The diamond drill., 1921-04-09
SAYS CRISIS PASSED

David r. Forgan. president OF the
National City Bank OF Chicago and a
man well qualified 10 pass upon r.
nancial and industrial matters, says
that the crisis has passed In the In
dustrial slup which the world has
been passing through.
NO conservative banker will COM
NIT himself to very definite prophecy
at the present time says Mr.. Forgan.
This, however. may be safely said
that the crisis has been passed, that
the worst IS over, and that recovery.
although slow, has begun and will be
sure. II the new administration az
Washington disposes OF our chief
problems wisely, / see no reason why
the present year should not witness a
return TO fairly normal business. Re
vision Of federal taxation. the tariff
and railroad freights are fundamental.
They are too complicated TO discuss
here, but they must be studied and set
tied scientifically not politically.
1.-TWO things think the government
ought TO do: First, the debts OF the
allies TO the United States should be
funded. AT present we hold simply
/. O. us, on which no interest has
been paid Although a suggestion
has been made by Great Britain that
all interallied debts be cancelled Ga
transaction which would be a loss TO
her and not a gain) we believe there
is no sentiment in that country in
favor OF canceling its debt to this
country The accumulated interest
should be added TO the principal, and
50-year bonds OF the various govern
ments, with proper sinking funds, |
bearing a moderate rate OF interest |
taS-free in this country, and guarant- |
eed by the United States government |
should be accepted in payment of the |
debt and sold in this country, or ex-
changed for a similar amout OF lib !
erty loan bonds. This would greatly |
reduce our national debt and the IN
terest thereon
Second The balance OF our own
liberty loan issues should be refund
ed into an Issue OF bonds payable at
the option OF the government, after
twenty years, bearing 4 or 4h per
cent and tax free to the extent of
$4,000 900 In any individual holding
This would relieve the channels OF
business, particularly the federal re-
serve banks, by the tendency il would
have 10 drive these bonds into the
strong boxes of Investors, where they
belong II would also put liberty
loan bonds to par and thus keep faith
with the millions OF hard working
people who invested in them.
IF these two things were accom-
plshed the chief obstacle to the inn
OF foreign exchange and
free intercourse with foreign coun-
tries would be removed and money ,
Tor commercial borrowers would, 10
some extent al least. be made cheap
er, which would help the business re !
covery that we are all hoping for
Liquidation both in materials and
wages must be well balanced. Some ,
retailers are still trying to get war J
prices, and some laborers are still
threatening strikes for the mainten- :
ince OF wartime wages. These will i
have to yield Generally speaking I
however business men have taken
heir medicine. and laboring men
nave shown reasonable disposition :
II all OF this results in reduction OF
he high cost OF living and a return !
20 saner business ideas the present I
hard experiences will not have been !
IN unmiSed eyil'
Nn ~ ~