Norwich bulletin., 1920-05-01

New York, April sO-The entire world mus; tighten it's belt if there is to be s,ourh far ali. That belt is strict con troi of hank credit, without which the world will continue to gorge itself ana s,eate declared Paul M. Warburg. banker. discussing imitation, its causes and remedies. before the Academy or Political Science today.
 In s,rIhning up what he termed the uractitioners advice in the case MT Warhurg said: T, First we must fight imitation with all tbe means at our disposal. by arresting The further increase of government in- aehtednesE. and. if possible, reducing II. Second. by calling a halt in further b4ne credit and note issue expansion We vorlu thereby destroy the atmosphere of ,aSv money and paper prosperity that rnakes for individual and corporate ex- truvarance and fosters discontent among Inc masses rendering them disincllned 10 rtve their full measure of work. This in -hldes the most difficult task of curbing n. production of unessentials and of stimulating the production of essentials. And finally. we must fight rising nricee by stimulating essential production. hoth here and abroad. which means that we must furnish Europe with the ma teriais required in order to rehabilitate her industries. 90 that once more she may become sclf-supnorting. As far as this Involves the granting of further credits. u should he our determined purpose to p., vide them from our savings If we ar, incapable or too irresponsible to &C., -rt. rlish this. we must submit to paying f7r the unsaved balance by imitation. That vculr prove as we have seen. a waste fui and highly regrettable alternative. But t is easier for us to bear the sacri- Gee than for Europe
 Increase of government indebtedness must be arrested. Mir. Warburg said. and national budgets must be balanced by reduction of expenditures and increase of revenues
 The inordinate demand for things must he met by increased production and ,y greater moderation in the extravagant consumption Of goods" he continued.
 Ranking imitation must be combated sy an earnest attempt to re-establish and preserve the healthy check placed upon us ,y a conscientious observance of our gold obligations. which implies a stricter con- roi over bank loans and a greater effort 70 iquldate by savings. excessive com nercial and governmental loans"
 Prediction that Italy will be the first biz continental country in Europe to reach the balance of her budget was rlIUN nN IrOIs h. AIIOicos llalldn con- missioner general for finance to the United states. He said data and facts at prrf ent available fully warrant that ex- DecIation. Since the armistice, he assert sd. ths Italian commercial balance is inn prpN ing E1ost encouragingly. and he read statistics bearing out his contention.
 "FoF the first three months of 1920" b. said. while the imports decreased by 7sf 0c0 00H lire as compared with corre- 4l,a ssports augmented by almost SOC. .O00. 900 h-c This means a rectifcation of the cor imcrcial balance of over Is billion in three months. Should this continue at he same rate it would mean reduction or 5000 000. 900 in the year. Joint stock companies have gradually and constantly Increased in number as well as in capital, reaching at the end of 1919 a total in- vested capital of over twelve billions"
 The government os the United States "s deadiocied against itself. a govern uent of obstruction" Assistant Secretary Leiiingwell of the treasury declared.
 Al this most critical moment in the history of Europe, when our financial and economic stake in Europes affairs is SC great that disaster there could mean only disaster here many of our own people nave turned gamblers and wasters. FoI plain living and high thinking. we have ruhstituted wasting and pickering. We tnjoy high living while we grumble at the hirh cost of living There is only one remedy the nation must get together stop pickering and face the critical sit nation which confronts the world as we should a foreign war"
 Government expenditures must be cu to the quick he said. and i've must ad iure bonuses and realize promptly on al salahle war assets. including ships. ap dying the proceeds 10 the war debt" H. arEued for national budget with teetI a t." and urger prompt revision of pres sn. tax laws.
 Mr. Iefingwen assailed the govern mrnt's administrative policy as penn! wise and pound foolish" reciting hoy congress had struggled to effect econo mieE st the expense of efficient admins trstion while it takes time to add se5, otn.oco to Civil war pensions"
 Instead of telling the people frank. and boldly" he said. That prices are higl because they are wasting. we fix price and prosecute profiteers in order that tn peoaie may tuy more and pay less. In read of telling the young men who wer Emitted to light the war, and who cam eurs better and stronger and more fit t dtht their own battles than they eve were before. 10 go to work and save thei money and look out for themselves a any self-respecting man should we Iiste Snnlacently 10 their organized demand sr bonus. euphemistically called lad usstd compensation
 While saying that the Liberty loa campaigns stand out a sthe most re nnrkahle economic achievement of an ,eople." Mir. Leffingwell feared that tn Food wt;cL had come through then-th raining Of nation to work and save vas about Co he lost He declared to nay people had come to regard a lift iollar bond as a fifty dollar bill"
 Other hankers. educators and econor sts of the United States and Enron iiscnSsed the facts and causes of inhatjo anc high prices and their remedies. D M Anderson. Jr.. of the National Ban f Commerce in New York. speaking q ihs forenoon session. declared the short tge of goods and attendant speculation f oo tho prime cause of present high price To this country.
 when our enormous export balanc iis9nr~ rs snS when our domestic mai sets are called upon to absorb $500 900 poo or s4o0.00o.e00 worth of goods ne month, which they have not been ahsort ne. we shall sec lower pricek," he de shred. W
 The speaker said that increased nrc fuction had been expected when th b.ooo.0oo men withdrawn from ind,str Tor the army and navy returned. but ina t has not come
 ''''- "raduced less In 1919 hv at leas