Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-02-19
.CR|T|C|zEs CONGRESSMAN /
JOHN M. MILLER DISCUSSES
NATIONS FINANCIAL STATUS
Liberty Bond tatc was Too Low. De-
cinrcs bahk Prcsident-Sccs Drop
In Prices Ahead,

Arraigning congressman in Wash.
inE,on for their delay in bringing
aeout settlement and an adjustment
the world because Of the treaty con.
troversy. John NJ. Miller, Jr.. president
OF First National Bank, stated in an
address before members OF the iiich
| mond Chapter OF The American lnsti-
tute or thanking. last night at the
aitions were aggravated in the country
because there is too much endeavor
for profits without regard for the safe
~ of the country's finances.
Optimistic as 10 the future condition
And prosperity of Nmcric;. Mr.. Miller
stated that lie did no, believe that
~ SGe re would eyer be sudden deilation
and confusion. but that the change
would come gradually.
Causes Arc Discussed.
Sommsntins on tho causes, for the
Imitation OF prices the speaker said
have advanced moro since the signing
OF the armiStice than ever before One
.cason for this. he said. was that Lib
low Il rate.
In View, OF the low rates of the Lib
criy Bonds. the Federal Reserve sys-
TEN found il necessary TO lower rates
consistent on other papers and securi-
ties. said the speaker. and consequent
ly the bank KS were enabled TO borrow
money AZ low rates. upon which con
u.
Following this method the banks
lost sight OF the safety OF the coun-
try.s finances and confined their eff
forts TO the Increasing profits. stated
MIR. Miller. wherein banks in New York
CITY alone loaned approximately So
oeo'Voo:oo0, leaving the burden of more
from the Federal Reserve system thus
reducing the gold reserve. Mr. Miller
highly commended the Federal Re-
serve system which practically saved
"A t,..s.
panic.
Unwisc 10 Draw Gold
While it is safe to draw from the
gold reserve with the system now in
operation Mr. Miller stated that ii was
unwisc in that the gold production OF
tnc country had practically reached
.nc unit anu constant efforts should be
made TO increase the gold reserve OF
me country during peace times
Necessity for th!s, stated Mr.. Miller,
.ieS In the status of the financial
standards OF the world at the present
lime wherein the various nations are
Stii! IN confusion and unrest. and need
t .,.,nd pr&dne,ion of gold. in that gold
IN many countries including England,
france, Italy. Belgium and Germany.
w ne,h, the standard is practically
mined is not more than enough TO take
care OF the trades and industries. cost
worth. "
Must Cut Liabilities.
for the gold reserve of the United
states 10 DO increased il is necessary
| therefore TO decrease the liabilities OF
cia! mediums, stated Mr.. Miller In
| commenting on the reports through
d [nG s1iuntry on the large increase in
uhepostls credited TO nearly all banks,
the speaker said that most Of Thasn
11eposits were really credits in the
t l9rih OF checks and NOTES OF various
him , winch We're naturally large be-
. ~ flpN "a
FURTHER. imitation OF prices is due To-
great extent TO the excess profit tax.
Whlcn AFFECTS the various parties in :,
tercstcd in the production OF 4 com
inodity until it finally reaches the con
suineI who pays the entire bill. de-
cared Mr.. Miller. IN spite OF this.
engaged in by American people" as
serted the speaker.