The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-10-20
CAN'T HALT SLUMP
Secr'y Houston Warns Farmers
Against Holding Grain.
Urges Against Refunding Gov
ernment War Bonds.
TO BOOST FOREIGN TRADE
Bankers of Nation to Organize
s10O,OOO,OOO Fund.
Problems of Loans Complicated
by Carriers of Cash.

Washington, Oct. 2O.-Approva1. of a
proposal to organize a 100000, 000
corporation to finance the nations
foreign trade was given today by the
American bankers association in COM
vention here.
President Hawes was authorized to
call a meeting of bankers and business
men to work out plans for the forma-
ton of such a corporation under the
provisions of the recently enacted
Edge law as proposed in the report of
the association committee on COM
merce and merchant marine, which
was Afesented today.
Cannot Halt Slump.
Five of the county's most important
financial problems were discussed by
Secretary of the Treasury Houston be-
tore the convention. of the American
BANKERS association here today. He
outlined the problems and recon-
mended ways for their solution.
Houston first took up the farmers
plea for financial aid in marketing
their crops. He asked the bankers to
nelp the farmers all they could. He
warned the farmers that world wild e
price recession is on and that the gov
ernment could not halt 1t if it wished
Must Not Refund Bonds.
Discussing liberty bonds, the secre-
tary declared against all steps of re-
funding the bonds in securities bear
ing higher interest. The bonds, he
said. would soon return to par with
out such measures.
tsThe public debt, Houston said, has
been reduced more than So, 500, 900, 900
and the floating debt $1,000, ,00O, 900
since August, 1919.
The allies debt to the United States
y F@[
said adding negotiations toward turn
ing of demand obligations now held
by this government into long time
obligations are procee ding Federal
taxes should be revised, the secretary
said, but warned the total they are
to bring in cannot be greatly cut.
People Garry Too Much Cash.
The people of the United States are
carrying around in their pockets or
llaiding at home $4,000. 600, 900 of
american currency. or nearly one-half
the total supply. said Fred w. Ellis
worth, vice president of the Hibernia
Bank & Trust company of New Or
leans. ~
This means that for every family
in the country there is an average of
100, a large. portion of which sshould
be IN the banks where 1t could ac-
romplish for the business community
infinitely more than it can resting in
dismantled sugar bowls or In trouser
pockets" Mr.. Eilworth continued.
Have $4,000, 100000 in Pockets.
"As a matter of fact. right now
$4,000, ,00o,0 900 of American currency
as a basis for credit, would enable
the banks to take care of a very large
proportion of necessary business which
is suffering for the lack of adequate
financing" The savings bank section
of the American Bankers association
is working on a comprehensive plan
for advertising thrift as it never has
been advertised before, said Mr.. Ellis
worth.
The trust company section has ar
ranged nationwide advertising cam
paign for which 100000 has been ap-
propriated for the first year. Banks
are advertising collectively in various
cities and in New Orleans are con-
ducting continuous advertising cam
p4ign in daily newspapers. Mr.. Ellis
worth asked for an adequate applica-
ton for the public relations committee
of the association for intelligent, con-
tinuous educational publicity.