Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-30
W|GG|N FORECASTS
GAIN IN BUSINESS
Banker Expects Substantial
Improvement-Doubts Per-
manent Sterilization.
BY the Associated Press.

BY the Associated Press.
A substantial improvement in bust
ness conditions was forecast today by
Albert H. Wiggin, New York banker.
Questioned by chairman LaFollette
of the Senate Manufacturers Com
mittee. the Chase National Bank off,
cial said recovery abroad was essential
to domestic recovery and that while
American export trade amounted to
only 10 per cent of production this
was IAN enormous value"
1T is the last 10 per cent that makes
business profitable or Improbable he
added
I'VE are going to get an improvement
here" he said, adding he believed the
betterment would be substantial.
Wiggin saw little prospect of perma-
nent sterilization of industry through
artificial processes. He said I'VE are
always going to have difficulties and
there isn't any commission or brain
that can stop it."
Little Help From Idea Seen.
He said he was not opposed to Gre
alton of national economic council to
keep industry on a steady plane, but
thought it could help little.
Wiggin said regulation Of interest
rates by banks might bring about
sterilization to a certain extent, but
added:
"A manufacturer keeps on manufac-
turing as long as he can make a profit
He cannot see ahead far enough to stop
production as long as there Is a de-
mand"
Chairman La Toilette asked Wiggin
if business had learned anything from
experiences of the last two years which
would assist in preventing similar dis
turbances in the future.
I'VE have learned something, but we
all forget very quickly" the banker re-
piled. The next generation will forget
our experiences. Nothing will prevent
a recurrence of business troubles"
Confines Testimony to Replies.
Gould we have maintained the pace
we were setting in 1929" La Toilette
asked, ''if external factors outside of the
United States had not come into play?"
Il don't think So" Wiggin replied.
The banker volunteered little, confin-
ing mis- testimony to brief answers to
La Toilette. He agreed the speculative
activity of 1929 had aggravated the
present situation
DO you feel the policy of investment
banking institutions had any part in
the excessive speculation that took
place prior to the depression" the
chairman asked.
'Of course, speculation was in the
air and there was demand for invest
ment securities. Bankers supplied that
demand. I don't know who to blame,
the fellow wanting to buy or the fellow
wanting to SELL"
The witness and the committee
chairman argued about the responsible
1ty of bankers for the speculative boom
and La Toilette finally asked If the
profits bankers made had any influence
on their conduct in floating issues Of
securities.
Farrell and Myer Heard.
Undoubtedly the bankers did bust
ness at profit" Wiggin replied. But
no banker intends to offer securities
that aren't going to be absorbed. 1
don't think you can Justify holding
bankers responsible for the wild specu-
lative craze. They were trying to sup
ply what the customers wanted"
!, Wiggin reiterated testimony given be-
fore Senate banking subcommittee last
year in blaming high tariffs and low
interest rates largely for present con-
ditions.
Wiggin read to the committee a state
ment from the Chase Economic Bulle-
tin opposing attempts to control eco
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