The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-09-25
nA!!onAA THE WASHINGTON TIMES sEr1EMsEz zs ,e
Friendly Advice to FinanCiers

In ton of the fourteen of the great industries OF the
United States employment falling off, mon arc dropped
every day BY woruen and by al those responsible Tor
the country welfare this be remembered AL possible
must be done to create labor demand for labor In
public work as rapidly the demand mnishes IN private
employment.
First and most important of all is to keep down the
interest rate.
Recently in New York, Mr.. Clarke. president OF tho
American Exchange Bank, gave luncheon to aenerai
Alvarado Mexican Minister Of Finance
In the course of his speech General Avarado said:
..The business men in general in Mexico consider
themselves fortunate if they succeed In obtaining loans
at or per cent per month
That means 60 to u per year This Of course,
means ruin to industry and business and end OF all new
enterprise
Conditions are not bad that in the United States
but they are bad enough Under this Administration the
Federal Reserve Bank is allowed to encourage nsuy and
has not only allowed but advised the charging Of rates
of that forbidden by State laws against usu
It is doubtful if there dozen banks in the whole
State of New York. the great money center Of the United
States that not making loans upon which they could
legally collect the interest for the interest charge o
lates the law of the State, concerning usury.
You may say truly, that the banks, like other prvaIe
institutions have right to make what they can That
statement is limited by the fact that there are laws con-
What is far more important is the fact that high rates
of interest discourage industrial other enterprises
Why should build factory, house, or employ
labor hoping to make eight nine or ten per cent on nus
money with much worry and work, If he can DO NOih-
ING and lend his money at eight nine or ten per cent!
Before lack of employment becomes the rule and the
arrival of after the complications follow, men that
control finance should allow their controlled agents in gov
eminent plan for and provide useful public employment
on big scale They should also encourage private enter
prise by lending money reasonable rates OF They
will make by that in the long run.
What five or six per cent month does to Mexico
eight nine and twelve per cent year will do almost as
thoroughly to the United States.
General Alvarado told of pitful, ragged Indians In
Mexico waiting for somebody to open factory He said
The chick pea growers whose crop this year pent
full the farmers who this year are harvesting more wheat
any previous year. the cotton planters whose pro-
ducon will exceed million bales, and the hemp planters
all are actually being crushed the money lenders middle
and proteers They selling their products at
half price, while the middlemen and prohteers sell at
double prices"
We do not want duplicate those conditions in the
United States Business especially the nanciers that
business by their control Of credits urged to
consider the interests of working people, not the
needs of the business not the desray OF setting
the right example by living strictly to the laws on usury
They asked to consider only THEIR OWN INTEREST
which is the public interest.
Every Of them is intelligent enough to know that
his best only be reflection of the nation
general prosperity.
For q bank to issue twenty million dollars additional
stock and then raise its dividend from ten to sixteen per
cent the old and the stock is Of tempting
But something tempting and that permanent
stability gradual persistent steady growth free from
alarming conditions