The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-05-24
CREDIT EXPANSION
MUST Be STOPPED,
DECLARES HOUSTON
By DAVID LAwRETCr
(copyrtght BY Tho Intelll1eneerO


rarv II the Treasury n. +. Houston. His
opinions az to the business and hnanciai
outlook and thoughts "n the world Sit-
uattCn ar" therefore an au' h"ritatlS"
oppression 81 the policies Of the United ,
States government NJ III" present mo
uiCnt. Mr.. Houston was asked by the
writer 10 discuss the various phases OF
Tho credit furry and economic upheaNal
Mhi.h america is experiencing. Here
are some Of the SeCretary'S thoughts rs
hr pennCd rhem:
FIRST. there is no essential reason
VhS this nation should not continue
financially on a sound and safe footing.
There is no present cause for alarm. u
IS important that we shall at no time
become alarmed nr lose our heads. Pan
irS arc the result in part nt unwh"lc-
some states OF mind. When one has
difficult situation 10 face. il lS essen
tial that hr keep himself we'll IN hand.
but IL is equally necessary that no look
the facts SQuarely in the race. InduS-
trially this nation iS in a fundamentals
sound position hui there are tendencies
which must be controlled. Undue credit
expansion must not be permitted. rur-
iher initiation must be prevented Mary
~ our banks were not in u position thcy
should hold AT the beginning Of the
planting season. If Initiation continues.
i will mean further. increase OF price;
further demands for wages. increased
costs, unrest and strikes.
Must Have co-operation
"Second-Increascs in the discount
rates alone influential as they may be,
WI! not sur II.S". nc s;nS sa'U mon
rl.Nt cV-ePe."ul%;n M ot .cn;,n;rotion
''''ouSh tnS t,,,,.S, 90 tbrn,,cS rcS
straint IN their demands for credit and
especially Of all bankers in extending
HCc"nooa''o"S' 'S "' N'e "'S' ''''''
an0s. ,,.-.a..5 s,-a.n.
s"Thrd-Untl recently the govern
mcnt seemed to be in a position where
II could 80 forward with existing tax
provisions and meet its obligations
from tax receipts with occasional resort
=" temporary borrowing through tax
certificates: but the situation has re-
Gently threatened tn DC ChamGeG 6or ~ sas
worse; me rahroad I'sLs'a'tun ,n, nc
piaccd ourueh uiS" I'M t.',TH.I
which together with apPr9priati'oms
asked Tor by Inc l,aiiroau .NuI''.'ISS,a ,,S
non may approNIu,ate ot'i'ou Tti,;nn. Ttt';
Nnd now comes SnrsdT i,I; "I an .,,o Nj
IONS M IN me SNAP OF thnr tbcro must he
II thiS materlaI'zes' then tnc1e att ml1St 80
lhcr"tS"d taAcS. OF Soa,e. -T6Ss aontd
r"WlnSS NJ IilCISaSeu ra'rS. ''' -
r|S"l' IN tur m nv , ir',,',H,,atn add
Hrc1SSd priTNS; n Ina eg eH one bmndrcd and
T''h Z" me ou' u''S W - I,I 1,nrcci
~ M !.,, ~ tuCp s.rrities held nv
Ton OF kS,, kIrv, ,I.iTsn ronewad mn.
-"S"'S ~ ,Int ~, r lii not yenture
rESt, oma "'i"T Srnn arazSns tbins about
10 prsdIct. Ihe an'a+s S ,.6r,, So,,,
ms bonus propossaa Is - snas -, tv.sn
people 'n rsspo"S, tH So,or Jn;n1 his detri-
ihEton Sce'u 70 laSU. uon5 ,hn o,,oi,,,
mont TO tne ooGs pou'iS, an N,ie tSn,,r bayc
,riking thins is toal lrS o. e,sn InSr' 49, ~
the courage 70 say SO am to,; !" ~ ,hat
,sf ,nsiort}% Of the fine boys who patriotic
Ally responded 10 tne cal, HI uou@,,SrS @
would ask thlS SUBSIDY 'mCE J
wnhl II hEolESo' Hnu =. ,a,rowSnd
'aken. Sh"uin o' sTtH''E a'p''
.rn 80 ,,-,nocS,aIs mood ~ for
rour' TOUT Tt tt W. art;cTio r,,. for NOM
S s"I', ~ c"IoDer rata with tho Off
otr o1''ns E ~ Eodcrsf Rcscrvc system and
Its - a.. ,mv Tho nrohicn, is thrirs
ne T'HSurS' I"c ~ H. nrriciais'
nuite as oeilnl,ety IN !, - o' r,nrn ,han
',ut totOe mus oe h,,sirns. me, and
ne cU.'i Thorn INNS, ~ hs co-operation
from that part OF the puotIC ShlCH - ~.
= position 10 say" and eEsrFp"ay mus
Ievotc h'tie more n,sn T.,
hard WORK. some PeOPie are ilpI ~ -
position TO save. but many can saw
who are not SAVING. ~
tItth-I ndounteGE Nv mem ~ ,,.nid.
should be imposed II thsy can ne aN"iG
cd. But they may n"t D. aV"Iu'n IL
many groups Of people conttnne to clam
or Tor Appropriations, Nhu ! u"n.H S .',s,
,nSiy assert tnat inc pc"pic an" ~
Executive Departments are IN tne man an
responsible Tor increased heurNnd on ,tie
n
"rnWeht aCtNI'lsS' ~ 49,,
services comes from lntrn' u" H"t
speak eNtraSaHShIlS "h"H say mat ~.
seven years nave cNPclasa mary
lines as rnuCn EloI ,, III 80 49,, "
mahds from Sr"upN pt P'ntLe -, aPp''
prEatiOnS SS l uas. ~ - ,r N.H '''"''
~ Ex0ess TO ftAs - ~,
SiNth-the eNCtSS p pr'i,.S IN - no'
All evil. IL mas G"od teatut'S' IL ~ pIoI
IuctiFe OF rfSthur. - - SLY 80.
proiteerS. nuL ,,'In cnrr;
waste. IL "orNS un.pus''H s'a -, -,
'louSiF. II ueptnuS i'''l. .at,ir.tio,, - :.
II form or Corpota.e sfn.se %rsn,t'1e'."m III -. -
puniShes conservative business anu re-
wards ana prou"tes sIoCh S MaS'rnnS.
Many OF the corporations cHHrSru WI"
prohteering get OFT very HentiE oe
cause they are so generously cap!'aI."ea
and tho tax - no" coi',InsH 20 p@r 20 "l
business. Il docs not apply 10 all bus
ness concerns and therefore works un-
Justly. The suostltnti"h OF LS1I rue
IN uudistrlbutcd proiits "ouI9 pIa'' IN
corporatcd ana nnl"C"IPo' P Po'Seeu n 'o''e'"S
moro nearN on IL -. $3.50
OooA Suos inAs :,
SeEentn-M "''. W" nen ~ f"'ta
cool 1duE'nenH,, Iesa1u .Ei 80, ".'u
'nuraSc 20 to',"" ~
them. Let us nave uep7,e' C,''ic'Sth an"
- progress nS All H1."'s' pI' 't US ndNe
constructive crl'iCiSm ana ut US nave
progresStEes VINO know where thCy are
headed and arc headed IN inc riSnt a.
r+ction. EcohonhCdiIy ana p",I'ICh'lE
we were I'm the war from the moment OF
the first movement or thH German
troops. We MsrS IN II yra,S petnlr we
and we shall be In It economically and
politically Tor many years h,ter our iaSt
soldier Is wthdrawh lr%tIi r.ur"pF; ROW
idle II is for men TO insist that this
oh N. cannot