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, N.H., FRIdSTTAPRIL 29, 1921, AT 8

^he banker, who comes to N0W E ngian(i - o preach banking
ethics and practice, will, if he be wise, come with uncovered head,
as one would approach a shrine; with bare feet, as the devotees of some
religions enter their sacred places,

H0 i ^ n he yet wiser if, having

in mind the ^ew England habit of thrift and "getting on", he comes with
his pockets empty,

^ith such precautions, he may hope to give no

offence, to have no available assets abstracted from his person, and
perchance even to get away with something more than he brought,

have all been coming for generations to you of

®ew England for the financial support, the ready cash, the loans on call
and mortgage, that have meant opportunity for other sections to build,
develop, grow,

^ipi^ng in one of his poems of tribute to the British

Empire as a whole, apostrophises England as "the power-house of the
line", the center whence radiate the skill, wisdom, management,
financial authority and economic strength that make possible the
maintenance of that world-flung community,

S0 I venture to apostrophize

New E ngiand as our "power-house of the line", the reservoir of sense,
saving, thrift, conservatism and enterprise from which we have been
accustomed to draw for the finaneing and direction of enterprise

Eor^ after all, you of N0W Engian(j have earned altogether

too much repute for conservatism, and too little for enterprise.


At a time like the present, when, on a nation-wife scale,
we have need for the most judicious admixture of conservatism and
enterprise, of holding back and pressing forward, of proper economy
and reasonable willingness to spend, of moderation and audacity, it is
good to come to talk to a gathering of New England financiers, who, one
feels very certain, will know just what is meant by such a juxtaposition
of opposites.

S0 I come to you as one who would learn, rather than teach;

seeking to learn your lesson rather than to teach you any of mine,

*t is my

most earnest wish that you may all believe me to bo very sincere when.I
say this, for in the difficult position to which * have been called under
the new administration, * find every day the need for the New England
sort of support,

are times when people in relations to finance

don't feel at all sure of needing that sort of thing.

* can say to you,

with a good deal of confidence, that just at present the New England
financial idea is standing extremely well with ths counti'y.


possession of available, movable, liquid resources entitles the holder
nowadays not only to our distinguished consideration, but to a going
cent per cent that is the most substantial testimony to our eminent
have a way, in this country, of turning to N©w Engiand
for credit, in times like the present, of the sort that is solid
without being too solid,

^ou of the down-east tradition have repute for


avoiding extremes; for being a bit cold, but always avoiding t h a t •
excesses of coolth that would imply frozen credits.


large, we are

suffering from severe chilblains in the credit department, but I take
some satisfaction in saying to you that we see good signs ahead;
we are coming into the stage in which we are beginning to rub snow
on the frozen members in order to avoid the discomforts of too rapid
^ours is an industrial and financial community, and it
has suffered with the rest in the recent period of depression.

®ut you

have the substance of real wealth, the wisdom of long experience, the
background of sound policies,

^here has never been much of sympathy

among you for programs of extremism.

there be still 3ome who

view with concern the seemingly disproportionate influence of
®ew England in the national councils, both business and political,
* think i can suggest some considerations that may explain your
potentiality without doing great discredit to either your business
men or your politicians.


after the revolution, there were

those who insisted that the debts of the war for independence could
never be paid and would better be repudiated at once,
firm for keeping the national credit good,

England stood

^hen the same issue rose

after the civil war, you voted no to every proposal of scaling or
shirking the national debt*

^hen greenbackism, still later, held forth its



promise of prosperity by fiat, you told us that prosperity did not come
by that route; that it was to be had only by saving, and plain living, and

^hen the same proposal, diluted somewhat into the free

silver program, came still later, you stood as a rock for sound money,


record is sound, and you are entitled now to the recognition which,
as a middle westerner and a democrat of the old-fashioned sound-money
faith, I am glad to bring to you.
So, with all assurance that ®ew Engian(j

understand and

hold by the faith of sound money and soun$ business, ^ come with a
message of good cheer on behalf of the rest of the country,

Bugin0s 3

conditions are improved and improving, and * want you to be assured
that those of us who have seme responsibilities in administering the
government's relations to banking and finance on the national scale
are determined to make common cause with you who are carrying forward
these vital concerns, out in the field,

^ou can be confident that

your counsel tc us will be appreciated and always considered;
that the best we can give to you of judgment, counsel, and
sustantial aid, will always be forthcoming,

^e want you to

feel in the fullest sense that ours is the purpose of hearty

®ur interests are



coranon, and you will find at the Comptroller’s office in Washington
the fullest disposition to he useful, helpful, reasonable,

We hope

that you will feel that you are welcome, and mors, whether you come
to us in person or by correspondence,

We are determined to make you all

realize that we mean exactly this, and that it is going to be a
continuing policy.
*n saying these things, I would like to add the hope that there
may be the closest possible understanding between the national banking
and currency system, and th9 state and private financial institutions.
**ere in ^ew England you have a great class of long-established,
powerful, sound and most useful institutions that are not connected
with the federal system.

With these, we can hope for only such

relations as shall be afforded by common interest and the general
purpose of serving the public well.

But that is ample reason for us

all to make every effort for good understanding and mutual helpfulness,
^heae I pledge on behalf cf the national fiscal authorities, and * ask
you to meet us half-way.
We confront an epoch of greatly changed relations between
commercial ^mgrica and the rest of the trading world.

S0me things that

we had always accepted as well-nigh fundamental, have passed and will
not return.

W3 must adjust ourselves to the new conditions.


country has become, in its relations to the rest of the world, a great
creditor nation; the greatest in the world, probably the greatest the
world has ever known,

^hus far, we have been in this new phase of

international business relations, merely a money leaner.

W6 have

gathered great sums, by processes cf taxation, and loaned them, through
the government’s agencies, to governments of other countries.

4 6-

That is not a good way to establish the status of the creditor
nation, but the exigencies of war made it inevitable.
was to win, and we did win.

Our first business

Now we must set our hand to the task of trans

muting the securities we hold from other countries, into a more digestible

It is not desirable for the government of one nation to hold great

obligations due it from the governments of other nations.

They cannot be

treated in the direct, simple, straightforward fashion that purely busi­
ness transactions are treated.

It is desirable, then, that so fast as

may be, with a view to the convenience of all parties to the transaction,
these obligations of other governments shall be changed in form, and dis­
tributed among the American people; that they shall be converted to forms

in whi ch they may enter and flow freely in the channels of ordinary

Personally, I very much hops for ths not too distant time when

they may be changed from government to merely business obligations; when
instead of our government holding the I.O.U's* of other governments, we
shall find our business men, capitalists, investors, holding the securi­
ties of corporations, business houses, public utilities abroad.

Thus, if

the conversion can be effected skillfully and gradually, we shall present­
ly begin almost insensibly to find ourselves in close touch, in common
interest, with the business processes of the whole world*

The knowledge

and understanding of those processes will be of the greatest usefulness
to us in those efforts to extend our trade, which inevitably must greatly
engross our business community in future.
I speak of these things because of a strong feeling that we
have not been quite prompt enough to equip ourselves for the new order of

The transformation from the debtor's to the creditor's status

came too suddenly.

It would inevitably have come, indeed it was

- 7 -

already fast coming to us, even before the world war.

The vastness and

variety of our natural resources, the bigness of our industrial plant,
made it unavoidable that we Should at last come to the position we now

But the war pitched us headlong into it, instead of permitting

us to grow and evolve into it* v e are in the position of the student
who has a lot of "hack lsssons" to be "made up". There are American,
experts and specialists in world trade, who understand its methods and
are quite able to find their way through, the devious channels of inter­
national commerce and come home again with a comfortable show of profits
on their adventures.

There are however not yet enough of these; there

is not a broad enough foundation of interest and eagerness for the
adventure, nor a sufficient appreciation of the difference between the
business methods that we employ at home and thoap that must he developed
for the wider fieid.
For a variety of reasons, you of New England are especially
favored to assume leadership in the new era.

You are accustomed to hand­

ling capital; to making investment of it in comparatively strange and
distant parts.

There is no great difference between the kind of leader­

ship that near two generations ago g&ta this country the first trans­
continental railroad, and that which in the coming generations will have
the chance to perform like useful - and profitable - services for other
countries and continents.

They are calling to you to come and help themf

and the lands to which they invite you are no more strange or distant than
were the trans-Missouri plains and mountains which New England leader­
ship bound forever into the Union by building the Union Pacific railroad.
In the new time ahead, Americans must learn the business of
investment abroad, and then of re-investing their profits there.
procedure they will widen the market, sharpen the demand, for the

By this

- s -

products of American industry.

Wisely managed, our huge volume of

present investment abroad will in time be turned into a huge snowball,
growing in mass as it rolls on.

The American-controlled railroad


a foreign land will, require American rails and cars and motive power
and management.

Theg^taerican-dominated municipal utilities of another
hemisphere will naturally turn to this country for their electrical,
power and other equipment.

We have the plant from which to supply them.

We will more and more need the market.

So the financial right hand and

the industrial left hand will wash each other, to the benefit of both of
them and of all of us.
Certainly no apology is required for coming to New England to
sketch the picture of possible - indeed, I dare say, of assured, develop­
ment in our wider commercial and industrial relations.

You are the

people who by training, inheritance and tradition best know this

You gave - s the first merchant marine the country ever possessed;

you made it compete successfully, while our nation was yet in its swaddling
clothes, with the oldest and strongest maritime establishments.


carried flag and trade to the seven seaa%' and from that trade you
brought back profits that went very far toward financing the nineteenthcentury development of our own magic continent.

If in time decadence

laid its blighting hand on the merchant marine of those older days,
it was not because New England failed to plead and

- 9 -


You have never ceased to preach to us the lession that we all

recognize, now, as sound and sane; the lesson that maritime equipment
is necessary if a nation will take and hold a commanding place in the
trading world.
Out of the imperative demands of national and world crisis
in the great war, came the inspiration to recreate the merchant marine.
The ships have been built.

They await the touch of your genius in

management and merchandising, to make them the carriers of the world.
Your opportunity is at hand; and it is pressing.

Before we shall

realize it, the new tide of development and expansion and prosperity
will be breaking on the shores of old and new lands.

Can anybody doubt

that a period of new development awairts many regions that till now have
been denied theit share?

Europe and .American will both see the

possibilities, and the need, of opening fresh lands, new mines and
forests and riches of every kind.

There will be a rapid diffusion of

occidental peoples and culture and industry, into areas which till now
we have been wont to regard as too remote and crude to warrant very
serious consideration.
I venture no prophesies as to the future cf the European
nations and system? but I make bold to say that one consequence of the
upheaval which that continent has suffered, will be an epoch of wide­
spread development in quarters of the world as yet hardly touched by

- 10

modern and western institutions.

It happened after the Napoleonic up­

heaval in Europe, and the signs are everywhere that it will happen again.
It is already beginning.

Our part in it will be just about what we choose;

and our place in the world for generations to come will be just about
what we make it by our helpful participation in our narrow-visioned
aloofness from the work that calls us.
With such a vision of the future, with such confidence in
what it holds for us of both opportunity and service, to whom should
one come with his prospectus, if not to New England?

You have the ex­

perience, the background, the capital, the genius for great business
on sound lines.

I will add only one suggestion, and that is, that I

know we have in Washington an administration which sees broadly, which
believes firmly., which plans comprehendingly, for these greater things.
It is prepared to give .American enterprise and energy the fullest need
of encouragement and sustenance.

You will find that vision is not lack­

ing, that statesmanship is broad, that confidence in the mission of our
country and the security of our civilization is deep-grounded and un­
yielding as your granite hills.

This administration asks for your sup­

port so long as it shall deserve; for your cooperation, as it pledges
its own; and for common'effort in behalf of our country, our duty to
humanity, our service to our own people, and our firm conviction that
America has a noble part to play in the rehabilitation of the world.