Greenwood daily commonwealth. (Greenwood, Miss.) 1919-1926, 1920-01-31
FULLDAY'S WORK
Is DEMANDED TO
Prevent Disaster-NOthing Less Will
Feed And Clothe The World, Says
Governor WellbOrn.

ATLANTA, Ca, Jan. 31-Special-
Bankers of the South are deeply con-
cerned about the extravaganza and
idleness which are sapping the foun-
dations of prosperity, and in their re-
plies to the letter recently sent out by
Governor M. B. Wellborn, of the Fed
eral Reserve Bank, they make it clear
that serious consequences may follow
this condition unless it is soon chang
ed by an early return to industry and
economy.
In a word, they diagnose the condi-
tomas Premier Lloyd George did in a
recent speech to the British Parlia-
ment:
1--WE have under production and ov-
er-consumption; it cannot last"
They say it is a fatal mistake to
reduce the output of labor when the
world needs production worse than ev-
er before, and when extravaganza is
added to this evil disaster will GER
folly.
The initiation of currency and cred
it recognized as dangerous condi-
ton and there is a general demand for
deflation. In this connection many in
sist that bankers should refuse loans
for speculative purposes and lend
freely to productive enterprises.
Some say we are passing through a
period of extravaganza, speculation
and decentralization that follows all
great wars, and as this is the great
est and most destructive war that the
world ever saw, this period will be
more pronounced than ever before
Those who take this view suggest that
time is the only solvent and per-
iod of four years is suggested as
about the time it will take to bring
conditions back to normal.
Several bankers hold that high pri-
ces and wages will increase produc-
ton, but more insist that these fact
ors do not operate under present con-
ditions because labor is not putting ir
full time.
GOVERNOR WELLBORN'S LETTER
In the letter which drew out these
expressions, Governor Wellborn said
with more money and a greater
expansion Of credit than ever before
we have relatively less Of the neces
sites of life The supply of grain
cotton, wool, leather, lumber, cement
steel and their products is unequal te
the demand, and the output of labor
is far below normal. AS result pri
ces go up. The expansion of credit
and currency does not increase the
supply, but does increase the prices.
"This condition is a grave menace
to the country and the only remedy i
the increase of production as to tn
consequences of present conditions.
"The subject is one of such import
ance that it is worth while to con
centrate the thought and effort of tn
country upon it and l am asking yo'
to give me by early mail the best sug
gestion you can make upon increasing
production and saving
In making public the replies to thi
letter Governor Wellborn made thi
statement:
"These are expressions of numbe
leading bankers of the South, able an
representative men of affairs, each o
whom is a leader in his own commun
ity. For that reason l am givin
their expressions to the public as
contribution to the discussion of thi
vital question. It is understood, how
ever. that their statements are nc
given as expressions of the Govern
ment or of the Federal Reserv
Bank"
A TYPICAL REPLY.
Mr.. C. Dunn, President of the Ys
zoo State Bank, Itta Bena, Miss
makes typical reply:
'The root of the trouble is idle
ness and wasteful extravaganza. Crt
dit is so cheap and money so plent
full that host of people are livin
on speculation and borrowing. / hav
never seen as much money wasted.
see no remedy except to curtail credi
"The First National Bank, of thi
place, is trying to build new ban
building. 1t was begun in May of la!
year and is not half completed.
is impossible to get labor. When
few are collected they get so niue
pay that after working few da.
they walk out until they spend
Workmen will leave on the flimsie
excuse or no excuse at all. Commt
carpenters and brick layers are pa
from $50 to $1.25 per hour. II
consequence is they will not work ha
the time. In spite Of these cond
t;1sa.,. more building is contemplate
now than ever before (which max
matters worse. We refuse money .
60 in land speculation but they see
able to get somebody to furnish
No one seems willing to listen VIII
YOU talk retrenchment.
@We could not get cotton pick
even by paying IS much IS > P
hundred, about three times as mu
s nnar t,aid hAfnra and Ia