The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-05-11

approximately $50 members Of the
association and visitors were registered
soon after the noon hour Tuesday Of
tlcial badges To the number OF 500 were
given out to the early registrants, and
IL was stated that more than 100 more
delegates and visitors had been regis
tered without badges being given.
This shows. from the standpoint of
attendance alone, the great interest be-
ing shown by bankers all over the state
and by leading financial experts from
distant cities in the Memphis meet
| ing.
Stamping the gold reserve system as
ataVistic and advocating it's abolition 10
be substituted by reserve of negotia
BILE papers and interest bearing bonds
secured by productive pledges, T, ii,
Price, New York editor of Commerce
and Finance, and one of the best-posted
men in the country on economics, was
the principal speaker Tuesday after
noon.
The gold reserve system is archaic
and unnecessary, MIR. Price told the
bankers. The finance OF the country
is in dangerous position, he said, be-
cause the present credit structure Is
builded Sii. 1900, 900, 600 high and based
on gold Of little more than $500, 000, 600
A forced contraction of credit and -
panic may follow Immediately any re-
| duction OF the gold stock The fedora
reserve bank has taken such steps al
to endeavor to bring about reduction II
| credit structure. he said. to meet wha'
| everyone admits a Forthcoming dimin
| ishment OF the yellow metal supply.
AS to Interest.
| Tightening Of interest rates IN thumb
| screw fashion, according to MIR. Prtce
| will cut the credit structure to keel
what he sees as a diminishing gold sup
ply within the prescribed safe ratio
Gtiph would hiring TfiHl manic he
declared, and conditions Of greater dis
tress than those Of today because the
period would be one of descending wage
scale rather than ascending.
Vegetables backed by railroads. wa
terWorks, public utilities, OF which to-
day there are outstanding In the Goun
try many billions, Mr.. Price advocates
could be used as reserve. They are
more valuable than gold he pointed out,
because they are productive where gold
lies idle in the vaults
He urged bankers to use flexibility
rather than Figidity IL their laws, as
suring business in general Of credit Ia
meet crises that are. he said, sure 10
arise, as deflation progresses.
The report OF the secretary, II. G.
Huddleston. OF Nashville, showed to-
tai membership Of $40 banks, or an in
crease OF 81 new members in the past
~ months. Some OF the new banks
Iactualy enrolled, Mr.. Huddleston de-
clared, before they opened for busi
ness
Growth in the insurance department
was shown by the report, 1t pointed
out the good derived from the "Bul
letin," a publication issued by the asso-
citation Work Of the committees also
was touched on and mention made that
their reports would be heard later.
These reports from committees are
scheduled for Wednesday. The report
al touched an ~ Ia.
ters.
An informal talk by r. S. Hawes, St
Louis, president OF the American Bank
crs' association, one of the country's
| foremost financiers, was an early fea-
! ture Tuesday Of the convention The
program for Tuesday was an elaborate
one, which gave promise OF touching or
subjects Of much interest and long
watched by bankers and business men
The Chisca convention hall was crowd
ed 10 capacity when Mr tawes was
ready to speak, lie gave sound advice
| on various phases Of the present flnan-
| cial situation touching on many sides
| Of the question. An open advocate oil
| the theory that reduction Of eXpendi.
| ture at Washington is absolutely neces-
| sary before a drop in high cost is pos
| sble. Mr. Hawes gave striking oN-
| Rmpes Of money 5spent by the govern
ment in bales. He asserted that this not
only sets pace for the people but
through process Of taxation. resolves
| the situation into one whereby manu-.
| facturer, jobber and merchant are and
do force prices upward almost to the
| limit Transportation facilities have
| much to do with conditions OF the day
being in such state as to warrant un-
certainty In every enterprise, Mr. Hawes
said He contended that manufactur-
| ing, first set back By delays In ship
| ment, naturally retarded commerce gem
| orally.
5 + Thomas, Brownsville, presl-
dent Of the state association, was in
| the chair at 10 o'clock when the con-
yention was called to order Mayor
| Rowlett Paine, after invocation by Dr.
c. H williamson welcomed the bank
ers to Memphis, pointing out this city S
financial growth Its position toward the
cotton planter and the farmer Of the tri-
states and its commercial and indus
trial advantages For the local bank
ers, J. G Humcs, president OF the clear
ing house made the visitors welcome
In response II b Alexander cashier OF
the Home bank, Winchester, made an
address
Thomas Makes Renort