The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1920-01-09
ST. LOUIS BANKERS
LOOK FOR YEAR OF GREAT
EST PROSPERITY IN 1920

Nearly all of the bankers are agreed
that governmental and individual ex-
travagance must be stopped and that
the people of the United States must
get down to work. Some of them be-
ieve that the present labor controver
sizes which are cutting down produc-
ton, will be satisfactorily adjusted
and that business will hum during the
new year.
1t is the opinion of most of the
bankers that the present high prices
will continue for several months, per-
haps throughout 1920. They are
agreed that there can be no decrease
in the present scale of wages until liv-
ing prices are lowered. If there is an
adjustment of wages, they say, such
adjustment must come in connection
with decreased prices of food and
other supplies. None Of them look
for any rapid or sudden slump in pre-
vailing prices. A sudden slump, they
point out, might result in serious bus
mess depression unless there is COR
responding drop in wages, which they
think would not be likely to occur.
Saving and Thrift Advocated.
All of them advocate saving and
thrift, habits which were inculcated in
thousands during the war. Continued
saving, they say, would be one of the
best things that can happen to the
United States during the readjust-
ment period.
The bankers advocate economy in
purchasing. They advocate the wear
| ing out of the old suit and the repair
of the old shoes before new ones are
purchased. This is one way Of catch
ing up with production, they say. One
wealthy banker said that he is wear
ing now a pair of old shoes that he
dug up since shoe prices began TO
soar. He is wearing them, not be-
cause he cannot afford new ones, but
as a good example to others. An
other said he had quit wearing silk
shirts and expensive neckwear be-
cause he believed at this time that it
is the duty of every citizen to econ
omize.
Richard S. Halves, president of the
American Bankers Association, said
it is paramount that justice and equity
be brought about in the industrial
world; that radicalism be stamped
out and that no class of men be per-
mitted to dominate to the detriment Of
the whole people.
Warns of Undue Expansion.
Every business concern should
guard itself against undue expansion
by keeping an undoubtedly adequate
ratio between its quick assets and cur
rent liabilities.
All demands of questionable pro-
priety should be discouraged or elm
mated.
There is every reason why 1920
should be successful year provided
both individuals and banks use neces-
sary caution. With the Federal Re-
serve System in existence there is no
reason why there should not be am
pie money and credit to take care of
the reasonable demands of legitimate
business.
Says Opportunity Is at Door
John G. Lonsdale, president of the
National Bank of Commerce, declared
that opportunity is loudly knocking
at the door of Uncle Sam. He said
that opportunity has continued to
knock, Notwithstanding that far too
many of his people are occupied with
strikes, debates and spending. |
Lonsdale said that the problems of
living, of labor, of transportation and
of foreign credit and building up of
export business will be solved if every
body gets down to business and works
and saves. The country must produce
and the prevalent idea must be dis
carded, he said, that wealth can be |
created by marking up values.
At the beginning of 1919 opportun-
ity was loudly knocking at Uncle
Sans door. And right on down to
the present moment, opportunity, tar
rying longer than usual, has continued
to knock, while many-entirely too
many-of Uncle Sans people have
been occupied with strikes, debates
and spending.
Thus do we go into 1920. Our most |
troublesome problems arise from the |
following facts: The cost of living is
very high; the strife between capital |
and labor continues; our railroads are
still in the hands of the government,
and when returned to private owner
ship will need vast sums of new equip
ment, and for extensions to meet the |
developing requirements of the nation;
the peace treaty remains unsigner;l
Europe needs our assistance in the
form of goods which can now be paid
for only by the granting of immense
credits; foreign exchanges have fall
EN- to such low figure that in 1920
our exports cannot hold their 1919
pace unless the exchanges are cor
'ected.
Big Problems to be solved.
Big problems these-but they can
DC solved. Virtually every unfavor-
,ble factor in the situation will be
eliminated if we but get down to bus
ness and begin to work and save. We
rave the materials, the productive
utility, the capacity to grant credit to
hose people Of the earth that need it.
We must produce-simply that. We
must lose the idea, recently become SO
widely prevalent, that wealth can he
increased by process of marking up
'alues. The only permanent increase
n the wealth of a nation or COM
nunity comes through production.
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