The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-17
DECLARE BANKING
SITUATION SOUND
Financiers Meeting in Morgan
Offices Declare 1t Has No
Sore Spot
EXPECT EASIEE MONEY
Charles III. Sabin Says Present
Condition Not Mysterious
or Unexpected.
EXPECT EASIhE MONEY

That there is not a single sore SPOT
in the banking and financial situation
was the consensus of opinion expressed
yesterday at an informal meeting held
in the offices of j. =. Morgan & Co. fol-
lowing a routine monthly meeting OF
the directors of the Foreign Finance
Corporation. 1t served to bring together
the chief executives Of the largest finan-
cial institutions in Wall Street, and
although the informal character of the
discussion was emphasized there was no
disguise of the fact that the bankers
themselves were reassured as result Of
the conference.
The bankers present at the protracted
exchange of views were the following ::
Thomas W. Lamont. Thomas Cochran
and Dwight W. Morrow, all of J. T..
Morgan & Co.: Albert II. Wiggin chair
man of the Chase National Bank and
president of the New York Clearing
House Association James a. Stillmah
president of the National City Bank (:
Seward Prosser, president of the Bank
crs Trust Company Gates w. McGarrah,
president of the Mechanics and Metals
National Bank Charles II. Sabin. presi-
dent of the Guaranty Trust Company,
and George +. Baker. Jr., vice-president
of the First National Bank.
No formal statement was issued at the
conclusion of the informal meeting. but
one OF the bankers. who acted as spokes-
man for the group, told reporters the
following information: after the con-
clusion of the routine meeting of the
directors of the Foreign Finance Cor
poration the bankers remained for an
informal conference during which views
as to the banking and financial situation
We're exchanged. Each one was asked
whether he knew of any sore spot in
the situation. big or little. The replies
were unanimously no. Their replies did
not mean any cessation of the continual
ton of the processes of commodity liqui-
dation or any check in the orderly pro-
cesses OF deflation. The bankers agreed
that the banking situation Is fundamen-
tally sound. The consensus of opinion
was that money rates were going to work
easier"
Charles II. Sabin, president of the
Guaranty Trust Company, has prepared
for publication in the December issue OF
the Guaranty Net1s statement on cur
rent conditions. He characterized the
present conditions in the commodity and
security markets as neither mysterious
nor unexpected, but declared that it was
inevitable that "the process of readJust-
intnI Suoulu ne painful III many iSopSNtS
and in many instances"
There are some important considera-
tons" Mr.. Sabin said, (which should
be borne in mind in the present situa-
ton by all who seek to analyZe 1t ac-
curately.
in the first place, there is nothing
mysterious or unexpected about the
present condition in either the commod-
ity or security markets. For months II
has been certain, and II has been re-
peatedly so stated by students of the
situation. that there must be hquida-
ton of commodities, securities and labor
before this country could fully recover
from the effects of the war and be re-
stored to anything like a normal busi-
ness basis. 1t was inevitable that the
processes of readjustment should be
painful In many respects and in many
instances. but that they were and are
inevitable was a matter of common
knowledge among all who seek to study
these problems apart from immediate
self-interest The regrettable thing is
that. as commodity and security prices
reached points far above their real value
in the boom period. so they are to-day
ia ling to points far below their real
value. Necessary liquidation is proceed
ing after the manner anticipated. on the
nOle, Dul lllCIS dlS yet 9GHtioA ottPS
to be taken.
Perhaps the most important OF these
Is for retail merchants to realize that
they, too, must meet the inevitable
economic trend and adjust their prices
TO meet the new conditions
This country will harvest this year
one of the largest crops in it's history.
It's transportation congestion has been
relieved and its railroad system is for
the first time in a decade on a sound
financial and operating basis. We have
passed through n national election and
are assured four years of sane admins
tration Of public affairs Our banking
system has withstood the greatest credit
strain in it's history. and is on a sound
and workable basis. The accumulated
surplus of FIVE years OF Splendid prosper
ity IS stored in many ways for our con-
tinued use. The markets of the world
demand our products, and n great mer-
camille marine is prepared TO transport
them. This country has not been over
built or overextended in any of its UNDER
lying activities, and faces no programme
of readjustment along these lines such as
usually precipitates panic conditions We
are in the soundest financial industrial