
absorb three or four hundred million
dollars worth OF goods per month
which they have not been absorbing
W., we. shall see lower prices" lie de-
The speaker said that Increased
production had been expected when
nc o.oooooo men Withdrawn from
industry. for the army and navy re-
turned; but that it had not come. az
IN 1919 we produced less by 10 per
cent than in 1917.
Failure OF The government 10 deal
IN constructive way with any one
OF the vital national problems was
attributed largely to the fact that
the government Is divided against
Itself by Assistant Secretary, Of the
Treasury Leffngwell
II is at least questionable" Mr..
Lefhngwell continued. whether the
progress OF reaction would have been
m nj II,