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Show BANKERS CAUTION AGAINST INFLATION By J. H. PUELICHER President the American Banker! Association A recent meeting of the Executive Council of tho American Bankers Association, As-sociation, attended ns t wnu hv rrn- 1 1 1 " A- resentatlvo bankers bank-ers from every state In the Un Ion, afforded an excellent opportunity oppor-tunity to get a composite view of the business situation In the nation as a whole. Representatives of agriculture J. H. Puelicher were present at the meeting. Thiy made It clear that the upward treno of affairs In business had not yet reached the farmer and that his posl tion of having to pay a relatively larger price for what he purchases u. compared with that received for what he sells should be given the most thoughtful consideration. There were also preseot r.ten fresh from observing and studying condl tions In Europe. While they lent en couragement to the belief that European Euro-pean affairs are slowly very Blowly righting themselves, there Is In the feeling genera))? depressed by Amerl can bankers a distinct note of caution Questions of the Hour One hears tho questions every where asked: "Are we going to permit per-mit American affairs to ride again into a situation of extreme inflation, which will, as we all know, be fol lowed by another period of depres sion? Had we not better keep busl ness on a normal keel by not going too rapidly? Should not the banker be sounding a note of warning to busl ness men generally to keep their af fairs well in hand?" The charts indicating the trend of ; business show that we are approach-: approach-: ing the high point which followed the ' war. This should be the signal to the ! conservative business man that expansion ex-pansion must be definitely controlled and that reasonable conservatism j should be the order of the day. To many this may appear the pes-I pes-I slmlsm of the banker, but let me say j that the banker Is in a position to I keep his finger on the pulse of our ! economic situation, and when there is j such a consensus on the part of many bankers that we are passing the safe-j safe-j ty point and that we are riding into I another period of Inflation such opin ' ion should not be looked upon as pes simism, but rather as the advice of those whose business can prosper only as there is genera prosperity. The hanking situation in America Is sound and can only be harmed by undue un-due credit expansion. The banker should see that expansion does not again gain tho headway that led us into trouble before, and the business man should do everything possible to support the banker, thus avoiding an other period of costly deflation. |