The Washington herald., 1921-04-24
BANKS n MUST AID
WHOLE OF NATION,
SAYS FINANCE HEAD
Eugene Meyer, Jr, Talks
To Brooklyn Club on
Nations Problems.
URGE COOPERATION
Agriculture Needs Relief to
Carry Depressed Commodi-
ties Through Deflation.

NEW YORK. April 20. - Eugene
Meyer. jr., managing director of the
War Finance Corporation. told
Brooklyn bankers here today that
they must consider the financial and
economic problems from the ma
tional rather than the sectional
point of view. He spoke before the
Bankers Club OF Brooklyn and said
in part
Greater New York is today the
greatest banking community In the
world. II is the greatest banking
community because II comprises
within its limits the most important.
single aggregation Of banks and
bankers in our country which holds
the most important banking re-
sources in the world. In proportion
TO the magnitude Of the banking re-
sources of Greater New York. there
are obligations resting upon the
bankers to insure the wise and far
sighted use of these resources for
the benefit Of all.
Impression Crows
The work of the Senate Commit
tee on Reconstruction built the
foundation. 1 believe. for The atti-
tude and feeling. which has been
growing and which we all hope Will
continue to grow. that the Congress
and the new administration, as well
as the bankers OF our financial cap
ital must consider the economic ana
financial problems of the different
parts of the country from a national
point of view rather than from the
point of view of sectional interest.
The Imitation Period
From the beginning of the war
the bankers have borne heavy oo-
LEGATIONS. They mobiliZed their per-
sonnel, their organization and their
resources, for four Liberty loans
and q Victory loan, and raised q
total Of $21, ,00o. 900. In addition.
they raised huge amounts contin-
uously through subscription to
treasury certificates
I'm the late spring and the sum-
mer of 1919. there began a pc iod
of postwar imitation and speculation
in securities. commodities and bus
mess. Even at that tine, 1t was
evident that the supply of capital
for the essential requirements OF
the people was inadequate. A
movement in speculative notations
developed with extraordinary speed
and reached unusual proportions.
Signs Of Crisis.
throughout the fall of 1919 and
the spring Of 1920. practically all
the signs that usually precede a Sc
rious crisis were present. In some
directions. however, the collapse
did not arrive as soon as expec ed.
and the delay served to induce .
false feeling of confidence. No more
trying period has ever been expe-
riencedT by the present generation
of bankers than that through which
We have recently passed and with
which we are still confronted.
The. foremost among the indus
tries (which are suffering Is the
great fundamental industry of agri-
culture.
The Agricultural Crisis.
The meaning of the agricultural
crisis is not yet fully appreciated.
of q great part of our population il
W6NCNAaAAy AAnpolEcu, anu lndI the
commerce and industries of the
manufacturing centers are directly
involved, To this crisis as much
as anything else is due the plight
Of the railroads and the jeopardy
of railroad investments. Large
numbers of bankers in the agricul-
tursf Communities have had heavy
Withdrawals OF deposits and are un-
able to liquidate their outstanding
loans. The purchasing power of a
bushel Of wheat, a bushel of corn,
a pound of cotton. and of a hog,
at today's prices, payable at the
farm, when expressed in prices of
the things the farmer needs and
buys. Is lower than 1t has been at
any time within the last twenty
five years. Not only are prices low,
but markets are highly unsatisfac-
tory and narrow even at the lev
prices. It is up to the bankers and
business men of America to make
up their minds whether they want
TO help dig the farmer out of the
hole, or whether they wish to stay