The Bismarck Tribune Newspaper, October 13, 1934, Page 3

HUGE PUBLIC DEBT ISHELD DANGEROUS “TO RECOVERY AINS| New York Economist Attacks * Deficit as Possible Cause of New Collapse Editor's note: This is another articl point on the government’s fiscal policies. BY WALTER E, SPAHR Professor of Economics New York University Today there are unquestionably distinct danger signals flashing red with respect to where our public debt is leading us. Each week new voices raised in issuing warn- ings. And without doubt most of these are responsible citizens and raven bic have te disposition to gene: Pape’ unless the facts warrant the awakening of a feeling of deep concern’on the part ‘What, specifically, are the danger signals which have appeared? First, there are the cold figures as. to the startling increase in the pub- le debt of the federal government, consideration five billion. A portion of these may become real rather than contingent ions, Third, there is the very disconcert- ing fact thet the administration is showing no great concern about hold- ing down this mounting debt and annual deficit despite the fact that the president during his pre-election concern on the part of the adminis- tration is seen in the manner in which conservative treasury and budget offi- cials are permitted or forced to resign while the spenders are retained. It is a serious matter when men like former Under-Secretary of the Treas- ury Ballentine, Professor Sprague, Budget Director Lewis Douglas sever their connections with the treasury and budget. It would seem to indi- cate that the government does not men in charge of the fiscal affairs of the nation. Banks Are Loaded Up Fourth, a latge proportion of the government bonds, notes, certificates, and bills which have been sold in ing public but have been sold to the banks. Today our federal reserve and other banks are gorged with these securities. On June 30, 1934, the fed- eral reserve and member banks held 11% billion of government securities. ‘This constitutes an unusually high Proportion of the assets of our com- mercial banks, and it must not be forgotten that such assets are gov- ernment debt—they are not the liquid, self-liquidating assets which are sup- posed to characterize the portfolios of commercial banks. Furthermore, @ large proportion of our national bank notes, federal reserve bank notes, and federal reserve notes are issued the security of this govern: ment debt so that such paper cur. rency is in effect an indirect method of converting the government's deficit into paper money. ‘When banks can make relatively few safe loans, which is true in times Uke these, it is easy for banks to over- load their portfolios with govern- ment securities. These, combined with their surplus reserves, constitute a very large proportion of their assets, and it is commonly said, as a conse- quence, that the banks are now in a care to have careful and conservative | THE BISMARCK TRIBUNE. SATURDAY, OCTOBER 13, 1934 PRAZIER’S RECORD PLAYED BY HOLT IN JAMESTOWN SPEECH Democratic Candidate Points To Work Done by Wheeler On Water Problem Jamestown, N. D., Oct. 13.—(M)— Henry Holt, candidate for U. 8. sen- ator; W. D. Lynch, candidate for con- gress, and Oscar Nygaard, candidate for state treasurer, were speakers at a Democratic rally here Friday. Holt stressed necessity of water conservation and compared the record of Burton K. Wheeler, senior senator from Montana whom he said had pro- cured $105,000,000 from the federal government for Montana against Sen- ator Frezier’s record of sero for North Dakota. He said North Dakota had) received $41,000,000 from the federal government for public works, wheat allotment relief and other agencies as gift. ‘Although he has been nominated by the Republican party, Senator Frazier has not taken a stand on that platform,” said Holt. “I read that in Grafton he made a slight reference to the state ticket. This is just pus- syfooting to save himself. “Prazier predicted that if he was elected he would assist in passage of the farm bill in the next four or five years and I promise that if I am elect- ed that I will have a refinance project for farmers passed at the first ses- sion of congress.” Reads Frasier Letter Reading a photographic copy of a letter he said was from R. W. Frazier! of Williston to Senator Frazier, Holt) said in part: “Williston, N. D., Feb. 10, 1934. “Hon. Lynn J. Frazier: “It has been some time since I wrote to you, but I ran onto a matter yesterday that I think should demand your personal attention. Deputy U. 8. very liquid condition. Their portfolios .| cease to be liquid when their holdings Marshal Frau of Minot has been in Divide county attempting to under- Turkey Marketing Meetings Scheduled Fargo, N. Dak. Oct. 13.—(P)—A series of turkey marketing demon- strations for 13 counties to be con- cluded Oct. 26 was opened in North Dakota this week by the State Agri- cultural college. . Professor O. A. Barton, of the college poultry depart- ment, is putting on the work with the assistance of county agricultural agents. Following is the schedule of dem- onstrations to be held during the next two weeks: Oct. 15, McIntosh county; Oct. nal Emmons; Oct. 19, Grant; Oct. 20, Hettinger; Oct. 21 to Oct .24, Stark county; Oct. 25, Oliver and Oct. 26, Stutsman. Information on finishing, killing, diessing and preparing turkeys for market is being given ut the sessions by Professor Barton. Emergency Education Program Is Planned Fargo, N. D., Oct. 13.—()—The new program of emergency education and the adult program were discus- sed Friday in the office of Miss Caroline J. Evingson, Cass county superintendent of schools, when mem- bers of the Cass County Emergency Education Committee conferred with Edward H. Jones, Bismarck, state cirector. Members of the Cass county com- mittee includes J. G. Moore, super- intendent of city schools in Fargo; M. E. McCurdy, secretary and treas- urer of the North Dakota Education association, and Miss Evingson. ~ Others attending the conference included T. A. Hendricks, relief ad- ministrator for Cass county; Edward C. Johnson, Valley City, relief admin- istrator for Barnes county, and A. F. Holmer, Fargo, secretary of the Fargo leisure time committee. Projects approved by the Cass county group which will be submit- Save on shoes for men, wo- men and children at the Peo- ple’s Department Store. ted to the emergency education divi- sion at Bismarck for final approval included literacy, citizenship, music, music appreciation, social science dis- cussion group, study group in writing technique, physical education, dra- matics, band, parent education, cloth- ing, and library. SS ---— ] City and County | Mr. and Mrs. Clarence Schmitz of Menoken are the parents of a girl born at 1:15 a. m., Saturday at the St. Alexius hospital. — A girl was born to Mr. and Mrs. Oscar A. Nordstrom of Braddock at 2:10 p. m., Friday at the Bismarck hospital. Schroeder Will Head Educators’ Division Devils Lake, N. D., Oct. 13.—(}— Elroy Schroeder, superintendent of Grand Forks schools, was elected president of the northeast division of the North Dakota Education associ- ation at a business meeting which fol- lowed a two-day session Friday. He succeeds Mrs. Anna M. Rother, this city. W. M. Loomer of Grand Forks was re-elected secretary. Grand Forks was chosen the convention city for next year. Other officers include W. R. Reiten, Lakota, first vice president; Miss Al- thea Stautz, Devils Lake, second vice president; A. J. Strand, Grafton, third vice president; G. O. Lindgren, Mc- Ville, fourth vice president. WHO OWNS The Bell Telephone System The Owners, With Their Families Namber Almost Twice the Popula- tion of North and Senth Dakota More than 850,000 Tete own Bell Telephone ey stocks and bonds, live in every state in the Union. These persons with their families would make a-population of about three and one-half million. Leta the American Telephone and Tele- graph Company, parent Com; of the Bell Syatem, of which the Northwestern Bell ‘Tele- phone Company is a part, ‘made a classified list of its stockholders. Noone person owns as much as one-fifth of one per cent of the stock. The list is shown below. ] Considerable root rot in barley de- velo} this year because of the blight-diseased seed that was sown, or because the soil already was in- fected with the disease. Crop rota- tion and the use of disease-free seed are recommended to prevent trouble next year. fo Blankets at bargain prices at the People’s Department Store. Our Full-Use Rate points the way to an All Electric Kitchen and cheaper elctricity for your home. For example, when you use an electric range, or an electric water heater, your rate is: First 30 KWH per month 8c per KWH Next 30 KWH per month 5c per KWH Next 60 KWH per month 3c per KWH All over 120 KWH per month 2c per KWH rnmet become ex-|mine Gov. Langer and get delegates pa ette as they ‘are Tapa pesmi to state convention opposed to his re- at present. Who will purchase these |indorsement. This I think very det- bonds if the banks decide to sell them, | Timental to you. In fact I know that and how can the public and banks | Should your appointee be successful continue to absorb many more bonds?|in defeating the governor's endorse- Today government securities are not ment that it should go hard in elec- sufficiently digested by the public;|tion as your friends are Langer’: Owners ef the Bell System Housewives . . « « « « « 210,000 Bell System employees . . ~ 115,000 Clerks and sales people . . 90,000 Professional and technical. . 40,000 Merchants . . 2 2 « « « 35,000 Manual laborers . . . . . 30,000 Educational . . . 2 . 2 « 25,000 Trades and farming. . . . 25,000 Management and financial’ . 25,000 Personal services. . . . « 25,000: 21,000 15,000 20,000 e TOMORROW! KFYR AT 1.30 LUX RADIO THEATRE MIRIAM HOPKINS five billion for the fiscal year 1934- 1935. A deficit of five billion will carry the debt to 32 billion or approxi- mately twice the low post-war debt figure of 1930. ition,.the gov- When you use both electric range and water heater, you have the above rate with a still lower step of | le per KWH for the electricity used by the storage heating unit of the water heater. With this full-use, the average rate for electricity is only a trifle over 2c per, KWH. by your appointees, since you are or the same Grapes feel that Seceeeredd bond to you men and your subordinat ee eeeee erations ie the|should work same direction. I am ‘open market. In this situation lie real| Just tipping you off for the sake of dangers to government credit, snd| Protecting the organization that made they can become very serious in a very | °U what you are. short space of time. R. W. Frazier, A Confidence Held Lacking pees ea Fifth, the methods of accounting] He also read a letter he said was to used by the treasury in dividing its ex-|R. W. Frazier from Frank Vogel which Ppenditures into general and emergency} said: “I am in receipt of your letter does not inspire confidence in those|to Frazier. It is exactly what all the who follow closely th fiscal affairs of| boys in the state should do.” our national government. Expendi-} Lynch discussed the necessity of tures “are expenditures regardless of | setMling Men to congress favorable to classification, and it aids no one to|the New Deal and who could work for set off as emergency expenditures over | the benefit of North Dakota. Nygaard 50 per cent of the total expenditures. | presided. No one probably can tell how long these expenditures will continue, and they must be met out of receipts un- til they are discontinued. It is like whistling to keep up one’s courage, ‘| and it has the distinct disadvantage of ;| misleading the public, if not the ministration itself. The government : | would show a more realistic and whole- 2nd some attitude on the question of ex- penditures and debt if this distinction in expenditures were eliminated. To- tal expenditures as compared with to- tal receipts would then give a factual and, of course, more shocking picture high levels by these excessive pur- chases by the banks and to some ex- Write or Call for Complete Information North Dakota Power & Light Co. The policy of this Company as well as of the entire Bell System is to provide adequate, depend- able and pleasing service at the lowest cost to the public consistent with fair treatment of employees and of the 850,000 men and women who have invested their savings in the business. 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