New-York tribune., 1920-05-26
Control Of Capital
From the Brain That Hotched
the NeW Gon1pers Ponacea
To the Editor OF The Tribune.

10 the Editor OF Ihe Tribune.
Sir; In an editorial to-day you speak
disapprovingly of "the proposal OF tss
American labor movement that control
of credit capital be taken from private
financiers and placed in the hands Of
public trust, to be administered upon
principles voluntary ard cooperative in
character
I think The Tribune does not under
stand the proposition as il is understood
by Mr. Gompers ard the American labor
movement, and that when The Tribune
does understand it VIII cease 10 dis
approve.
The whole world is now In throcs Of
mental strain over he problem q
credit. There is nothing more remark
able in the history OF the humaa m.ai
than the broad hiatus tAat yawns where
the science and art Of ccedit administla-
ton ought to be.
BECAUSE we have made no effort IN
the past to understand the nature and
functioning of the inner power that
governs the modern world we are rov
compelled by pressure of physical necss-
sity to make an extraordinary effort %
understand.
1t happens that my own attention was
called to the lack Of scientific know
edge Of the dynamics of business in
manner that presented exceptional o.
portunities for investigating in many
countries the actual operation Of hnan-
cial forces. l have written books on the
subject that tentatively occupy ice
vacant space where books Of primary
significance ought long since TO have
been established in the Libraries OF the
world
l feel bound to champion the propo-
sition that The Tribune challenged yes-
terday, because that proposition en-
bodies the main thesis of my book
am in considerable degree responsive
for the espousal of that thesis by rece'
formal actions taken BY the Amerles'
Society of Mechanical Eng.n srs and NJ
the American Federation OF Labor ]
have no doubt that the American
Bankers Association viii arrive IN aus
time, and the Federal Reserve Board.
What is proposed is that an organlzs-
ton of productive intelligence, opers''
ing on a basis of ordered economic IL
formation, shall direct the main INES
of credit expansion in such manner g.
to put the credit where it VIII do nl's'
good. The proposal is to furnish aiaih-
ative and enterprising guidance for TIE
expansion of credit capital, instead 9.
letting it run loose TO the borders O.
panic and then forcing q violent CON
traction
The difference is the difference BE-
tween prescribing well-proportioneo e..
ercise for the high-pulsing organs ana
faculties Of vascular man and allow
ing his blood pressure ID run to vertigo
and then leeching half his life INTO
basin.
You will hear a great deal more aoo'.
this proposal that so-,e sort Of soc''.
and scientific guidance must be a7p.-sl
to the control Of credit capital. 4A'
fact is. indeed. that the hackneyed 'sss'
of traditional politics will before hes
ton Day descend 20 mere tedum' am
this issue. the question of the right a.
minis.ration of credit capital, VII! t's'
to an accent OF passionate intei'"'
both in Europe and in America.
CHARLES FERGUSON,
Formerly Special Agent Of COM
merce Department in London
Paris, Madrid, etc Lately OF tAs
State Department
New York, May 25, 1920.