The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-07-28
BANKING OR pAwnBRokING


Increased credit is not the cause or
high prices. Increased credit Is the
result of high prices, and is neces-
sary because prices are high. what
the country needs today is more
credit not less credit If the indus
tries and business of the land eouid
be assured of more and cheaper
credit, production would be encour-
aged. and with an increase or pro-
duction prices would fall. With as
suranee of the proper amount or
credit at reasonable rates, intensive
production would follow and prices
would be cheaper, even without a re-
duction in wages. This production,
however, will never be undertaken by
manufacturer, or even by the farmer,
if he thinks his loans are going to
be called or curtailed and he himself
forced into bankruptcy because of in
ability to carry his enterprises to
completion"
This is the opinion of Edward G.
Stokes, President of the Mechanics
National Bank of Trenton, New Jer-
sey, as published in the Manufac-
turer's Record.
Among other things, in this strong
plea for credits, Mr. Stokes says:
my comment on that is that the
banker doesn't understand his obli-
cations to his fellow-n1an. Unfor-
tunately some bankers forget that
business and industry ought to bor-
row when credit is plentiful. This view
of the credit function, which / fear
is taken by too many bankers, isn't
banking at all. 1t is simply high
class pawnbroking. When a man
needs credit, legitimate credit should
be forthcoming, and it is the duty
of the banker to provide it for him.
In 1907, during the panic of that
year, our little bank alt Trenton
then third the size it is to-
day-borrow 100000, paid per
cent for it and loaned 1t TO our GUS
toners to save them from trouble.
We did not make a man pay dollar
during the entire period of trial. 1t
was an hour when our customers
merchants, manufacturers and bust
ness men-needed help, and the real
banker will see that people get help
when they need it.
with an assurance of the porper
amount of credit at reasonable rates
intensive production would follow,
and prices would be cheaper, even
without a reduction in wages.
Good faith on the part of the gov
eminent demands that every .legiti-
mate government agency should be
employed to keep these bonds at par
and save the patriotic holders from
loss.
"Such rates are tantamount to a
conspiracy against values and pros
perity.
mo man, or set of men, in this
country has any more right to be per-
mitted to engage in financial meth
DDS that cause a loss to the millions
of security holders than he has to
burn down a barn.
More and cheaper credit in this
hour would be a God-send to the
American people.
THE man who wants to build a
home in this hour, and the man who
wants to furnish employment and
pay wages, is entitled to have his
credit if his resources warrant it.
This view of the credit function,
which 1 fear is taken by too many
bankers, is not banking at all. 1t is
simply high-class pawnbroking. When
man needs credit, legitimate credit
should be forthcoming, and it is the
duty of the banker to provide it for
him.
II have no patience with the maud
lin cry that there is not credit
enough in the country to finance it's
progress and development"