Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-16
Traylor and Swope Arouse
Leaders in World of Finance

Financial, industrial and commercial
leaders are declared by the press to
have been called to action by addresses
before the International Chamber Of
Commerce by Melvin A. Traylor, Chi
cago banker, and Gerard Swope, presi-
| dent Of the General Electric Co. Mr..
Traylor's proposed remedies for alleged
| defects in stock dealings are favorably
received, though the changes are be-
1 lieved difficult. Mr.. Swope's advocacy
of unchanged wage standards is ac-
/ cepted as the Judgment Of an expert.
THE country is indebted to Mr.. Tray
| lor for the honesty and courage Of this
confession. which duplicates so many
| Of US" says the New York World-Tele-
/ gram, as 1t reviews the bankers charge
! that "a large measure Of responsibility
| for the present condition rests upon
| the shoulders Of the Nations financial
| leaders" and his words urging specific
| reforms including abolition of the So
called daily settlement" with its daily
! call-money rate; abolition Of floor trad
| ing, which has about 1t most Of the
Characteristic Of plain crap shooting, y
and rules forbidding members of the
| exchange to accept any but cash trades
II the amount involved Is less than
| $4,000.
He does not hesitate to attribute the
! stock market crash to financiers them
| selves" remarks the Albany Evening
| News, recalling that excessive specula-
| ton had seized on the country like A
mania and enveloped thousands who had
! never sDeculated before" That paper,
| however, asks: Would an effort to
| check the epidemic have been a battle
| against human nature? The elements
| Of ambition and greed we're there, but
ambition and greed will always be pres
emit The lesson has been hard, but has
1t been thoroughly learned? Will not
| human nature be eager to try it all
! AGAIN."
1T was one of the most stimulating
| challenges thrown out TO business men
since the depression set upon the coun-
try" according to the Flint Daily Jour-
nal, which records that 1.-The courage of
this banker in criticizing our business
| leadership surprises us" and it offers
the query: rs not the day of enlighten-
ment approaching when a famous in
| ternational banker has the courage to
stand before his colleagues OF the big
business world and criticize their lead
ership?" The Fort Worth Star-Tele-
gram. recognizing in Mr.. Traylor a for
| mer Texan, calls his statement one with
| a great content of stark truth" and
much Of the past years depression re-
suited directly from the confusion of
the privilege Of investing for profit and
| speculation. The other portion of it
came from the failure of financial and
| industrial heads to issue warnings in
advance of the catastrophe. 4"
II his recommendations are not q cure
all, they will remedy so much OF the
cause Of the ailment that the remainder
mill
| before OF recovery by natural processes I"
With tribute to both Mr.. Traylor
! and Secretary Mellon for analyses of
the situation, the Chicago Daily Tribune
| holds that reliance upon Government
and political nostrums will not bring
back our normal prosperity" and con-
t1nues: AS to the cause of our ills, it
is advisable to realize and to remember
that while very large part Of our pub
lie must share responsibility for the
excess which brought about the collapse,
| a greater share rests upon the shout
| ders of the financial and business lead
ership of the country. Mr.. Traylor en-
| phasizes the role of the speculative
| agencies, the exchanges, put the Gov
eminent, the great banking interests.
the corporations which, seeking maxi
mum profits, loaned reserves for specu-
lation and expanded with too little re-
saEu 10 eCoLloInIc laws, IalleQ In their
| function of larger control and guidance
We all contributed to our own punish
ment. The Tribune believes that IAN
important factor in economic restore-
| ton Is as much relief as we can contrive
TO get from the mounting burden of
/ public expenditure" The Detroit Free
Press holds that Mr. Traylor makes
out good case for elevating trading on
the floor to plane higher than crap
shooting"
Endorsement is given by the Hous-
ton Chronicle to "his suggestion that
some authoritative control over credit
be est5 olished, IN order that money
needed in the business Of the Nation