The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-06-11
FINANCE|
AND
BUSINESS I'm

More of New Yorks speculative
bankers have had their nngers--and
their reputations-scorch by play
ing with hre. Get-rich-quick schemes
were gsily embarked upon by vari-
Gus prominent bankers during the
delirious war boom. They used their
own money and also. sometimes. the
money of others. The reckoning has
been severe. Some daring specu-
lators who made millions on paper
now nnd themselves very much
poorer both In pocket and reputation.
Shortcuts to millionairedom are
| dangerous, even these expert imam
ciers have discovered.
That was a bad "bloomer" Secre-
tsry Mellon made when he announced
recently that sterling and francs and
marks would advance. Since then
foreign exchange has tumbled dis
| Astrously. The losses of certain in
| situations and individual operators
| have been terrific. The exchange
| market has at times been so 'thin"
this month that bankers familiar
with the situation have been afraid
OF grave developments.
lnasmuch as the receivers of Ger
man indemnity payments insist upon
L
American dollars, the outlook for
European exchanges is not inspiring.
There Is really no mystery as to
why the allies should demand dol
| lars: dollars are the currency all of
them need most badly at present and
| will continue to need for long time
to come.
TITS an III wind" One exporter re-
| Gently booked a big expor. order for
steel at specified price. The de-
cline In prices already gives him an
| extra profit Of 500. 900, and as he
doesn't have to make shipment for
another month. he figures that be
will be able to cover at a net proit
Of $3.50. 0OO
IL another reduction in steel 10 In
eyitable. the sooner IL is made the
quicker will the steel business--and
other industries-recover; provided
that Ia, the cut IL so substantial that
everybody accepts IL as marking alb
solutely bottom prices no matter how
dull business may remain.
As the Steel Corporations unified
orders are nearing the danger line
100000 tons - action may not be
long delayed.
According to Judge Gary-s recent
prices would mean further cutting OF
wages.
There are at least half . dosen
very prominent veteran presidents in
this country who have earned a rest
whach they ought to take and make
room for younger and more progress
sive men, One very notable retire.
ment will shortly become necessary,
even though the gentleman concern
ed doesn't seem to realize it The
directors do.
One Washington SCION sought to
make fun OF President Harding's Sc
lection OF A ID. Lasker as chairman
OF the Shipping Board. He spoke of
the great descent from brains to
beans" referring to the caliber of
men the President had previously
asked to accept the post and to the
fact that Mr. Lasker, among other
interests had been Identified with
Van Camps. The other two men con-
sidered by the President were inter
ested in steel and oil. respectively. To
the layman IL isn't quite evident why
II should take 20 very much more
brains to rus steel plants or oil
plants than to run large foodstuffs
plant successfully. Some of our law
makers would render more useful
service to the country filling soup
cans or pork and beans cans than
| trying to fin the statute books with
their fantastic legislative proposals..
l happen to know Lasker, and you
can be assured that his batting aver
age is very high. He may know little
about ships but he knows a lot about
distributing and selling merchandise.
He ought to make an excellent gen
erai manager of Americas export
business. And chats what we need
more than an expert sailorman-
The Administration Is teaching
other nations to have respect for the
United States Government and for the
Legitimate interests of American citi-
zans in foreign countries. Secretary
lit ghes' communications have the
right ring. He doesn't tell American
financial and Industrial leaders that
they should keep out OF foreign mar
kets or submit to any indignities and
injustice foreign governments may
care to subject them to, a la Mr..
E,ysn when Secretary OF State The
| ! ritish government manfully backs
III British business enterprise in for
ejen lands, with the result that they
receive decent treatment. Our Gov
eminent need only follow this ex-
ample.
The practices of certain presidents
cf savings institutions and insurance
companies are revealed to have been
worse than anything ever alleged
against decent pawnbrokers. To
compel borrowers to buy junk real
estate they had no use for, in order
| I, obtain loans, was and is abso-
mtely indefensible. The astonishing
thing is that those who were guilty
of such tactics don't seem to realize
that they ought to be ashamed of
themselves. Is It to be wondered at
HAT the rank and die of the people
often declare that High Finance and
Zig Business are rotten7
business, what crimes are COM
uitted in thy name!
The truth is that business can be
conducted as ethically as Christian
Ity. More IT pays in the end to con-
Cuct IL that way,
More power to the probers!