New-York tribune., 1920-04-02
COnnnerceBOdy
Hits Treasury
Loan Policy
1t Asserts the Placing of
Government Obligations
at Low Interest Rate
Has Pernicious Influence
Urges Widespread Thrift
Attributes Economic Ills
Here Partly TO Misdirect-
ed Production and Waste

imitation and high prices the Chamber
of Commerce of New York at its April
meeting yesterday set forth its pro-
posals for restoring economic health.
1t adopted the report presented by the
committee on finance and currency,
which has been anxiously awaited for
weeks.
After explaining the causes of high
prices the chamber passed the follow
ing resolutions:
THAT the chamber approves and in
dorses the policy already urged upon
all governments concerned to live with
ing the necessity Of increasing their
national debts in order to pay for cur
rent deficiencies.
Greater Production Needed
"That every effort should be made
to assist in stimulating necessary pro-
duction both here and abroad.
THAT our people be constantly urged
to cease their inordinate demands Of
all kinds and return to ways OF econ
omy and thrift. and that savings be
directed primarily 10 assist in increas
ing and rchabilitating essential pro-
duction
THAT bankers and business men
should cooperate in a strong effort TO
combat further expansion OF bank
credits or additional issue Of currency.
"That the chamber indorsc the policy
Of the Treasury to reduce current eX-
penditures to the minimum in order to
meet them by current receipts, but
urges the adoption of policy that will
assure the widest possible distribution
Of Treasury certificates among invcs-
tors rather than the banks, and that
will encourage the reduction of hold
ings by Federal Reserve banks amount
ing to more than 81 400 600, 900 at this
time of paper secured by government
var obligations.
Nanderlip Does Not Sign
The report, which was read by Will
lam Woodward, president Of the Han
over National Bank acting chairman of
the committee. was signed by Mr.. Wood
ward, George B. Cortelyou, Otto T. Ban
nard and Paul NJ. Warburg. Frank A.
Nanderlip, who is on his way to the
Pacific Coast en- route to Japan, is
chairman of the committee, but did not
sign the report. 1t was said at the
chamber that Mr.. Vanderlip did not
sign the report because he left before
the final draft was drawn. Neverthe-
the absence of the chairman's name on
the report to mean that he did not con-
cur, especially since it was known that
the committee had difficulty agreeing.
and fortnight ago had to delay its re-
port instead Of giving it as scheduled.
In enumorating the causes of inf1a-
ton the report cites these:
AN excessive issue of government
obligations and currencies based on
government credit:
An insufficient production and disor-
ganlzed means Of interchange through
out the world;
An unbridlcd demand for goods and
unwillingness on the part of the people
to save,
And the unparalcd increase of bank
credits and buying medium at home
and abroad"
Ditferentiating between the state of
affairs in Europe and America, the
report states: "A reduction of produc
tivity has affected the United States
tar less than European countries. With
US the roots OF our economic ills are
rather to be sought in misdirected pro-
ductlon. in cXtravagant consumption
and in banking and currency imitation.
IL is profoundly to be regretted that
after the armistice there was not a
curing more conscientious and effec-
tive accumulation Of savings on the
part or all classes. Viewing in re-
trospect the. last sixteen months, it
would appear to us in the nature Of q
calamity that instead Of permitting
large amounts of these funds to be
squandered in individual extravagances
and to be poured into speculative ven
lures of little value in the large aims
and needs of the hour, the worlds re-
sources could not have been better hus
banded and directed. The economic loss
TO our own country and to tho world
az large ha3 been incalculahlc.
II here can be 10 doubt that the pol-
ICY of requiring an easy money market
Tor the purpose of placing long term
government bonds, and billions Of
treasury certificates to be renewed
from time TO time, at an artiticiallv low
rate of interest, had a very pernicious
influence with respect to general credit
and currency expansion"
Opposes kaplan Bill
Tho chamber put itself on record as
opposed to the kaplan bill in the New
YORK senate requiring life insurance
corporations to invest during the period
of five years onc-half Of all earned
premiums written on risks in this state
upon the security Of uDimprovcd uncn-
numbered ren property 80 encourage
tho building Of houses.
In thls CONNECTION, Darwin =. Kincs~
ley, chairman of the committee or in
surancc, submitted tho following mem
orandun:
"Thc latest accurate compilation OF
tho mathematical reserves on the bust
ness III tins state Of the eight domestic
ilfo companies and Of their investments
IN state securitios was made at the
close Of 1917, but it can safely be as.
sumcd that the relation between the
reserves and Investments has not ma
tcrially changed since then. At that
tune tho reserves of these eight com
panies aggregated Si38, ,791 900; the in
vcstments in securities Of the state at
that time wcrc $S50, ,o00 600. and Of that
tota! the companies hrid in real estate
mortgages $A95. 5.0oO, 900. or nearly $Co.-
100000 in real estate mortgages a nc
in excess Of The entire mathematical
reserves"
The chamber also dsapprovcd of
government price fixing, disapprovcd
the ALLEGATION of American ships to
German route, opposed a compulsory
health insurance bill pending in
Albany. approved project for Harlem
RlVet improvement and I'm improve
mont of the sewage system
" biting Williams. director Of nor