The Washington times., 1928-01-14

Some 20 so far as to advocate
raising the 81 per cent redis-
count rate. Others regard go
drastic q, step as not called Tor
thus far, but are agreeable that
word of caution be issued.
Events during the next few
weeks will determine Just what
action, if any. Federal Reserve
authorities will take. Should
loans contract. well and good.
Should expansion continue. then
expect either an official warn
ing or an advance in the re-
discount rate.
Scared OF Market
"I never like to see my loans
70 above $4,000, oO0." the head
OF one stock exchange house
told me this week, "but they
have gone up to $17.O0O.OoO. ]
have been turning down orders
right and left to buy stocks
on margin. I don't care to carry
the responsibility OF so many
millions OF loans after so long
continued a bull market. I'm
scared OF the market myself
and I simply won't 20 on Dor
rowing more and more money.
You win find other houses
some of them very much bigger
than o1rs-tllat also have reached
their borrowing limits and won't
carry any additional lines Of
stock.
I hear that certain large banks
are now going over their loans
with 4 view to making doubly sure
that they will nots suffer, even
though the whole market sustain
d sudden, drastic relapse. The
highest executives are taking a
hand in this precautionary pro-
cess. More attention is paid to
net earnings and intrinsic values
than to doomed quotations.
In responsible financial circles
President Coolidge's superficial
comment on loan expansion-to
the effect that, while he did not
pretend to be an authority, he
didn't see any reason for uneasi-
ness-is looked upon as most UNI
fortunate, ill-advised and wholly
uncalled FOR. This attitude is taken
notwithstanding frank acknowl-
edgement taat the Government is
interested in maintaining conf.
dence in easy money prospects be-
cause of It's important refunding
operations.
THE less washington projects
itself into any phase Of the money
market or banking, the better
from every point Of view" de-
clares responsible financial judy
ment.
No Objection to Quiz
owen d. Young's declaration
that his company, General Electric,
hasn't the slightest objection to a
congressional investigation into
the utility industry, provided Il "be
specific and nonpolitiea, and have
for its object fair and fun disclo-
sure Of the facts" typifies the at
titude of present.day progressive
American business leaders. Ali
they ask is fair play. The electric
light and power industry claims
that it has given customers and
the public at large fair play, and
1t feels that it, in turn. Is entitled
to fair play at the hands Of politi-
clans.
Nothing has developed nothing
is within sight, to justify holders
of utility securities becoming acute.
~ alarmed. Personally, / know
no class Of modern business lead.
ers who take a fairer, broader
view than the great majority of
the brainy men who have contrib
uted so much to place the United
States in the vanguard as an in
dustrial nation capable OF holding
its own against the competition
OF the rest Of the world. There
fore, / for one do not believe any
diwespread crookedness will be
unearthed.
Ford Didn't Know
Henry Ford didn't even know
that John N. WHY'S and w. c.
Durant had named prices as low
as his own! He spends very little
time in keeping posted on the news
OF the day.
Score one more for youth! A
S6.year-old has just been elected
president of one of Americas
$4,000, 900, 600 banks. the Chase
National of New York. 1t be-
came very apparent before young
Robert L. Clarkson reached 80
that he was striding rapidly
toward this high position. Al.
bert H. Wiggin. head OF the
bank, realized that he had made
q rich find" and so brainy
had Clarkson proved that even
the ablest of the men in the
bank recognized that he was
entitled to top rank.
Security Analysis
Like Harold Stanley. the lat
est addition to the firm of J.
p. Morgan and Company, Clark.
son developed extraordinary skill
in analyzing securities and In
arranging the right kind Of new
financing. Al Wiggin now should
be able to slacken somewhat
the strenuous pace he has been
leading since the collapse of
the postwar boom laid troubles
at the doors of so many banks.
The president of Americas
other $1,000 100000 bank--it is
now more than $1,000, 900. 900
hank--Charles r. Mitchell, Is only
so.
Business sentiment--as actually
felt--has become somewhat more
cheerful.
Copyright, 1928. by B. C. Forbes)