Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-01-09
FINANCIAL CRISIS AHEAD,
CLAIMS JOHN NJ. MILLER
President OF Richmond First National
Bank Issues Warning to
business Men.
CREDIT MUST BE DEFLATED
Declares Thrift and Increased Pro.
duction Remedy for Situation.
Says High Cost OF L0aflng Causes
Trouble.
CREDIT MUST BE DETLATEI


Grave financial trouble is in store
for the country Within the next two
years. un,css there is a greatly in
creased production and universal prac-
tice OF thrift, and economy, john NJ
Miller, Jr, president OF the First Ma
iional Eank. told members Of the Rich
mond Credit Mems Association at the
monthly meeting % that body in the
Business Mems Club last night Mr.
Miller spoke on Initiation OF Currency
and Dangers That Arc Ahead OF Us"
1T is the high cost OF loahng in this
country that has caused all OF tho
Ss@nniI that We are now experience
working their full capacity"
Not only is production ut Il low cbb.
he said, but credit Imitation or every
KIND is at the h:Ghest peak.
Country at High Tension.
The entire country, n. said is at
INC same nigh tension that il was back
in 1905 the Year preceding the panic
of loo' Mr. Miller does not believe
;hat the United States viii cxDericnc.,
another currency panic. as il did in
1907, but he is fearful that a credit
panic and possibly a stock panic is
remedial measures are taken. The solil- :
tion. he said. lies in the liquidation OF
credits.
There is 100 .much borrowing, too
Is. not Tar of when business men who
now are borrowing heavily and reap
ins enormous pronts as the result Of
orgies OF spending on the part of a
I iinploring their banks and other nnan-
eial insiitntions for help.
now BY reducing their credits and
mold down unnatural expansion Will
be the ones whom the banks viii help,
/ can help" he said.
Fact Must Bc Faced.
-. am not a nessimist," he assured
face the facts. We have got TO face
thcIi sooner Or later. and We might 5
! well begin now" t.,, --r
Revert!ng TO the panic OF 1907, he
/ declared that Richmond was one of
the few cities of any size that wealth
cred the storm: that continued TO pay
( ,r!buted 10 foresight. we didn't know
what was going 10 happen. but We fel,
that something was in the air, and we
were ready for it," he said.
The prices OF everything. includ in :
labor, seem TO be about as high as
they viii ever get, as they possibly
can can get he said. "soooncr or later
when they do. We are go!ns 10 have
The abnormal increase in prc-war
where from five to ten times what
they were in 1914. cannot continue, he
said.
Urges Treaty ratification.
Mr.. Miller blamed the failure OF
Congress TO ratify the peace treaty
Tor much OF the unrest. The treaty.
ne said, Is holding everything at a
Standat!il. The world waits on Wash
!nGton, ne declared. The hands OF the
nnancial world are tied. pending sign
ing of tho document.
The United states must ratiry be-
fore business can hope 10 take its
- N "A F.i
ne asserted. lie characterized The
rcacc pact as not perfect. but fair and
reasonable
More wildcat securities were sold in
this country in the last twelve months
IMAM IN any previous twelvc-moniil
period, nc said.
nc said. reading from a statemsn,
which he credited 10 George Eoherts
OF the National city Bank OF New
York. who IS an acknowledged author-
ity on financial matters, I'VE will have
to abandon the gold standard"
lie produced figures TO show that the
production OF gold in the United States
200; 1920 tcstimatcd), $4,000. .ooo.
Gold Mining Pays Less.
Mining of gold for use as currency,
ne SAID, fast is becoming unproftahl
OF ,jcwelry than is being mined, he
Heading from a letter from George
): ScaE. governor Of the Fifth Fed
erai Reserve District, which sounded
note of warning, he read hEurc>;
which showed that the reserve funds
in Federal banks throughout the coun-
Try on september ID were so.073O00. :
oeo. and in member banks OF the Fifth
District, sl27.000,000. There is a
limit 10 everything human" he said.
and the Federal reserve system Is
only human"
Demands on capital within the next
Two or three years Will be tremendous.
are going 10 need money. The rail
road situation, he said, is a serious
one.
In conclusion he urged his hearers
not to become frightened or pauiclky
nut To do their part to avert what lie
said is hound TO happen unless protcc-
i've measures arc taken at once