The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-12-03
Subjects Star Readers Are POndering Over


1.-THE RinKmastcra interest In this
matter II the same aa that 81 every
citizen: lie lives here and dei1res 20
s.e the city prosperous and he knows
that without commercial credit m
duntry langulHhes. the public have
less money 10 spend: more men and
women are out OF employment and
times are bad. ana he knows further.
more that until commercial credits
are again distributed by the banks
We will have no mend In conditions.
which all admit are acutely bad az
this time.
Even the bankers admit that mon
ey In tight" and conditions are 10
well known that u seems unnecessary
20 refer 10 Mr. redriok's statement
TO the effect that the only reason
any individuals or business firms are
refused money In seattle-or else
where's that they have nothing 20
offer nothing but personality"
There are too many weilcstabliahed
firms 81 good credit who have been
refused Ia make IL necessary 20 re.
flute any such statement. N Mr..
iiedrick means when he says moth.
ing 10 offer" no collateral such as
Liberty bonds. etc. u may be ed.
United that business firms are not
generally In the habit OF investing
their funds In such ooilaferai--tbeir
funds are. and should be. invested in
tho business In which they are en-.
gng~d and such investment In itself
forms the basis Of commercial credit
Mr.. Hedrick nays the RingmaHter
asks some very general and very
pertinent questions concerning the
investment by local banks in c1n-
mercial paper, but ai,ho he refers 20
these queries as superficial" he does
not answer them speciflenily--eyen
specifically. ~. says that becaurc
commercial paper issued BY the large
Eastern concerns Is custoinarily paid.
! IL must be paid out OF legitimate
earnings. The. tingrnaster simSls
amke~i N IL were not the custom f6r
such firms 10 meet maturing paper
thru the irrue Of more paper, Hs
did no, say " WINS good business 20
do so. Is II or IN II not the custom
with reference 90 the purchase by
local banks 81 foreign bonds; IL 70
true that the banks do not carry
these Indefinitely. bu, they are heavy
subscribers 20 practically every big
issue that n brought out ana wheth'
or they keep them for Investment. or
pass them ON 90 their customers is
wholly lnmnteriai as far as rho re-.
|, suit 20 Seattle IL concerned. The
money leaves the country and there
3. Just that much ieas left for local
use.
Mr.. Hedrics n right IN his state
rnent that high grade commercial
paper Ia one OF the v~ry b-st foru,s
OF Investment for commercial banks.
but no bank should ~ invsst--~rcept
To n limited ettent--tn outside paper
no long az there IL a healthy demand
locally. Commercial paper - fhort
frrm-afforde banks an opportunity
TO employ funds that might other.
wire lie idle. but 80 long as the de-
nand for credit %, hom. will sbrorb
local money. that money should be
loaned locally in preference 10 loan.
ing u TO ou;sidrr--
Both Mr.. Hedrtck ana she Yrfnr.
master agree that the banker II the
custodian OF tho pubiic'a money. but
Mr.. lfedriek would give the banker
rare credit for merely locking " up
and keeping II while the Ringmaster
believes II r. placed with him for
usc and for the NV OF the community
nE the circulating capital Of society
Money locked IN the safe does not
circulate and money shipped 20 Tim.
huctoo ceases 20 be the circulating
capi;ni Of society in Seattle
MFR. Ifedrick suggests that the
RlnEmaster II -induiTing In emo
ton. perhaps 20 some extent he ~.
but when surrounded by the dire dis
treau that IN met with on every hand
and when that distress reaching into
every home and every place OF bust.
mess 10 directly trnceable 20 the fact
that people are unable 10 get cr~dit
from the banks. why should not some
veh~nent emotion De cxpressed7
Very truly yours.
THE RrNGMASTER.
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