davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1921-11-13
T UNEMPLOYMENT and short
ened purses among consum-

81
ened purses among consum-
ers in general have not af-
fected retail trade as much as might
be supposed. Local retailers, in par
tlcuiar, are prone to express them
selves as we'll satisfied with the pres.
ent state of consumer buying. In
tact, many Of them confess that the
volume of buying in the stores here
has exceeded their expectations sc
ia rthis season.
New York retaildom. according to
the statistics issued by the Federal
Reserve Board, has felt the hand OF
depression less heavily than have most
other communities. This is explained
by local merchants, as 4 result of the
wide diversity of industry here and
the proximity to wholesale markets
which permits the retailers to follow
the ebb and flow of prices more
quickly than can their less fortunate
brethren now so favorably situated
AS one retail executive explained the
situation: There are always plenty
of people here who have money to
spend, and who will spend it regard
les of business conditions
Economy on the part Of the public,
however, has been felt in the retail
torres in the demand for low-priced
merchandise This demand has been
so insistent that many of the stores,
which formerly carried only the high
est quality merchandise have put IN
cheaper lines in. order TO bring their
sales volume I'D to a point sufficient
to clear the high overhead expenses
with which the retail stores are sad
died and which they find it difficult,
IL not impossible, to reduce at present
On the other hand, some of the high
class shops which have steadfastly held
to their old standards of high quality
regardless of prices appear to be win
ming out, although they admit that un-
til the last two months the road was
hard and rocky. THE tide has def
niteIy turned for u.s." said the manager
OF a department in u Fifth Avenue spe-
cialty shop which makes fetish Of the
quality of it's merchandise. I'VE have
stood by our standards when we saw
many of our competitors putting cut
merchandise priced far below what we
were asking. Take mems shoes. for
example. If you will glance through
the newspapers you will find that most
stores are advertising shoes at So, 81
and So. Now, shoes of the type we
have been accustomed to handle here
cannot be retailed at that price. Our
lowest price is So, and from that we
range up to $14. We boldly advertised
our higher prices and the volume OF
our business during the fall season has
been more than twice as great in oul
high priced range than it has in ouz
low priced range.
The most significant fact that we
have discovered is that our charge &C.
count trade is increasing. BY this
do not mean that we are opening &c
many new accounts, but that the old
accounts are becoming more active
New-York tribune., 1921-11-13
Not Universal Par,acea

The plan presented is not universal
panacea for the ills of Europe. 1t will
not balance budget when the expendi-
sures are extravagant and taxation in-
sufficient. 1t will not cure an adverse
foreign trade balance where the country
ia demanding large imports and has
little to export. 1t would, however, offer
what it seems to me is now greatly
needed; namely, some firm financial
ground to stand on to commence the
reconstruction of European finances.
If it were carried out on the terms
which | have suggested; that is, q CEN
tral bank with a capital of ST Zoo, ,000,-
op0 gold and currency issue backed
by q minimum of 90 per cent of gold;
it would provide the possibility of is
suing s5,000,0o0. 900 of sound bank
notes, in which the whole world would
have confidence and which would be uni
form in character throughout the ter
ritory adopting the scheme.
The plan would not infringe upon
the sovereignty of any nation; it would
not tie the hands of any finance min
lister; it would not necessarily stop any
rency issues of its own, or making is
sues from a national bank of issue of
It's own. although I certainly hope that
iTs tendency would be 30 curb, or
rather to make unnecessary, further
food of worthless paper currency.
I offer the plan as doctor might
offer prescription to a patient I have
visited twelve countries, and each one
is Ill in varying degree, but all of the
same disease. The progress CT the dis
case has reached a point where it is
extremely difficult, if not impossible,
Tor finance ministers, no matter how
clearly they may see the evils of the
situation or the extreme danger of
New-York tribune., 1921-11-13
Holidays and Ginning Report
Slow Cotton Mills Activity
New England Finds Trade Checked With Prices
Softer and Buyers Withdrawing
From the Market

talization of s37,710,ooo. or approx
mately 1.73s per cent. The amount IS
less than half that paid year ago. It
Is S65,000 less than the third quarter
New Bedford mills have not completed
declarations, but the rates continue 10
Indicate slightly improved condition
over Fall River.
The fact that the wage question was
not discussed at conference between
the Fail River Cotton Manufacturers
Association and the Textile Council.
held recently, leads to the opinion thar
no immediate change in the scale is
contemplated. General trade condi-
tions, it was announced, were the only
things touched upon, and since the ex-
listing scale continues for six months
unless altered by December /, that con-
ference was regarded as the logical
time to broach the possibility Of a
change if one is to be considered Dele
gates from various cotton eenters To
a meeting of the emergency board Of
the dominant textile union during the
week declared they saw DO Indication
OF q reduction.
New-York tribune., 1921-11-13

~ NEsof the more serious prob
lens the world will have to
face IN the near future will
be that of clothing its people. AS to
the immediate future, estimates are
as numerous as experts.
Although it is generally accepted
that there is enough raw cotton, both
OF American and other growths to keep
the mills of the world supplied dur
ing the coming year, the fact cannot
be gainsaid that this Years crop Of
American is the mallest in quarter
Of century. One authority says that
il the acreage curtailment Of this sea-
son is continued in 1922, there is a
possibility that there will be short
age Of no less than 5,500,000 bales of
American. Another expert told the
recent meeting of the American Cot
ton Association that t'in the twenty
years up to the end of the 1920 season
consumption had overtaken supply at
the ratio of more than so to z. This
year we fAmerica) have raised but
little more than half the worlds de-
nlands; therefore adding to the fright
tui ratio of cotton exhaustion against
production"
With the bald fact Of an imminent
world shortage recognized by the lead
ers IN every cotton manufacturing
country, practical steps are being
taken TO counteract organized efforts
on the part of the growers to cripple
The industry. self-preservatioa being
: ia1t
New-York tribune., 1921-11-13
Capital in Dollars

I. There would be organized in each
OF those European nations which invite
the establishment of branch of the
Gold Reserve Bank of the United States
OF Europe a banking corporation
created under special Legislative act.
These several banks will be referred
to hereafter as gold reserve national
banks" The capital of each would be
in gold dollars and in such amount as
might be decided on by the trustees.
All the capital of each gold reserve ma
tonal bank would be subscribed and
paid for out of funds of the Gold Re-
serve Bank of the United States of
Europe
s. Each gold reserve national bank
would be managed by nine governors,
who would be appointed and hold office
at the pleasure of the trustees of the
Gold Reserve Bank of the United States
as the trustees" Three of the nine
governors of each gold reserve national
bank should be experienced bankers.
Three should be selected from among
men we'll qualified by character and
position TO represent the interests of
the general public, and three should be
selected to represent specifically the
interests of agriculture, industry and
commerce. The nine governors of each
gold reserve national bank would prob
ably be citizens of the country in
which the bank is located.
.. The trustees should appoint an
additional governor of each gold re-
serve national bank, who would be the
chairman of the board, but who need
not be citizen of the country where
The bank is located. A deputy would
be appointed to act in the absence or
incapacity ct the chairanan, who would
be a. citizen of the country.
10. The board of governors of each
gold reserve national bank would elect
New-York tribune., 1921-11-13

total capital OF the Gold Reserve Bank
Of the United States cf Europe
22- Whenever rs per cent of the Class
A stock has been converted into
Class B stock the provision regard
ing the FIVE American trustees and the
provision regarding the approval Of new
trustees by a majority OF the IN
serve Board OF the United States should
lapse.
Regulations for Stock
%. It is the aim of this plan 70
create an organization which would
not be controlled by the financial in
terests owning the stock. and so insure
that there would be no contest between
different governments or nationals to
acquire stock for the purpose of in
fuenclng the management OF the Gold
Reserve Bank CT the United States OF
Europe. II might be provided, how
ever, that the charter or organization
document, which constituted the fun
damental law under which were ad-
ministered the affairs of the Gold Be-
serve Bank of the United States of
Europe, could be amended, after rs per
cent Of TIE Class A stock had been
converted into Class B stock, provided
United on program for some new
plan OF management. Il should be
provided, however, that such q change
N the fundamental law could not take
Place unless the remaining holders of
Class A stock received an offer. rood
for ninety days, of sI20 per share and
accrued dividends, or were given the
opportunity at their option TO change
the remaining Class A stock into Glass
stock
"a The circulating notes Of the Gold
Reserve Bank of the United States
of Europe should under normal condi-
tions be redeemable on demand in gold,
and for the purpose of redemprion-
there would always be on hand a gold
cover of at least 20 per cent. It is
obvious. however, that in the present
state OF universal distrust Of ali forms
OF paper money, any financial insti-
tuition issuing circulating notes and
offering at once to redeem them in
gold coin might find that it's rold
reserve was withdrawn as rapidly as
the notes were put out. Any plan OF
the character here proposed could not
work IN community which used the
notes only to draw out the gold. and
boarded the gold. If such an endless
chain was permitted to pump the gold
out, so that it went Immediately into
nldlng, the usefulness of the bank
would be minimized. While it is the
Intention to create a currency that
should be redeemable in gold, and for
which gold could be had at any time on
demand, that desirable condition could
only be attained in time. and after
general confidence in sound bank notes
had been restored.
25. If the withdrawal and boarding
of gold should be carried on TO a de-
gree that impaired the usefulness of
the bank the trustees should have
the power for the time being to sus-
pend the redemption of the notes IN
gold, and they should also permanently
have the power Of suspension III the
event of war or other great crises.
The provision regarding this power 70
suspend the gold redemption OF the
notes would need to be drawn with
great care. Merely the principle in
volved is here mentioned. Redemp-
tions of currency in gold would only
De made when the notes were pre-
sented By bank and not on individual
presentation.
New-York tribune., 1921-11-13

purposes of the business; this build
ing and the ground upon which it
stands to be given the same ex-terri-
torial rights as those enjoyed by q
foreign embassy.
Third-An undertaking that there
will in the future be no hampering
legislation enacted against the free
circulation of the notes of the Gold
Reserve Bank of the United States of
Europe; nor against their free ex-
portation and importation; nor
against the making of contracts pay
able in these notes; nor against the
opening of deposit accounts In these
notes in other banks.
Fourth--In lieu of all taxes, pres
ent and future, either against the
New-York tribune., 1921-11-13
To Reorganize National Leather

BOSTON, Nov. IA proposal 20 re-
organize the financial structure of the
National Leather Company was an
nounced by President George q. Swift
here to-day Because OF serious in
ventory losses. it was stated the COM
amy needs additional capital, which is
% be obtained by the issue of s15,000,-
100 Of preferred stock, par value 500
share. At the same time the common
cock will be reduced by cancellation of
$50 900 shares, leaving 10000 shares
-ith par value of $40 each. Share
olders were notified of special meet
ag at Portland, Me-. on. December to
act on the pruposition.
New-York tribune., 1921-11-13
Prospectus Of Bank

/. The proposition is to organize a
banking corporation with a paid in cap
ital of $1,000, 100000 gold. This bank
should be organized as a sort of Super
corporation that is to say, it would
be better if it were not organized
under the laws of any particular coun-
try Its corporate existence might be
created through the League of Nations
or IN some way that would raise it
above any particular nationality
2. The capital would be $1,000, ,000,-
600 in gold, with power to increase, the
capital being divided into shares of
500 each. Subscription to these shares
would be open to any one able to sub
scribe and pay in gold As America at
the present time holds the predominant
ing stock of free gold, it is presumable
that the bulk of the initial subscrip-
tions would come from that country.
lea should be necessarily the perma-
nent lodgment of the stock, and pro-
visions are proposed under which ali
stock might in the future be purchased
by Europeans. With that in view, the
stock would be issued in two classes
The stock subscribed for by Americans
would be designated stock A That sub
scribed for by Europeans would be des-
ignated stock B. The two stocks would
be absolutely identical in all respects,
except that Class A stock would be
subject to retirement by call at 100
Court Of Trustees
3. The affairs of the corporation
would be controlled by court COM
New-York tribune., 1921-11-13
Examination Provided

Is. A bank wishing to rediscount
commercial paper at the gold reserve
national bank would have to furnish a
satisfactory statement of it's condition
and to submit to periodical examina-
tion by accountants representing the
trustees and would have to furnish
satisfactory information regarding the
credit of corporations, firms or indi-
viduals whose paper was rediscounted.
Evidence would also have to be fur
nished that the rediscounted paper
arose out of legitimate commercial
transactions and that these transac-
tions were of the type known as self
liquidating."
16. The trustees would have power to
direct any gold reserve national bank
to loan any other gold reserve ma
tional bank against collateral deposit
of indorsed commercial paper.
IL. The Gold Reserve Bank of the
United States of Europe would have
power to issue circulating dollar notes
in such form and denominations as the
trustees should designate, and to make
advances of these notes to various gold
reserve national banks against de-
posits of gold or of gold and indorsed
commercial paper. Against advances
VI SlINuidI4IE lOtco lHS IOiQ ocScENe
Bank of the United States of Europe
must always receive a minimum of not
less than 20 per cent of gold, and must
keep good a 20 per cent gold reserve
back of all outstanding notes.
18. The rate of discount fixed by the
governors Of the various gold reserve
national banks must have the approval
of the trustees. 1t would vary at the
different banks, and a progressively
increasing rate might be charged by
the gold reserve national bank to
banks borrowing from it as the amount
of their borrowings increased in pro-
portion to their capital.
New-York tribune., 1921-11-13
derp Would Place Oasis of Gold in Desert of Initiation

posed OF nine trustees, who would be
named in the articles of organization,
i've of these to be Americans and four
to be Europeans. There would also be
nine alternate trustees, similarly riivid-
ed between America and Europe, any
one Of whom might act in the absence
or disability of any trustee, and when
80 acting would have all the powers of
trustee. The aim would be to form
this board of trustees of men Of the
very highest character and widest
financial experience; men who would
rise above even national sclfishness,
and from whom might be expected a
devotion to the general financial re-
Mobilization OF Europe. They would
hold the position for life or until
reaching an age limit. They would
have to free themselves from all other
financial connections, and in the event
of their resignation should agree not
to engage in any banking or financial
business until after an interval of five
years.
4. Vacancies in the board of trus-
tees would be filed comparatively:
that is. the remaining trustees would
elect new trustee, but no new trus-
tee should be elected who was not ap-
proved by majority of the individual
members of the Federal Reserve Board
at Washington.
5. The provision in regard to such
approval by the Federal Reserve Board
at Washington, as we'll as the provision
that five of the nine trustees should
be Americans, would both lapse when
the conditions set forth in Paragraph
2S had been met. The conditions ap-
plying to the trustees would also apply
to the alternate trustees.
6. The trustees should elect a gov
ernor general and deputy governor
general from among their members.
The governor general would preside at
their meetings and perform such du-
ties as the executive head of the
organization as the trustees might
designate. The governor general should,
until the conditions set forth in Para
graph p are met, be citizen of the
United States.
New-York tribune., 1921-11-13

| reserve bank or upon it's circulating
notes, there would be paid to the
government Of the country in which
the gold reserve national bank is
located the profits of the bank, with
such exceptions az are set forth in
Paragraph 10.
IL. In the making of loans and the
receipt Of deposits each gold reserve
national bank would deal solely with
incorporated commercial banks and not
with Individuals. 1t would make loans
only against collateral to an anount
equal to 150 per cent Of the loan made.
The collateral must be short-term
commercial paper, having not over
sixty days, or at most not over ninety
days, to run, arising out Of legitimate
commercial transactions and strictly
OF character known as "self-liquidat-
ing" paper.
l3. "Self-liquidating" paper must be
sharply differentiated from advances
of capital. To illustrate: The ideal
type of "self-liquidating" paper Is a
loan against produce during the period
OF itsstransport from the grower to the
consumer, or soan against raw ma
terial during the process of manu-
facture and until the manufactured
goods are sold, or loan against mer-
chandise that is paid when the mer-
chant markets the merchandise bought
with the proceeds of the loan.
IA. No loans would be made against
stock, bonds or mortgage collaterals
Or against government bonds, but If a
government was engaged in "self-li-
quidating" commercial operations, such
as the purchase of grain for resale to
its nationals, the paper arising out Of
such transaction, hearing the in
dorsement Of bank, might be redis-
counted the same as other commercial
paper, if the transaction were on legiti-
mate commercial lines and the paper
clearly "self-iquidatingo
New-York tribune., 1921-11-13

rica.. Further south Rhodesia and
South Africa are taking up the cultiva-
tion of the fiber In nine years il has
increased from $4,000 pounds to LIS
GOO pounds, while in Zululand, coun-
try almost unknown where the poten-
tlailtles are enormous, cotton growing
has been in progress for some time,
and 1t ls said that at the recent low
prices the crop was profitable.
New-York tribune., 1921-11-13
World institution Suggested to
Finance Trade Resumption
on Extensive Scale
By Frank A. Vanderlip
BERLIN.

IN.
TINE suggestion IN regard hepan form gold reserve bank
for all the countries of herewith presented
has formulated extensive stv
actual conditions twelve countries presented at the Of
considerable number of ns;ns
have asked for suggestion stable
hot presented proposition but as prp
which would countries f
New-York tribune., 1921-11-13
speoloI Dispatch to The rribYns

NEW BEDFORD, Mass. Nov 12.-
With two holidays in New York and
Armistice Day a general holiday that
SO far as trading is concerned extends
through Saturday, the cotton industry
has been quiet in all branches this
week Sales amounting to only 10000
pieces of print cloth in the Fall River
market give an index to the general
inactivity.
Added to the depressing influence
that the holidays have had is the no.
ticeable sag in the cotton market. This
checked trading in the finished goods
markets, conyerters withdrawing in
quiries on the assumption that the
drop in cotton prices will mean a de-
cline III the cost of goods. On the other
hand, the mills have not shown any
inclination to enter the raw cotton
market because OF the price slump, the
initiative IN this respect, brokers hold.
having been destroyed by the holidays.
Prices Turn Losuer
Cotton prices have dropped in most
grades about two cents a pound from
last week. The unexpectedly high GIN
ming report, already exceeding the gov
ernmeHt entire crop estimates. has
only accentuated the deadlock which
has existed between the shippers and
the manufacturers for several weeks,
the effect so far having tnded to
strengthen the position taken by those
mill men who refused to buy in the
face of threatened shortage and even
higher rices. Offerings from the
South are by no means forced, how
ever. The intention of retaining the
extra staple lengths is particularly
strong.
Prices on finished goods are general
ly softer, and for the most part appre-
ciabbiy lower This is true more of
ford. In Fall River the print cloth
lost quarter of cent early in the
week, but regained the amount Wedles-
day and held it.
Some readjustment to existing con-
ditions with the new price lsvels and
more reassuring crop situation is
predicted for the uninterrupted trad
ing which next week will permit
Nevertheless, it cannot be denied that
the movement for improved conditions
which received such a nimpetus in the
cotton industry about two or three
months ago has not been sustained on
a correspondingly wide basis.
A member Of one Of the most con-
servative cloth concerns in New Bed
ford said that the trading at present,
both as regards inquiry and sales, is
much lighter than a month or two ago.
But opposed TO any pessimism that
might be expressed is the fact that the
mills are operating practically at ca
capity thronghout ali the centers. How
conditions have changed was shown by
the action of some mills in running
Armistire Day. Three and four months
ago every holiday was welcomed by
the mills as an opportunity to close
for the entire week
Fall River dividends, the last of
which have been declared, show that
for the final quarter of 1921 they were
The smallest since 1915. The total divi-
dends were $673.e75 On total capi-