The Bridgeport times and evening farmer., 1920-03-24
FREER CAPITAL
 NEEDED IN US. SAYS VANDERL|P

Speaking at a luncheon of the New York Electrical League at the Hotel McAlpin recently, Frank A. Wander lip, former president of the National City Bank, turned from the needs of the European situation to an analysis of domestic conditions. which he termed very precarious He said that his opinion regarding Europe was un- changed, but that imitation, specula- ton and other developments here had involved the wasting of the credit which might have been devoted to as sisting the European nations over the crisis that, he predicted, would occur between now and the next harvest The time was past when America was in a position to lend it's credit to Eu- rope, he said, constructive thought being called for on the situation here.
 MT. Vanderlip explained that a sound basis for American prosperity would only exist in the presence of an ample supply of capital, an efficient labor supply and recognition of the fundamental economic laws. He said that while on the surface everything might appear to be running smoothly, the supply of banking credit had been seriously depleted, and that funds for
 
 The taxes now enforced, he continued, had dried up the usual source of cap itaI, i e., large incomes, while the more numerous class of investors de- veloped by the Liberty loans was not accessible in one case because the ad
 vance in prices without commensurate increase in compensation had destroy ed the possibility of saving, and in the other because of past and prevalent extrava gance where wages had kept pace with prices. He urged the en- coura cement of a national policy of thrift which would provide for a di- vision of spending between cOnsump- ton and production of goods. Thrift in this sense, he asserted, did not fn- vo1ve miserliness or hoarding, but would increase productivity and raise the general standard of living.
 Respecting labor, which he esti- mated was only 60 per cent. efficient now, MT. Vanderlip, admitting that i workers in this country were led in some instances by demagogues and i adhered to entirely fallacious eco homie principles, losing sight com pleteIy between the relation of the amount of wages and the amount of i work, placed part of the blame for present unrest on the employers. He ] stressed the need of a spiritual re- vivaP' on both sides which would be based on Intelligent selfshness," as it would mean increased production and a larger division for both: That a solution could be brought about he felt confident. noting with. satisfaction
 the broader vision indicated on the
 part of many manufacturers.
 MT. Vanderlip cited as a chief ex-
 ample of failure to recognize eeo-
 homie laws apparent ignorance of the
 effects of imitation. The high cost of living, he said. could be directly trac-
 ed to the imitation of bank credit and
 currency, prof1teering having merely
 accelerated the price advance by talk
 ing advantage of steadily rising
 market values. Whereas there had
 been an increase of 104 per cent. ir
 bank deposits and a 68 per cent. in
 crease in currency during the last si1
 years, he continued! the actual good:
 produced and available for purchase , had increased only per cent. Tht 1 return to normal would be painful He said further that he entertained ! little hope of def1ation being accom- plished but that it was all-importan that imitation be checked. As he con ceived it, this would involve a broade
 economic view on the part of bankers
 industrial leaders, business men, th
 Federal Reserve Board. etc, than nov current In conclusion he touchet
 upon Americas world position, criti l cising the government as Outrage , l ousiy extravagan