Evening journal., 1921-03-03
DIR. HJLLIHEN WITH BANKERS
URGES STUDY OF FINANCE
AT DEIA WARE COLLEGE

] (0lltkts
I'VE have such a department, but
IL is inadequately manned, and there
is need of careful consideration OF
| the question OF the amount and
character OF work TO be done in the
/ department TO meet the needs OF ed
ucation. the students. and the state.
Il ask the assistance OF the asso-
citation in the solution OF this prob
/ lem and in furtherance OF the desire
! OF the college to relate itself con-
stantly more closely and more help
/ fully TO the needs OF the State whose
servant II is
Mr.. Hynson. OF Smyrna. discussed
farm credits.
Urges Close Examination.
In his address on the value and
\ importance OF Bank Examination" p"
Walter T. Grosscup. OF the Federal
Reserve Bank. said:
To-day many people are suffering
from a disease which might be call
ed financial dementia-' These peo-
pie are seeking abnormal returns
for their money: they lack the cour-
age and patience required 10 build
lasting fortunes by conservative in
I I Nt~tAlAEnA VI AIEI AumuC ANA HNA AAAA
nent income
Jazz is a popular kind OF music.
but jazz is not confined to music.
The war developed a condition which
seems to have thoroughly jazzed
finance and common reasoning
When there is a lack OF right think
ing disaster lies ahead. Money was
easily made and credit freely Sc
cured; this brought about a condi-
tion which made for shameless
waste. This. however, is in process
Of correction by reason OF the sue
cess attendant upon the national
campaign OF thrift, but care must
be exercised TO see that the pendu-
lum does not swing too far the other
way and endanger business stability.
AS a result Of war prosperity, ac-
cumulated reserves have enabled
many business enterprises to
weather the big fall in commodities
without being wrecked. But these
times OF large inventories, falling
prices and labor unrest make it very
necessary for bankers to steer a
straight and conservative course
through correct banking practice.
"The period Of re-adjustment.
which the world is now experiencing,
has placed upon the shoulders Of
bank supervising authorities a no
uncertain responsibility and obliga-
tion. It is theirs to see that inde-
fensible banking methods and dan
gerous banking practices are Grad
icated. Any attempt TO treat this
responsibility in light manner
should be looked upon as a default
ed obligation to the many thousand
persons who have shown their
= faith in the country's banking sys-
TEN by depositing millions OF dollars
Of money. The public regards bank
] examinations and bank supervision
. in the light OF an additional safe
guard for the conservative handling
OF funds which are left on deposit
in the banks"
In arriving at the value OF line
OF credit, a bank examiner, said Mr..
Brosscup. must take into consider
alton the moral responsibility Of bor-
rowers, the financial statement
which should show reasonable
amount Of quick assets over current
Liabilities, trade references and the
amount OF average balance main
tained with the bank.
Mr.. Hogg. vice. president OF the
, Corn Exchange National Bank, Of
) Philadelphia. covered both hemi.
t spheres in his talk on investment oi
e surplus. saying in part:
] Values. after all, are purely rela.
3 tive. A few years ago the present
e prices OF bonds would have looked
e too good to be true. while the pres
81 ent prices OF commodities woult
4 have seemed like a bad dream. Ye
the banker Is in a peculiarly advan
I tageous position to study values II,
2 has close contact with all markets
{ and a still wider contact through HI
% city correspondents. Indeed. he mus
e be a banker, a philosopher, a DO
{ liucal economist, a merchandizer.
n manufacturer and a farmer al
y rolled into one single personality /
e he is TO properly serve his institu
4 ton and the community; and hi
y range OF vision must, in a sense
cover the whole world For verify,
L ie clearer now than it ever was in ou
Il history that the United States can
y AAWA i've AiA0 AArNNA nAUUts
e Nor can the state OF Deiawar
- live unto itself alone The sun neve
e sets on Wilmington's diversified prod
a ucts. In the second year OF the wa
l. one Of the machine tool makers
= Wilmington had a visit from the Di
rector OF Railways OF the Dutch Eas
It Indies, a country situated on the OF
a posite side OF the earth. Down /
i- the remote parts Of South Americs
j. our Mr.. Chandler found goods fror
lie your own town OF Dover. and Will
n Delaware has no very large cities, a
Ie do some other states. she is never
sr theless just as firmly entwinec Wit
n the worlds markets as is any on
l. OF the largest OF our banks or indus
10 trial commemorative.
World in Bad Plight
you say, how can all this affe,
J. the value OF securities? My friend
ie take a look at the exchanges OF IN
r world and then ask yourself this
a, question. Do you know that n
he United States. Japan and Mexico al
v the only countries which remain O
~ a gold basis, that the terrific drop
he the price OF silver has dislocated IN
ot exchanges OF the east. and has Il
IL the time being ruined our trade wit
d that part OF the world, while Ger
e. tral Europe, as we all know, is vii
ss tually bankrupt; Russia and tn;
e, part OF the world is isolated; Franc
" Italy and Germany are piling del
l. on debt, and large part OF Sout
rs America is in the throes OF sever
lg business and financial depression.
Df ITO quote from an English pap,
1 | u meant Ialn. lrhn l. ....n