Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-10-19
SAYS BANK MEN
DENY CREDIT
Continued FROM Page TwO.)

ta1nty as TO the future PRICE OF 1aIh
products.
CAL these things added to the hazard
OF the undertaking, but the farmers did
not hesitate.
"They realized the responsibilities rest
ing on them to make the food products
Of the nation and in spite of difficulties
they succeeded in producing one Of the
largest crops in history"
High prices ruled while farmers were
planting and cultivating the bumper
crops they were asked to produce, Mere
dith recalled.
1.-THE farmers of the United States this
year have produced 3,216,l9200O bushels
of corn" he said.
eat present prices they would receive
for their crop approximately one-half
billion dollars less than it would bring
on the basis Of prices prevailing on Oct.
l, 1919"
1--WE are passing over the bridge into
a broad avenue Of future operations with
more firm foundation, and with con-
servative business atmosphere prevail
ing" stated President Richard S. Hawes
today in the annual report Of the Amer
lean Bankers Association at the annual
convention now in session IN this city.
In dwelling on present conditions OK
business in this country.
Throughout the year, the report states,
changes In our economic structure ard
system Of prices, while marked, have
been less violent and less extreme than
those experienced by other nations. We
are the only country of Importance in
which the gold standard has been sue
cessfuHy maintained. Better than any
Otner country We have retained our pre-
war banking and financial relations, have
conserved the sound elements of our
banking practice. and have kept our
selves prepared for future demands.
Prices continued high until within re-
cent months, when commodities Of all
xmas began TO fall In price, the market
was dull, transportation facilities inter-
rupted, and the daily quotations We're
not the barometer of actual sales. Incl
dental TO the reduction Of demands there
developed surplus Of merchandise in
some commodities, and the cancellation
OF orders in other lines, which caused
the shutting down of factories and In
creasing labor surplus.
The marvellous possibilities Of this
country, the optimism Of It's people, and
their belief in its future DEVELOPMENT
continue to be apparent in sDite of these
readJustment conditions.
ME there is some disposition to com
pain about the reduced unit, or physical
production Of goods, yet there is good
as is commonly supposed, and certainly
aoes not constitute one Of our chief diff
heulttes. Indeed, careful ANALYSIS seems
% show that the per capita production
OF goods has since 1914 somewhat in
creased. 1t reached q high level in 1915.
ana though there has been a decrease
since that date it is yet somewhat above
me 1914 level and shows indications Of
Our real difficulty has been on un-
balanced production. The war demanded
the diversion Of productive forces into
certain restricted channels and we have
not yet been able to re-angn these forces
so that the supply and demand Of goods
are normally uniform. But the produc-
tive capacity Of the United States is mar
yelous. This was amply demonstrated
during the war, and it is safe to predict
that the dire prophesies about the num-
Der Of years required for production TO
catch up with the demand for certain
products viii not be fulfilled, Increased
production is not nearly so much a cause
for concern s Is more economical con-
sumption. The orgy Of foolish, extraya-
CANT and speculative consumption which
has prevailed in the United States and Is
vet too largely evident must cease II we
are to obtain a permanently strong POSI-
ton IN world trade.
a. campaign. to educate the people
against worthless stocks, TO safeguard
and render useful every dollar of capital
available. is a duty charged to the bank
ers Closer relations must be encouraged
with customers, ana frank aQT1ce given
gaiust reckless speculation, but at the
same time the customer should be given
to understand that the banker Is not
averse TO his making proper and SOUND
investment Of his savings. The Liberty
bond holder has been a great field for
the GLIB stock salesman. The people
must be encouraged 30 retain them as
the safest Investment they can make
Millions yearly can be saved TO legitmats
and vitality necessary reconstruction work
through discouragement in the purchase
of so-cnlled wildcat investments. the
menace was never more apparent; the
need for dollars thus squandered never
In agriculture, one Of the Nations
basic industries. lies not only the hope
Of our more rapid recovery from the var
born economic conditions, but much or
our future prosperity depends upon the
scented IN agriculture. The ultimate
wealth Of the world, the basis OF all
credit, originates with the soil, the
mines and the forests:
When we consider that 20 per cent OF
the primary wealth, it is estimated
originates from the soil we can realize
the great Importance of encouragem
and development. Our great problem to-
day is the eveT-increasing demand OK the
non-food producing city dweller. It IS
estimated that the 1920 census win show
that only about 40 per cent of the pepu-
l0tion are actually producers Of food
stuff, and 1t has been stated that one-
fifth of the Nations population live In
Thirty three of its principal cities.
Considering that the crops OF this
country VIII reach the large sum OF
twenty-five billion dollars this year and
that agriculture is the basis OF foundR-
ton of the Nation. bankers and bust.
ness men should know that less than
so cents Of every 500 spent BIZ the Gov
eminent last year was expended for thu
development Of agriculture.
The war has left many by-products, bur
none more disturbing to the public mind
than that of industrial unrest. This con-
dillon is the eliminating result CT chang
ing industrial and political conditions
which have been in progress for many
years, and the war has simply accele-
rated these forces and brought some Of
the problems 10 more acute state.
We witness vast and numerous ex-
periments In the world with new indus
trial and social organizations. Many
fear that we In this country are TO have
similar changes in our industrial secietys
But in our country there Is doubtless uns
necessary alarm in this respect. Thig
is yet land Of opportunity, with wide.
distribution of private property. Our
Constitution provides easy and adeQuatB
means for its change, and there is ne
excuse for violence, nor need We fear
the fullest liberty of speech and press.
The enormous increase In the cost OF
living has greatly aggravated the indus-l
trial unrest, but with prospective Del
crease in prices and increase in dispos1
sition on the part of industrial and la-l
Dor leaders to recognize their mutual
obligation and duties, both to each other,
and the public. we may reasonably look
forward without alarm to better adjusts
ment Of the forces of labor and capital.
Labor, by fomenting strikes, encoura g
ing disagreement with employers, Is, in
fact, striking at the heart Of it's own
future progress and impairing the prose-
perlty of the country. Capital should