The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-10-19
OSTRICH POLICY
S0UNDLY FLAYED
Banks Should Let Public
in On 1t When Money
Is Unstable
ESQ BANKERS ATTEND
Group Session Of S. w Il. G.
at County Club Draws
Large Gathering


Tn.rc mo tg,o WAYS Son which
hauA,r4 uf thla country can Hul
ought ~ ald lu tho HtIbIllIilou NJ
money. Irving rIshcr professor ~
ccuupmiyg bt Yale univrrHty. tpld
bnul,tH uf fhr southwest at tho
rruup meeting luncheon nt ih"
Country club Wednesday noon
Banks ought tn ho moro courageous
ln HdIustiug tholr ratios of interest.
Fisher said They should not be
afraid to raiao them when n u
necessary tn raise them ana they
should be equally prompt In redu,-
ing them whom conditions warrant
Imitation. declared tho econUmi0t.
is not a cure for dctlltion nor r. de-
flotlnn cure for initiation. Hoih
Oro.c,ilc md thcy should be- crndlcat-
I'd hy siuhi" money Bankers. FISHER
are pruuo 10 mako tho two grcot
mistakes that they made lust after
tho war. making money plentiful
when II ought not 10 he plentiu.
and scarce when II ought not 10 he
scarce Ranks have fought shy of
this business Of Ftahili1ltion of
money thus far hc asserted, but he
believes thnt Il is duty they owe
90 tho public 10 so organize public
opinion that rrpotitlOn of tho infln-
tiOn and dcflation of tho dollar ana
invariably nf prices may not he re-
peat'd They should wor% with tho
government on this prorosiion.
l,nnkcr's nuiy 30 puh'ic.
Referring to the statement made
by Governor Harding Of the fod
crai reserve board In denying detln-
tlon was made FOR tho purpose Or
bringing down prices. hut that "
wns for tho purpose Of retaining the
gulvcuCv OF banks and that II was
tho business NJ the hoard 10 keep
the banks solvent and not "a bring
down prices. Tlshor declared that In
one statement he was right. In tho
other wrong. II II possible. he snid
for every banker TO realize hls duty
towards the public In the stabiliza-
tlnn Of money ana therefore ~
prices. as we'll M In retaining the
eolvency OF banks and this renliln-
tlnn he deems necessary before one
Of the greatest economic evils Of the
tlmos. tho fluctuatlng value ot tho
dollar. is done away with.
Referring To ructuatinG prices.
the economist said that the reason
farmers. oil men and business men
have found themselves In such dltfl-
culiics is because the prices of their
debts remained the spmo. The rise
in prices. due to initiation of credit,
was phenomenon to oconunlatf
because OF the fact that II TOOK tho
war 10 bring out the fact that bank
credit was not n factor, where 100
years ago tho only standards o'
measurement were gold. silver ana
papor. Rise In pricer. caused hy in
flation of credit. was the real rea
he nf n
the real rrnson for depression or
TRADE. II ~ Tor the banker 20 go
regulate credit that such Initiation
always followed by dcfl0tlOn. may
not he rcuoated again.
Pans the "Ostrich Policy"
Fisher does not agree with those
bankers who believe that unstable
money should not ho tnlked about
for fear Of the effect such talk
mirht have on tho public mind.
THAT" said Fisher. rs an ostrich
policy"
lie maintains that unstable money
is an OWL, should be recognized hV
the public as an cvll and should be
slammed out under tho leadership oi
the bankers the one class In this
country most cmiucntly fitted tor
the task. with the cooperation OF
the government,
IT llt tNllUlNU ifRilFt Nv w
clarcd understood tho grent harm
that liz done by the instability oI
money there would be riots.'
There we're approximately sbf
bnulJcrs from oil parts OF tho coun
try here FOR tho southwestern Rusl
ness congress who gathered at tn
Country club for tho luncheon. n
r. Gilbert presiding, introduce,
John q. Lougsdnle. president OF the
81 Louis National bank of Com
ncrco. who declined 20 sneak, pre-
ttrrlng to give himself and tho othe
bankers longer time Ia which q
listen 10 Fisher
Scnotor Robert T. owen, who's
very brief talk was OF an introduc
durtory nature. anticipating Fisher
speech said:
"The great need ~ banks today 8
stability For with stability Nnlu
created hy the luhuriug man are n
more oquitnbly distributed