New-York tribune., 1920-10-23

great measure on their wisdom and
character"
The debate on the floor Of the con-
vcntion as to the wisdom of condemn
making publicly of remarks of the
same tenor as have been said privately
all week in lobbes of the hotels.
After Mr.. Gunan had vanly delv-
cred his plea for inaction Nelson Is.
Eldrcd, an Albany banker, rose tc
speak. 81. too, believe in the American
spirit of fair play" he began. he re-
fcrrcd to the Comptroller as IMAM
in the present Administration w'.o is
distinguished only ty the Office which
he hods"-in an Administration which
he hoped was "in the throes of death"
He promptly explained that II am not
saying this in political sense ! am
Il Democrat myself, out not this year
He later referred to the critics of the
bankers as "ths distinguished and. [
hope, extinguished Comptroller.'
Reserve System Approved
The convention put itself on record
as not being out of accord with Federal
banking officials generally, but simply
with the Comptroller. The latter is by
virtue of office a member Of the Fed
cra Reserve Board, whose policy was
warmly approved in the first resolution
adopted this morning.
eve DESIRE" the resolution read "to
express our approval of the operation
Of the Federal Reserve system through
the periods of imitation and ensuing
great strain to commend the efforts OF
its officers to conserve the credit re
sources of the country and direct them
to the most advantageous use. a
proper restraint upon speculation in
credits and commodities has been etfec-
tive in protecting banking credit and
maintaining sound financial conditions.
We believe that every possible pressure
should be brought to bear by the banks
to liquidatc government obligations
which they are carrying, in order that
there may be a proportionate release
Of credit for commercial purposes. We
are confident that the Federal Reserve
sy tenn has demonstrated its ability to
meet any possible financial pressure.
Neither commercial banks nor Fed
eral Reserve banks can create or manu-
facturc credit. Credit is the product
OF result Of productive enterprise and
operations in trade, commerce, trans
portation and distribution and is limited
and defined by the nature and extent
OF such operations.
Credit for Countrys Welfare
at is the function of banks to vitalize
such credit as is created by productive
processes and by trade and commerce
and make it of use to the community.
The first and highest duty Of bankers
is to put such credit in usable form
and distribute and apportion it for the
u,c and good Of the community. In
diScharging this duty bankers must use
their best judgment and always give
heed to the condition Of the reserve.
"If there is a disposition on the part
of the business world to produce a
greater volume of business than the
condition of the bank reserves per-
mits, there must be a slowing up of
business until the reserve shah he
maintained Necessary adjustments
must be made with precision. 1t is
because of firm belief in these
principles that the American Bankers
Association looks with disapproval on
all suggestions, plans and efforts to
Interfere with the operation of eco
nomic forces It disapproves all sug
gestions, plans and efforts to utilize
the resources OF the Federal Reserve
banks or the government arbitrarily
to hold up or force down prices which
may be failing or rising in response
to the operation of the law of supply
and demand 1t disapproves of all
plans or efforts to use the resources
of the Federal Reserve banks or the
government to exert any influence
whatever through the utilization Of
such reserves except for the prevcn-
tlon Of general disaster or for public
safety"