The Washington times., 1920-10-19
LUXURY CHIEF
BANKPROBLEM
Hawes Says Investors Throw
Away Savings for BaubIes
and wild Cat" Schemes.
tcontinued from First Pase,)


man. The people must be encouraged
to retain them as the safest invest
ment they can make.
Millions yearly can be saved TO
legitimate reconstruction work,
through encouragement In the pur-
chase OF so-called wildcat" invest
ments. The menace was never more
apparent: the need for dolalrs thus
squandered never greater"
The rush from the farms to the
cities. depicting the supply OF farm
labor, and serving to raise the cost
Of farm products. was deplored by Mr..
Hawes. He said the demands OF the
nonproducing city-dweller is steadily
Increasing, and that latest figures
show that only 40 per cent OF the pop
ulation are actual producers OF food
stuffs. -
Larger expenditures by the Gov
ernment in the interests of agricul-
rure was urged by Mr.. Hawes.
CITES Low U. 8. EXPENDITURES.
.'Considring that this years crops
in the United States will reach the
sum of $4,000, ,00O. 900. bankers and
business men should know that less
than 80 cents of<every 500 spent
by the Government last year was ex-
pended for the development of agri-
culture"
The attitude of American bankers
toward the present policy of financ-
\ ing was declared by President Hawes
TO be: "More business in Govern.
ment, and less Government in busl-
ness" He urged the refunding OF the
nations floating debt and the various
/ issues of Liberty bonds as a step
: which win produce. greater unity in
Government obligations"
mot only revision Of taxes, but
( more careful expenditure Of money
\ given by taxpayers" is demanded by
lthe association, Hawes stated.
ANY tax system which discourages
I savings, which discounts accumula-
! ton of wealth, is to be deplored. Al.
! present there exists inequality and
! inequity among classes of taxpayers,
! Increased cost OF commodities and
! decrease of available funds for in
dustrial development"
U. 8. SHIPS POTENT FACTOR.
Leading bankers OF the nation rec
ognize in bigger merchant marine
the potent factor in expansion of for
eign trade, Mr.. Hawes said. He said
the first step toward successful es-
adjustment of the American mer-
chant marine is encouragement of
privately owned and operated vessels
Defending the Federal Reserve
Boards policy to debate the cur
rency, President Hawes said de,
cided victory had been won" in that
direction. But he said orderly defia-
ton and gradual reduction of obliga-
tions must be effected with a mini
nitf(n Of hardships to the community.
A. Barton Hepburn, of New York,
,i,arRy attacked all proposals or
chan les in the existing gold stand
ard. In q speech presenting the con-
eusions Of the currency commission,
opointed to consider the plan OF
Prof. Irving Fisher, of Yale, for
"stabilizing the dollar"
Mr.. Hepburn raped the efforts OF
European financiers to create new
"urrency systems divorced from the
old standard, and he called many
r'uch plans Extremely wild and dan
Gerous." He announced, as the view
Of his colleagues, that Prof Fishers
plan, which would substitute the
stabilized dollar" for the dollar of
liked weight and fineness. though In
teresting, is wholly Impractical" Mr.
hepburn said Fishers plan would
involve great danger to the stability
of our financial and monetary sys-
tenn"
~Prof. Fishers plan would lead to
foreign drains upon our gold in any