The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-02-05
BROKERS HONOR
HEAD OF EXCHANGE
William H. Remick Praised
for Management in Recent
Adverse Months.
OPTIMISM THE KEYNOTE
James A. Alexander Believes
SOunder Conditions Are
Being Established.

Admission that in the last month OF
1920 Wall Street passed through the
most critical time the Stock Exchange
probably ever experienced" was made
last night u, Charles A. Morse. presi-
dent of the Association of Stock Elk
change Firms at the annual dinner OF
the organization in the grand ballroom
of the Hotel Astor.
Mr.. Morse made brief mention of the
crisis in words more frank than any
other financier ventured to use, In In
PRODUCING William II. Remick, president
of the New York Stock Exchange. His
statement was heard in silence by the
500 or 900 brokers present and no other
speaker. including Mr.. Remick himself.
made further reference to II.
IF ii had not been that Mr. Remick
was in the right spot at precisely the
right moment, there would have been a
financial catastrophe in Wall Street,
which would have spread to La Sale
street. Chestnut street. Smithfleld street,
and, in fact. to Main street. and you all
know what that means" Mr. Morse said
I'VE were fortunate in having at the
head of the Stock Exchange a man like
Mr.. Remick in the most critical time the
Exchange in all probability ever expert
enced"
Heading for Prosperity.
Mr.. Morse, Mr. Remick. James S.
Alexander, president of the National
Bank of Commerce in New York, and
other speakers all made It plain, how
ever that the country now Is heading
straight for prosperity Not a pessi-
mistic note was sounded during the din
ner. and those on the floor. as we'll as
those on the speakers dais, all saw
nothing but Improvement in the financial
situation ahead.
Mr.. Alexander declared that America
does not need boom period to be
prosperous and that the substantial fac
tors of our national wealth will even
tually bring about adequate revival OF
industry and commerce. AS Mr.. Alex
ander is a director of the Federal Re-
serve Bank. as well as president Of the
National Bank of Commerce. the
brokers listened to his words as coming
from a doubly authoritative source.
There are at present a number OF
great business forces clearly at work
building a sound business structure for
1921, said Mr.. Alexander. Supply and
prices are becoming broadly coordi-
mated to demand. The Improvement in
the liquidity of credit, which is now In
progress, must develop further. but
there are signs that improvement there
will continue. AS these movements are
fulfilled, as wages and labor are re-
aligned to new conditions and as bust
ness finally absorbs the losses incident
to deflation. Sterilization on the new
level will become an accomplished
fact
The banker said that 1921 must be
Judged not so much by volume of bust
ness that will be accomplished in It, but
ny the sounder conditions which will pre-.
vail Business. he declared. cannot idly
wait for the public to resume active buy
ing. but must stimulate buying 'by es-
tablishing a wide prevalence of substan-
italy reudced prices for goods which
must be based on increased efficiency in
production and distribution. and the
acceptance of reasonable margins of
Profits"
Labor Growing Efficient.
The growing efficiency of labor and a
willingness to accept reduced wages were
pointed out as most encouraging circum-
stances. At the same time Mr.. Alexan-
der declared, employers must play fair
and not attempt to lower wages unduly.
In speaking of foreign trade, he said
that a recession should not cause alarm
if it represents a movement of interna-
tional trade toward more normal re-
lationshps
1--WE might we'll view with anxiety any
movement toward financing foreign COM
merce on terms tending to perpetuate or
aggravate conditions of over expansion
or non-liquidity in our business structure.
Foreign trade should be adequately
financed where there is a real economic
need for It, but there should be no eff
fort to extend Americas creditor POSI-
tion beyond the point of reasonable con-
fidence that the credits can ultimately be
liquidated."
In his brief address Mr.. Remick spoke
of the injustice of the fact that loans
secured by collateral of stock or bonds
should not be rediscountable at the
Federal Reserve Bank because they were
not liquid
ut is quite true that unlike silk, or
wool. or cotton and many other COM
modities. securities are not consumed
or worn out, but they are gradually
retired from the market and the loan
accounts and disappear quite as
effectually through the investment Of the
savings OF the people," he said. The
past year. he declared. has demon
strated that stock loans are quite as
LIQUID as those on wool, silk or other
commodities
why should the plain unsecured
promise TO pay of a corporation be more
acceptable at the Federal Reserve Bank
for redscount than note of firm of
undoubted credit secured by the same
corporations mortgage obligation,
pledged at 20 or rs per cent. of Its face
vaue?" he asked.
With the dinner was combined the an
nual meeting OF the organization. An
drew ]. Miller of Bolssevain & Co. was
unanimously elected president, to sue
coed Mr. Morse. other officers elected
were: Vice-president. Arthur Myles of
Moore n Schley; treasurer. Jules =.
Bache Of j. s. Bache & Co.; governors.
George NJ. Woolsey, Bernon s. Prentice.