The Washington times., 1920-05-19
BANKERS ASK
LUXURY BAN
Nations Financiers Blame Nom
essentials for Present
Crisis.
SAY FlNERIES KEEP UP H.C.L.
Silks, Perfumes, and Even
Automobiles Classed as
"TroubIemakers."
Nv HOMER JOSEPH DODGE.


The business of the United States
today is suffering from the pangs
and distress of acute indigestion.
The digestive system of the United
States is constituted by its railroad
systems. They are SO seriously
clogged that normal functioning is
suspended and the patient is ex-
tremely uncomfortable.
Money Is Blood of Business.
The body OF business is not dis
similar from the human body. The
necessary goods in everyday use arc
the flesh. and money, or bank credit
is the blood OF the business body
without money to circulate through
the business world. the goods cannot
come to useful employment just as
without blood to circulate through
the human body, the flesh must die.
The Interstate Commerce Commits
sion. specialist in railroad transpor-
tation. and the Federal Reserve
BOARD. specialist in financing or
business. are the eminent physicians
now tending the patient. Their con-
| sultations, their prescriptions, ana
their operations are of the frst I'M
portance to every citizen OF the Unit
ed States, for upon speedy recovery
of the nation from its attack OF indi- :
gestion depends the comfort OF most
Of the people.
There. Is no story in the paper OF
mXSe int~ress oy importance than the
history OF the case and the report or
the manner in which remedies are
being applied. -
Swinging Back To War Basis.
In a final effor. to bring down the
cost OF living and establish Ameri-
can business on solid and safe
foundation, the nation is swinging
back to the war basis OF restricted
use Of money. The peak of an acute
business emergency is just being
passed and the American people are
called upon to exercise the same de-
gree of restraint and the same amount
OF national cooperation which they
displayed during the war in order
that a rapid recovery from the eco
nomic ills may be experienced.
The connection between freight
cars and money may not seem very
close at a glance but a committee OF
the leading bankers OF the country
this morning waited upon the Inter-
state Commerce Commission and the
United States Shipping Board inform
ing those bodies that upon a speedy
and satisfactory untanglement of the
transportation congestion in the
United States depends the uninter-
| rupted flow OF bank credit.
T.. w. Decker. of Minneapolis, a
director of the Federal Reserve Bank
h. ttan
while the other members were W. j.
Bailey. Of Kansas: Charles Z. Rie-
man, of Baltimore; c. II. McNider, of
Iowa; John Perrin, of San Francisco.
and r. l.. Ball, OF San Antonio, Tex.
They told the commission and the
Shipping Board that millions OF dol
lars Of bank loans cannot be repaid
until the railroads are able to break
the freight jam.
1t was explained in this way:
Credit situation SUFFERS.
A clothing manufacturer invests
money in raw material and pays high
wages to produce a thousand gross OF
mems suits. He sells these suits to
jobbers and wholesalers who agree
to pay him for the goods when they
are delivered. The manufactures
ships the suits. Then comes the
switchmens strike. paralyZing traffic
and later the consequent traffic con-
gestion which prevents free move
| ment of trains. The manufactures
has borrowed the money to finance
| the production OF these suits from
| his banker on the security of his
orders. The loan IL entirely good
| but. OF course, cannot be paid until
| the suits are delivered to the jobbcrs
and wholesalers and the manufactures
| CONTINUED on Page 4, Column 81