The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-07-01
PRESIDENT TO
ATTACK RAILWAY
PROBLEM SOON
Bankers Advise Him 1t Is
Only Way to Restore
Business

WARRINGTON, June Gothic
railroad log jam. President Harding
has decided, mtat he broken befor.
there can be- any return to- normnlity
iu American business md industry.
That was the advice given him by
the score Of western bankers who
d.ped nt the white HOUSE recently and
discussed with him the nations "a.
nnuCinl aud business health.
Thos. men painted no pleasant
pieturc They told the president Of
uncmpioyment. " shrinking bank
balances and depleted savings ne
counts, Of Reasoned production and
lrss"ncd buying power. Ana thcy
added;
wen soon be heading into . hard
winter. We've got to start some
where 20 pick up the dropped stitches
Of industry, ana the place where we
believe h thread eau most fec
tive ly be taken up ~ nt the railroads
Thtbugh IA railroads. the govern
m,nt can apply a remedy hat will
tom 40 thp whole business system"
Oppose Foreign Loans.
These bankers opposed the fuE-
r,stiun uf rastetn bankers, who pre-
c,GcG them by two weeks At thu
wu,to house. These bankers urged
the making ri further large ioans-
ON which they would get a commits
Alua-tO foreign countries. contcnding
America would benefit boy the general
h.ttermeut Of world e. mmcrcc.
III. western bankers said Ia" Inn
mediate financial aid should be- APP
Piled nt home and not abroad.
The Iarm credit situation. they told
Un.diur, b. greatly improved, about
40 Der cent Ut loinS made To farmers
having been l%iquidatcd. but husi-
ness generally b. In the dumps.
sist al situation.
Tho whole situation. IA" president
was told. cnn b., strairht"H.d out
without congressional action - De-
laws. Briefly. the situation d. this;
the railway are iu debt 30 the
government wlauc hundreds uf NIL
Hons ct dollars fui improvements
u.asc during he period uf govern
mHnt operation.
The government VIII not pay thcs'
similarly large sums for rentals und
BOO guaranteed toturrsl
Tnog oyornmcnt viii not pay thcs"
sums until the railroads pay hut the
railroads Csuuut finance thon" pay
mruts. Also. until they collect the
payments they hold 60 Doe due from
th, government. they cannot pay
their biilr
rh-s, bills are owed I'm lumber tie.
rail- and suppiy dealers generally an
over the country.
These men. unable 20 collect from
ca. railroads. are unable q" pay their
lills. and 30 business D. Iummvd up
uIl lloup the line,
bankers I,cmcdy.
The government, under existing
law. the president was told. has au-
tho.ity tn fund the capital investment
made boz tho railroads Tor not &" "N-
coed 20 years.
Dr. thar we're done and payment
made. the roads OF surla de-, for remit
ll and guarantee. things could start
moving.
Uutl o. ls d0u,-or until thr roads
g,t money with which To- pay their
IiIIs aud begin repairing ears and
replacing tricks-thinEa viii rrmaiu
300 % Jam.
The Alternative.
10 nothing ls ONE before he pres.
,ut harvest. crops will not move
prices WIl nu low ou "a, farms and
lIgh 300 900, ,iu,s. uu,Wpluym,ut will
iur ,i-, bus Ing power viii diminish
HuI tr,dIfs tighten aud winter vii!
COME viii tho pro- poet ul III" hardest
tIm,- his uItIlu has get experience
ed
such i- the picture is Do was paint
cd iur th, uhIof executive Dos the"
baker guests The very n,N day he
caused % conference To- Dee held be
two % th" secretary ct treasury. thH
secretary 81 commerce. the chairman
of the intUrttut, commerce commits
sion and b director general ct rail-
toIds.