New-York tribune., 1920-05-01

a foreign enemy, We must have a ma
uonal budget so that no appropriations
will be made by Congress without a
critical examination. We must restore
the railroads to a self-supporting
basis by establishing rates which will
insure return for capital and labor.
We must produce more, but, more inn
portant. still, we must consume less.
And, above all, we must work and
save"
ECONOMIC Flans
Plans for solving economic problems
brought about by imitation and high
prices were proposed by dozen speak
ers. They included Paul Nj. Warburg,
the banker; A. Barton Hepburn, of the
Chase National Bank; ]. II. Hollander,
professor Of political economy at Johns
Hopkins University; DR.. B. M. Ander-
son jr., of the National Bank of Com
lnerce: ii. Parker Willis, professor of
banking at Columbia University; Ed
win w. Kemmerer, of Princeton Uni
ersity; Samuel McCune Lindsay, presi-
dent of the Academy, who presided; ;;
Dwight w. Morrow, of J. p. Morgan g.
Co; George L. Roberts. of the National
City Bank; Governor Henry J. Allen of
Kansas, w. S. Kies, of Aldred g. Co.;
John A. Hobson. of London; Carl
Plehn. of the University of California,
and Hartley Withers, editor of "Thc
Economist" London.
The foreign situation was discussed
by j. Joyce Broderick. commercial
counsellor of the British Embassy;
Maurice Casenave, French High Com
MISSIONER, and Professor B. Attolico,
Italian Commissioner.
Reduction of government indebted
ness and the halting of further bank
credit and note issue expansion were
urged by Mr.. Warburg.
First, we must fight imitation with
all the means at our command by ar
resting the further increase of govern
ment indebtedness and if possible re-
duclng it," said Mr.. Warburg Second,
we must call halt in further bank
credit and note issue expansion. We
would thereby destroy the atmosphere
t o1 easy money and paper prosperit ?
that makes for individual and corporate
extravaganza and fosters discomfort
among the masses, rendering them dis
inclined to give their full measure of
work. This includes the most difficult
task OF curbing the production of un-
essentials and of stimulating the pro-
duction of essentials.
Must Stimulate Production
""And finally, we must fight rising
prices by stimulating essential pro-
ductlon, both here and abroad, which
means that we must furnish Europe
with the materials required in order
to rehab!litate her industries. so that
once more she may become self SUP
porting. AS far as this involves the
granting. OF further credits, it should
oe our determined purpose to provide
.hem from our savings. If We are in
capable. or too irresponsible to ac-
ccompish this, we must submit to pay
ing for the unsaved balance bv inla-
ton. That would prove, as we have
seen, wasteful and highly regretttable
alternative, but it is easier for MS to
bear the sacrifice than for Europe.
Banking imitation must be combated
by an earnest attempt to reestablish
and preserve the healthy check placed
upon us by conscientious observance
OF our gold obligations, which implies
a str'cter control over bank loans and
a greater effort to liquilate by savings,
excessive commercial and governmental
loans"
DR.. Anderson contended that present
nlgh prices are caused by shortage of
goods and speculation. when our
enormous export balance disappcars
and when our domestic markets are
called upon to absorb three or four
hundred million dollars worth of goods
a month, which they have not been alb
sorolng, we shall see lower prices" he
said