New-York tribune., 1920-01-22
Nearing Limit of
Credit Resources.
Sisson Asserts
Banker Tells Shoe Manu-
facturers Conservation Is
Imperative: Use of Cheap
erCrades OF Leather Urged

Credit conservation. increased pro
1uc.ioa e essentials and economy and
.h-;t, during 1920 are imperative neces-
s.es. Francis H. Sisson. vice-presi-
der- q The Guaranty Trust Company
e. New orN. yesterday declared be
---s t1e annual convention Of the Ma
.ioral Bool ana Shoe Manufacturers
Association at the Hotei Astor.
II ae-eve. he SAID. "that : IS more
c. less generally understood now, for
the tts- ,.,0o. perhaps. that the rail-
se-G s',4a-lon = critical. but ! doubt if
car financial and credit position is SO
t.ear.y appreciated With continuing
Aish prices. ard The consequent need
.Qs more c-p.t.l with Whlch TO trans
a-r business of every craracter II =
net surprising that business meu
should ROW ask If there is going to be
money enough n 1920 to finance
huge trade ~ Erevailing prices. How
many of them. however. realize that we
gre Very near the limit OF our credit
resources and that there must be cuici
~rJ effective conservation OF those re-
sosrees Bu- tnat 5 the situation to-
lsg. a si-uat,ou which must be rem
lalee 81 once. And the business men
e. ,nls country must help remedy it.
&C. -l.e-r own protection, for their own
Demand Unprecedented
IS m unprecedented demand
fo- s.; there IS only limited sup
plr supply must be used wisely
20 new wealth, by promoting
produe ity; II cannot be dissi pated, or
even :. t-y wasted, in speculative, un-
Yrt Vc' ve or economically unnecessary
ventuF The business men Of the
ceur y must bear that N mind in
50 .ng creclt. and they must hence
- eNpect the bankers Of the coun-
Y TO apply tcat standard in granting
,redits. 1t vail be eminently TO the
innate ga = Of the business interests
generally to cooperate fully with the
mixers of the country in Maintaining
that standard But unless they do so
y must bs prepared to face greater
dit expansion. still higher prices,
.li eventuAlls : crisis which may pre-
e.r tate reaction, with its attendant
Il do not mean 70 imply that 1920
IS likely 10 be- q poor business year.
!, should be one Of the best. If We
make it SO by the wise conduct of our
h-s ness atfairs But l do wish to en-
yA-size the imperative need for the
:,
et the lncreased production OF essen
tails, for economy and for thrift.
mere Is no need tor legitimate. essen
i.al business 70 rerrench. On the con
trary. there $ every reason why it
mould expand 10 the extent Of meeting
egoncmic demands But il cannot do
-h-s i unessential enterprises or ac-
tyi-ies are permitted 20 drain the res
esTolr o. credit and capital"
Ar Slsson declared that constructive
ssi1tion regarding the railroads is
necessary TO relieve the present crit
cal situation IN transp porration circles
Dear Shoes Unnecessary
The using OF cheaper grades Of
leather = making lower priced but good
Wearing shoes was urged upon the mar
uIactErers by /. Franklin McElwaine
President OF the organization. Upward
price trends or all classes Of shoes are
not nece5 sary, said Mr. McElwalne, but
concentra ton OF the demand on q few
grades of heather is sending the
Gr-ces OF those grades to unprecedented
heights.
That shoe manufacturers are no-
aVerss 20 the IDEA Of lower prices was
further emphasized when ne said thai
lower Prices would react to the general
sool o. the community and the in
Ill -ry.
QaSting re opinions Of other manu-
ssc-arers NJ McElwa.ne read a state
mem from c. {. Keith, which said
- h the present high prices Of all
kinds of law materials, 20 per cent less
no-rs. scarcity OF labc-. re
dAced production per man and the ex-
ffe cess OF !aocr which think
v'..i be maintained through 1920, there
is certainly no prospect, as far as l can
Sec 1.rer prices cr footwear.
con TIE other hand. | believe the
pea o. hign prices has been reached
are tra- conservative bu-ing is the
onv sale way in when merchant
should ac- under present conditions.
WIN the uauv uncertainties that con
fr1rt US on every s de When YOU re-
member thai probably 80 per cent Of
e. TIC shoes that viii be retailed in
1920 have already been contracted for
= .s almost q guarantee that retail
prices "l be maintained Tor many
ao.trs 20 cone"
Iaa- the public IS partly TO blame
-or t1e J. gn prices OF shoes was the
opi, OF ~ another manufacturer, who
W. clo-rd ~ M McElwaine, az fol
lows: so far prices have had no
e:sec- n clr-aiing orders. Quality and
a-e tne imperative requirements.
10 .oEg - the consumers INSIST upon
rvrcrasir9 ne most expensive shoes III
fhe marke. manufacturers viii be com
re.ied ~ bid against each other for
apu. .es q I'D, calS and other high
grade lea-hers 20 supply the demand
~ retailers"
Commodities