Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-05-07
HEAD OF TRUST COMPANY SAYS
USE OF COMMON SENSE
IS REQUIRED.
MONEY PLENTIFUL,
CREDITS STRINGENT
M ost Of Industrial and Commercial
Troubles Due to Shortage of Labor
and Not Moncy-Banks Have Suf-
ficient Funds and Their Condition
10 Unimpaired.

Trust company, who has just return
ed from a business trip to Atlantic
coast cities, is not much impressed
with the sensational statements ac-
credited to several flnancil men OF
high standing that the country is on
the verge OF a great panic.
He believes that most Of these
statements are not only misleading
bit positively harmful as spreading
a propaganda that is calculated to
create distrust rather than confidence.
He said this morning:
I'VE are not going to have a panic.
bnt everyone hopes that what he
has to buy will be cheaper. 1t looks
AS tho the refusal of the public to
ply the price will bring prices down.
Meats have come down, at least
cattle and hogs have. and Iowa will
have less money this year than last
ard expenditures must slow up.
People must again save and put away
in the bank part Of their earnings.
1.-THE banks can lend only what the
people deposit in the banks and of
late the demands of borrowers have
greatly exceeded the money deposit
eel.
Labor Not Money Short.
There will be plenty Of money for
real production. It Is labor that is
short when it comes to producing
things.
"It probably will be and ought to
bo more difficult to borrow money for
purchases OF property to carry.
Landowners have been borrowing on
farms at 5h to 8 per cent which, is
cheaper than the great factories.
mines. railroads and industrial plants
cs.n borrow and the difference must
be adjusted by raising rates here to
correspond with rates in tho east.
IF it were not for the large amount
o.. loans on liberty bonds. which
leans ara carried by the banks, there
would be ample funds to carry on
tie usual credit Of the country"
Mr.. Johnson's statement IL In line
with the opinion Of Chicago bankers.
who say the American people need
hive no fear Of panic II they win
simply apply common sense princip-
les to the situation.
One Of the most candid statements
issued is that Of George NJ. Reynolds,
president Of the Continental & Com
m ercial National Bank, chicago. who
|aa q. In part. -,
No causs Tor Alarrs. +
Tho country IL passing thru 1
period OF readjustment as an after
math OF the war. There IL nothing in
! tile present situation that should
give cause for alarm. What Is most
NEEDED Is that the American people
should exercise their usual common
sense and practice the same moder-
alton and cooperation that marked
their war efforts.
rUnder the present federal re-
serve system such an Occurrences a.
a panic 10 well nigh impossible and
there is nothing in the situation that
can Justify such talk in the slightest
degree.
There il q credit stringency, GER
tainly, and what Is needed il that our
big manufacturers and Industries put
or. the, brakes to a mild degree. The
hanks are endeavoring to check i'll
judged business expansion by care
fully scrutinixing their loans. grant
Ing credit for legitimate needs but
refusing 1t for speculative enter
pIises.
Money Plenty, Credit Tisht.
'But too many persons confuse the
tight credit situation with the money
situation. There is no dearth Of money
ard every one who has funds in the
banks should clearly understand that
tie banks now, as in the past, are
perfectly able to meet every claim
OF their depositors. Under the feder-
al reserve system the banks are al
ways able to obtain all the cash they
may need. Therefore talk Of a panic
is not only idle but also malicious.
Commodity prices are high and
should be lower, but think the peak
has about been reached and the
downward, turn is imminent. Credit
IL tight. But these things always
ccme Al the aftermath Of war.