The daily banner. (Cambridge, Md.) 1897-2008, 1921-08-05

Nothing but the realization by
Congress that the CHER cause pro-
longing the present business depres-
sion is it's own inaction regarding
taxation and reduction of Govern
ment expenditures will save TINS
country from a real calamity TINS
winter"
This assertion was made today by
Elliott c. McDougal, president oil the
State bank section of the American
Bankers Association, in an address
before the twentieth convention OF
the National Association of Super
yisors of State Banks which yester-
day opened three-day convention
at the Bellevue-Stratford.
Mr.. McDougal urged the pressure
be brought to bear on Congress to
stand squarely behind president
Harding and Secretary of the Treasu-
ry Mellon in their fight for tax legls-
lation: said the present Industrial
crisis is ude largely to mlsmanage-
ment of Governmental bureaus DUR
ing the war; urged labor to refrain
from striking when it cannot win,
and advised every working man to
save every cent before next winter.
Mr.. McDOugal SAID, IN part.
ITO continue to turn out at eN-
cessively high cost goods. produced
on a basis of not more than 81 per
cent. efficiency of production, and to
sell them to one another, does not
make this countrySrich. TO grow IN
wealth we must produce as much as
possible, as cheaply as possible, use
no more than we actually need, and
sell the surplus to the world. Inc
purchasing power of the world is
much less than formerly. Europe
cannot pay cash for our goods. we
must either trust its buyers, ana sell
them our goods on long credits, U
we must take Their goods In eX-
change.
There still is much liquidation to
be accomplished, although it would
appear that in number of lines Tuli
liquidation has been accomplished
and prices have gotten to as low a
point as can be expected. perhaps
if would be too much to expect that
all commodities shall be fairly ma
ioritv are so liquidated and the pub
lie is so convinced, and when our
burdensome taxes have been materl-
ally lightened, then. and not TILL
then. may we look for genuine re-
vival of business.
Reimbursement of prices must be
radical and complete. In some COM
modities, of which copper, cotton,
hides and rubber are conspicuous ex-
amples, it is practically complete. In
many others, such as farm imple-
ments. fertilizers, building materials,
house furnishings and especially III
the cost of building construction, II
is only. begun. One of the last re-
adjustments will be that OF labor.
In times like these many Dor
rowers cannot pay the principal, OF
even any part of the principal OF
their debts Should such borrowers
be sound should their banks be con-
vinced that they are doing their best,
that if not pressed they could pay
their interest regularly and carry on
business until times improve, but
that if they were asked to repay any
considerable part of their principal
they could not do so but must go in
to bankruptcy, it plainly would be
wise to carry them through. Then
when good times came they gradual
" could pay off the principal.
1T is not putting it any too
strongly to say that bank which
during these times, forced into bank
ruptcy business, which otherwise
would live commits unnecessary ii
nancial murder A bankers frs
and highest duty now is not to make
large profits for stockholders, bu1tc
keep business alive.
This does not mean that banks
should carry spectators. Neither
does it mean that a business mar
must not be forced to liquidate toe
rapidly, and that his bank should no
cripple him by Selling the proceeds
of liquidation, but should allow sucf
proceeds to remain in the bushes:
if necessary. -Phila Evening BuIle
tin.