Show traylor finds too much silence responsible for business slump chicago banker traces crash to failure of leaders to give warnings danger 0 signals signild 0 diere disregarded 0 added speaking before the international chamber ot of commerce at washington melvin A traylor president ot of the first national bank ot of chicago s si id in part business management however Is not alone responsible tor for the course it has followed unfortunately it has had the cooperation of finance and government and will likewise have to have their cooperation in adjusting its affairs to a saner course what in tact fact did the leaders ot of finance do to encourage the expansion melvin traylor which took place in the last decade what it if anything did they do to pro prevent such expansion with the consequences which they certainly lid did know or should have known would follow I 1 believe their record in that connection is not an enviable one As early as 1927 27 it was clearly obvious to anyone having experience with the granting ol of credit that it if the situation was allowed to continue and it if expansion and speculation were carried on unchecked there could be but one end disaster yet the record of american financial leadership and ot of responsible government officials was regrettably one ot of too much silence sounded few warnings few warnings were issued and few attempts were made mada to attract public attention to the danger that threatened credit tor for the expansion ol of productive facilities to meet temporary demands was granted to business without adequate consideration of the consequences credit without stint was furnished to consumers to buy consumable goods thereby further increasing false purchasing power and multiplying debt no one called a halt every kind and character ot of combination and consolidation was made regardless of its economic advisability or the possibility of economies in management or increased profits there from little or no consideration was given to the nature of the businesses involved in one instance tor for example soaps and candles candies were united such combinations and mergers were promoted and securities were sold on the theory that temporary earnings derived from a false demand would not only continue but would forever increase furthermore these securities were not sold to those in a position to buy or who could buy tor for investment purposes but rather to those less leas able to buy to men and women fascinated by high powered salesmanship and an inborn desire to gamble tor for big profits was such financial leadership calculated to inspire confidence or make tor for an economic stability which insures social welfare I 1 am afraid not but financial leadership did not stop there it actively promoted the purchase of equity stocks and split its own unit of stock par in order as it said to bring its market values within the reach of the small investor may I 1 add parenthetically that such action would have been unnecessary tor for their purpose had they waited only a few months financial leaders organized sed and promoted so called investment trusts to give the small investor a chance to profit from wise financial leadership made foreign loans ot of speculative value and altogether followed the procession obviously intent upon getting theirs while the getting was good must chart new course are we to have a repetition of 0 this kind of financial leadership it it be truo true as I 1 believe it is that credit Is the lifeblood life blood of the nation and that there can be no economic stability or social progress without a sound financial structure and it it be true as I 1 also believe that no financial system Is sounder or more useful than its management then financial leadership in this country must take stock of itself turn over a new leaf and chart a new course ot of conduct for its future guidance it if it be objected that not all financial leaders are guilty ot of such misconduct and certainly there are some who are not the indictment nevertheless th eless stands As tar far as the record record discloses not one had bad the courage to fight in the open against the tendencies he knew were wrong and to demand a right about tace face knowledge is one ona thing but courage ot of leadership Is another |