The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-05-05
Us. FINANC|ERS LASHED
BY CHICAGO BANKER FOR
LONG DEPRESSION WAVE
Leaders Are Denounced for
Failure to Warn Public
of Market Crash.
ASSAILED AS EDWARDS
Business Policies Dictated
by Stupidity and Greed,
Asserts TrayIor.
By THOMAS L. STOKES
United Press STAFF Correspondsnt

w AO11lNO YIN, Mdy D.
A scathing Indictment of
American financial leaders by
one of their own number for
their policy leading up to the
depression, and suggestions
for revision of inter-allied war
debts by two outstanding
European figures, turned the
international Chamber of
Commerce convention today
into the field of controversy.
Melvin A. Traylor, Chicago bank
er and international financial ex-
pert, denounced financial leaders
for failing to warn the public when
they knew the stock market crash
was coming, and for permitting the
boom period to go unchecked when
they knew where it was headed.
I'VE have not failed because of
ignorance of economic theories, but
because of our utter disregard and
defiance of all economic laws" he
declared, accusing financial leaders
of a lack of courage to face the
facts.
Greed Is Blamed
ambition, stupidity and greed
have dictated policies, and trouble
has been the result" he declared.
Taylor also included government
officials in his indictment, saying
that both they and financial lead
ers knew as early as 1927 that UNI
checked expansion and speculation
could lead only to disaster" yet the
record of American financial lead
ership and Of responsible govern
ment officials was regrettably one
Of too much silence.
Few warnings were issued, and
few attempts made to attract public
attention to the danger that threat
ened," he said.
"As far as the record discloses,
not one had the courage to fight in
the open against the tendencies he
knew were wrong and to demand a
right-about face. knowledge is one
thing, but courage of leadership is
another.
1T is tragedy when in a world of
plenty there should be so much
poverty, and when, in nation
which boasts of its riches, five mil
lion or more people willing to work,
should be unable to find employ
ment.
1T is challenge to the world,
and especially to American busi-
ness and political leadership, which
can not be ignored and must not
be shirked."
Traylor urged three forms in
stock market practice-abolition of
the so-caled daily settlement" and
substitution of periodic settlement.
for better regulation of the flow and
rate of credit; abolition of floor
trading, which he said has about it
most Of the characteristics of crap
shooting, and prohibition of trading
on any other than cash basis in
amounts less than $4,000.
Farmers 'Lied About
Touching the agricultural prob
lem, the Chicago banker said the
American farmer "has been lied to
and lied about" more than anv one
else, and deplored various forms of
relief legislation which he said have
been detrimental to the farmers,
welfare"
The farmer, he said, has a lust
right to complain when he sees five
or six million unemployed behind
the supposed protection of tariff
barriers and sees foreign trade bar
rlers raised against him.
mo one, not even the farmer
himself, would advocate the aboli-
zion OF reasonable protection for in.
oustry," Traylor said, "but a virtue
ceased to be virtue when its oper-
atoms destroy economic opportunity
and social equality"
The war debt question was
brought up by two leading foreign
delegates, both of whom suggested
that revision all around might lead
the way back to economic recovery.
Would Cancel War Debts
Ihese speakers were Alberto Pi-
reul, Italian industralist, who pre-
sented a synopsis of reports
gathered by experts on all phases
OF United States and European
financial and commercial relations.
and Sir Alan @. Anderson, director
Of the Bank of England.
Would it perhaps be better to
cancel international debts of polit-
zeal origin?" Anderson asked. "Great
Britain, as the largest war creditor.
cancelled a great surplus of debts
owing to her, and the debtor ma
tons would vote for extension of
this policy, but the creditor finds it
hard to accept as impartial the ad-
vice Of the debtor to forgive him
what he owes"