Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-18
BANKER DISCUSSES
BUSINESS OUTLOOK

Head of the A. B. A. Com
ments on Important Prob
lens OF Day.
II. S. Halves. president OF the Amer
3can Bankers Association. speaking
before the Colorado Bankers Asso
citation, had this to say:
Labor needs a more thorough
knowledge of the requirements ant
the other hand, the business mai
might advantageously add to his in
formation about working conditions
Upon such = basis of fairness ant
not. a take-a ll-in- sight policy viii
understandings and adjustments Of
lasting merit to both sides be made.
strikes or lockouts only add to az
already serious situation. which Is al
ready requiring the attention Of the bus
1ness world to weather.
rines Neither Good Nor had.
Mr.. Halves seems to have hit on 6
happy definition of the. times as the,
are today. neither good nor bad:
pleasing nor critical" says Mr.
Halves There is undoubtedly low.
err price tendency that has not as yet
reached its level. None can deny thai
we are getting back to a buyers mar
ket after a spell of the most riotous
spending ever known in our history
Industrial activity seems likely 70
lessen under such conditions. although
the demand for goods seems as yet te
exceed supply. Exports have decreas-
ed, leaving more goods s,t on .nS tha sre
is more efficiency in production. AZ
of which has had its share in the
downward trend Of prices.
America owes its present NOT un-
favorable condition under suen s,ress
servo system and the co-operatlon OK
tended by the bankers.
..The demand Of expanded business
since the armistice placed a strain on
american banking resources o;n1ssd sh hefor as
Credit expanded more rapidly than
the gold reserve. The purchasing
mower in form of credit outstripped
the production capacity OF the county,,
prices went skyward and the banking
credit Of the country was innateo oe-
yond a safe point
"An orderly defiation such as Wouio
protect necessary production ana o1s-
tribution was imperative. TINS mas
been and is being accomplisned
\through the reserve system. , ana 'i is
past. Credit conditions cannot I'M
prove rapidly because OF various DIM
cuIties of liquidation. but there seems
to be generally more commence as
to the future credit status
Figures Of the federal reserve 90
not indicate any special reduction IN
imitation, but the benefits lie largely
in the fact that more rapid imitation
was checked. The country is now IN
better position to reduce overexteno.
q
March it was predicted that the ex-
cess reserve of SIT, 000. 600 would be
rapidly depleted. The process OF
credit reduction, however. arrested
this depletion as shown In the present
reserves of about $245,120,000.
1871 Credits May ImpFove.
I'VE are going to have to nurse our
credits for months to come; there is
no prospect OF lower rates and very
little easement of credit in any re-
spect, although the first of 1921 may
sec the turn to a better credit condi-
ton. II we, are not already directed
that way.
and detrimental alarm from the nat
ural courses of expected readjuSt-
n,ent; careful buying on the part OF
wholesaler, retailer and customer. to
reduce the uncertainties of the pres
ont market, and unadulterated hard
work. which win allow the minimum
time for concocted discomfort and
permit Of more dependable production,
are among the outstanding needs.
We pride ourselves on our intelli-
have been the most ravenous patrons
the last I'VE years Of syndicated
thoughts. Doctrines, isms, CAM
paiEns. drives and movements
canned thinking supplied in measured
doses by trained writer's or skilled
HD0S
cesses. have to measure replaced
individual effort at personal deduc-
tfonA 50 much 80 that straight
thinking IL becoming more at q
pss1nn W.. 50 to
through the mail and denotinE their
acquisition by the presence Of a. cell
luioid button ON the lapel of our
coats. that the gray matter devoted
portant national problems functions
after the manner OF disused appa-
ratua. -,
Straight TAinking Necessary.
Let us think straight The coun-
try needs it. I know it's hard to do
the sitting Of facts. especially in this
season OF political buncombe, but the
greater the effusions Of predigested
thoughts. the more alert we should
be- to select with careful Judgment,
and. In this hold no party brief.
~ We think more carefully. a
We spend less for current consump-
ton and 0ve more for Investment
the situation will be affected. Saw
ings must supply new capital In
1914 We had 800. 900 so.called habitual
investors who absorbed about two
billion in securities annually. Today
the ranks Of that 900. o00 Investment
4 army have been depleted by excess
Profits taxes and sur-tax on incomes
SfhiIe the security needs have jumped
from two billion to ten billion. We
: used to look to Europe to buy Ameri.
can securities, but they need heir
Eow. SO that source of capital il
gone. The wealth of the world sc
far as the trade balance is concerned
lies In the western hemisphere. Sucf
condition Of finances should in.
crease. and profitably so. the relation
OF the two Americans. Pan-America1
exchange of trade with us should
reject this condition of wealth,
AS to this traffic in an interna
toinal way. America is going to hav.
TO look up. There isstoo much leth.
argy in the average American bns;
ness mans attitude to foretxn trade
and yet foreign trade stands at fhs
porta!s OF our future Industrial pros.