Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-25

dent the idea had not occurred TO him
In connection with recent conditions.
He answered by saying that the word
"panic' as we have understood IT. In
the past was not applicable TO the con :
tlitions through which the country has
passed and is still passing. The things
which have heretofore produced panics.
he said, have been present to greater
or less degree, and the remedies Of the
past have been supplanted by an en-
tirely new financial pharmacopein, If
one may so express 1t.
Imitation. which has caused panics in
the past. he continued. was present. but
il wasn't the same kind Of imitation
IL you rip an inflated balloon wide open
q different effect is produced, he said
than when you let the gas out grad
ually through the valve.
And, he continued. that's what has
been done and is now being done. we
believe. successfully. We have seen tn,
gas go out in spectacular way through
these 20 per cent and other reductions,
he said, and II has gone out less spec
tacularly but perhaps more effectuall,
through the action Of the banks. but II
has all been done so quietly that the
word panic does not in any way de
scribe what we have gone through.
In the matter of lower wages ant
lower prices for commodities, thi'
banker said he does not look for re.
turn to the low levels existing before
the war. It has always been the cast
after an era of high wages and higf
prices-sf course. they never reached
the heights they have done recently
when we regained our equilibrium We
always found we were invariably on 9
higher level than before the caus,
which brought about the reaction. what
ever it might have been. and there is M
reason to suppose we will find any diff
'ferent experience this time and ever,
reason for concluding that the rise il
both, as compared with pre- war times
will be very marked.
rake any of the big dry goods stores
for instance. he remarked. When the,
sell from their shelves at the reduced
prices the goods now in stock. does an,
one think they can go back to the manu-
facturer and replace these goods a
pre- war prices? Certainly not. Th
MANUFACTURED is paying higher wage
than he did then. he pays more for ma
terlal than he did then and he canno
sell at pre-war figures.
through a panic. as we understan
panics. with people out of work an
soup kitchens working overtime. Ther
is no poverty. the Salvation Army ha
little or nothing to do along these lines
but we have passed through what |
times past might have produced
panic.
| when speaking of financial condition
all over the country. prominent banke
SAID Yesterday that among the bank
ing fraternity the opinion is gener;
that the financial institutions Of I'll
United states are in sound health
condition and there is no cause for an
alarm.
Every precaution. he said Is beir
taken by bankers for the consqryatio
of credit, and while in some instanc,
perhaps these were extended to q dcgr,
not previously expected. it was large
because of the high prices demande
for materials and commodities whic
necessitated merchants and manufat
turers to demand larger credits.
Credit. he said. will always be avail
able for such manufacturers as are try
ing to secure greater production or
busi ness men doing legitimate expo
! VI lIIDVIt DUSlutsS. uS UIl DHnkprS Hl
unanimous in the belief that on
through greater production can come
reduction in prices.
There is. he said. difference of opir
ion on the propriety of the Federal Re-
serve banks marking up rediscour
rates.
Some say it is necessary to curb on
cessivc borrowing. while those oppose
to such step claim it would penali;
legitimate business. while only aimed
commodity spectators. He said he ii
not believe any action would be take
on the matter till the freight conges
tion is relieved and il is determined no
much liquidation in the loan situate
will take place in consequence.