Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-01-23
CLAIM BANKERS
CAN HELP CUT
COST OF LIVING
Should Establish Standard In
terest Rate for United
States, Say Officials.
SPECTATORS ARE HIT

WASHINGTON. Jan. 23.-Big bankers
meeting today in Chicago are face to
face with an opportunity to help the
country free itself of the high cost
of living problem, government oh1cials
said here today.
By establishing an interest rate on
deposits which shall be uniform through
out the country and remain unchanged
save in grave emergency, the bankers can
act effectively to stop wild cat specula-
tions and extravaganza, o;cials said.
This, it is pointed out, will divert money
to legitimate and normal industrial en-
terprise and stimulate production; bring
ing lower prices for all commodtties.
The result should be felt within thirty
days officials declared.
SPECTATORS FEEL
GOVERNMENT BLOW.
Spectators today are beginning to ex-
perience the effects of a blow dealt
them by the government, yesterday
through the federal reserve board. When
federal reserve banks opened this morn
ing in New York, Boston and Philadel'
phia, the nations money centers, very
high re discount rates were quoted to
other banks seeking loans. The re-dis-
count rates were marked up In an or
der issued by the federal reserve board
here late yesterday. Thy represent a
general advance of nearly so per cent over
the rates in effect six months ago.
These new high rates are intended to
discourage extensive borrowings from
federal reserve banks, board officials said
II they fail to produce this effect soon
the rates will be marked up again, It
was promised.
END OF ARTIFICIAL
/ STIMULATION OF TRADE.
The high rates virtually mark the end
of artificial stimulation of the hnan-
cial markets by the government as a
| part Of its war policy, according to Of
fciaIs. This stimulation was blamed for
high prices.
Unless bankers act today in Chicago
the effect of the governments step IN
marking up discount rates will be multi
fed. according to officials here. Bankers
can get money from sources other than
federal reserve banks by marking up
their own interest rates.
The government must not be expected
to establish further credits to European
nations in financial distress, and the vast
sums that are demanded for European
reha Utilization must come through credits
arranged through the medium of pri-
vate capital and enterprise, Gov. w. =.
G. Harding of the United States Federal
Reserve board, today declared In an ad-
dress before the delegates to the second
Pan American Financial conference.
NATION MUST
BE ECONOMICAL.
Gov Harding laid 1t down as policy
which the nation must adhere to rig
idly that governmental economy, thrift
and conservation must be the watchword
and declared to be absolutely impera-
tive that in future foreign credits must
be restricted to essential purposes.
The secretary of the treasury has
asked congress for money to advance
about S15O,OOOOOO for purely humanI-
tartan reasons in order to prevent actual
starvation in certain localities Gov.
Harding said But with this exception
there appears to be no probability that
further credits will be established by
the government of the United States.
ct f. evident, therefore that we must
depend upon private enterprise and cap
ital to provide the credits which will
he needed for the rehabilitation Of
Europe and for the maintenance Of our
export trade"
Gov Harding drew a vivid contrast.
in comparing conditions FIVE years ago
with the United States standing as a
debtor on the worlds balance sheet to
the extent OF $1,000, 600 600 and the situa-
ton as 1t is presented today with Uncle
Sam standing claimant to $4,000, OOOO0O
from other nations.
Our total national debt as represented
By outstanding obligations Of the gov
ernment has increased from $1,000 900, 900
in 1914 to approximately twenty i've bill
lion dollars today, he said.