The Nonpartisan Leader Newspaper, November 25, 1915, Page 15

e T Py B SPC L PAGE SIXTEEN Since the passage of the Federal: Reserve Law, it has been the boast of President Wilson and the present administration that it.has discovered and put into effect a way out of all our financial difficulties. So far as discovery is concerned, they did not dliscover anything in connection with the law as the plain truth is that the main provisions of the Fed- eral Reserve Act are identical with those of the Aldrich plan, prepared and perfected to the purposes of the Money Trust by the same hand. No Better Than Aldrich Law. Paul Warburg, who is now a mem-+ ber of the Federal Reserve Board and, to all intents and purposes, the actual head and brains of the sys-~ tem, testified before a Senate com- mittee that he was the real author of the main provisions of both. He told the members of the Senate com- mittee in what respect the Aldrich rlan was superior to the act that had been passed by Congress and how its main provisions could so be changed “by administration” as to make the law that the Money Trust got, just as good as the Aldrich plan which it wanted. And the fun- ny part of it is that the particulan features of the law that was passed which this appointee of President Wilson proposed to change “by ad- ministration” are the same features which the administration boasts of most louldly as an improvement over Bank Notes Taxed Out of Existence. the Aldrich plan. The National Bank Act of 1863, which was superseded by the Fed- eral Reserve Law, was enacted for the rurpose of stimulating the mar- ket .or U.'S. Government bonds is- sued to defray the expenses of the Civil War. State bank “notes of is- sue” were taxed out of existence and the new National banks were given the sole right of issuing paper.money, which was secured by the deposit of Government bonds with the Treas-|Ti urer of the United States. The pa- per money thus issued, secured by U. S. bonds, was safe enough, of course, and for many years after the retirement of most of the green- backs, constituted the bulk of the money in use by the peorile. Banks Had Good Thing. While interest rates were - high, both for the use of the money which they were: allowed to issue and: the bonds upon which it was based, the arrangement was. very profitable for the banks and they were well satis- fied, with the “good thing” which they had. But in time interest rates on money declined in most sections of the country and at the last, the bonds upon which the National bank currency was based were marketed above par at a rate of interest of only 2 per cent. This made. the busi- ness of issuing Government guaran- teed money by’ the banks far less profitable than it had been at first and the banks were plenty ready to devise some new scheme that would render their monopoly of Govern- ment credit more useful and remun- erative. Money Needed More. The Money Trust especially need- ed something more useful because while ‘the business of the country was constantly expanding - and the THE NONPARTISAN I.EADER o ananczdl Legislation in the Unitec - By Hon. Charles A. Lindberg, Congressman from Sixth M mnesota Dtstnct opportunities of the banks for taking emment credlt, w:thout admmtlon : toll of all mercantile transactmns for the far-sightedness and careful : were correspondingly increasing, the preparatmn .of those most. mterested bonds upon which their notes were|in securing: the desired. result. The based were constantly contracting in | whole story has.been told: before in- © It is easy to imagine their vestlgatmg committees .of . Congress . greates:‘ to ‘which every member ‘of that body . has access and no:representative. of . ‘the peorile .will ever.be able to truth- . fully say that he did not have op- rortunity to’ know. what was in the - wind when he voted for the bill as - it was finally. passed. = Some’of them - volume. distress. - Moreover, the trust in the world had come to the rnint where it could see an oppor- tunity. to reach out and expand its control of all business in this country into a like control of the business and trade of the world. Not satiss fied with the control of business in America, it sought a world monopoly. It saw that it could not safely ex- pand, to’ this extent unless backed up by unlimited use of the National credit. Out of this desire for world commercial empire and the necessxty for the use of Government credit to make it safe, the Aldrich plan, for! Monetary Reform and the Federal Reserve Act, its legitimate offspring, were conceived. War Money Is Cheaper. The great war in Europe has ma- terially interfered with the intended development of the schemé, but the fact that the warring nations of the old world are able, today, to secure more advantageous ‘loans from the Money Trust than can the American farmer, business man, or wage earner, | : is'a sufficient indication of the ten- dency and intention that was pres- ent and uppermost in the minds of its authors when the leg’lslatlon was rlanned. were fooled; doubtless, but the most cause ' of polmcal pressure brought Pressure From- Vllfio ‘Heuse. where near its present: purpose and inevitable - effect, could never ‘have out this pressure from - the Whity House that was persistently and di- rectly exerted in its behalf. If leg- lslatlon for ‘farmers and wage earn- ers could, be backed by one-hs'f the influence and carefully plann . fin- esse that was used te secure the Fed- eral. Reserve Act, a new dawn for economic Jjustice wou{d qulckly ap- pear. - “In the next articles, I shall briefly- trace. the steps: which preceded the: adoption of the Federal Reserve Law. and show how sricial privilege given .1 | by it ‘to the banks would be “equal- Some Farslgll‘iodnm. { No one can contemplate the dif- ferent steps that were taken to se- cure what was most desired, to-wit: the free and unlimited use of Gov- are even more necessary and -desir- able: to be extended; to the farmers, wage-éarners, - and industries of our, country Equity Exchanges Makes $26,000 Profits In ~ 90 Days St. Paul, Nov. 23.—At the annual meeting of the Board of Directors of the Equity Exchange held last week it was shown that the net pro- fits of the Exchange for the first three months of the fiscal year (Aug- ust, September and October.) a- mounted to $26,000. For the quar- ter ending Oct, 30, revenue received amounted to $32,196.47. Volume of Business 'l'rehlad. Expenses were $13, 227.63. Net profits on the books were $18,968.94. Additional profit of approximately $7,000.00 for commissions on cars received from shippers and sold to buyers will be received as soon as| The Leader fights for- the farmer buyers have weighed in their pur- chases. With the volume of business that has trebled since the corres- ponding period a year ago, J. M. An- derson, president announced that there had been no increase in exrgns- es over a year ago. Exchange Big Factor. The Exchange statement was pre- pared by Mr. M. W. Thatcher, presi- dent Equitable Audit Company,' Inc., St.: Paul. Mr. Anderson said that the report was as much a vindication for the Equity as it is a factor in serving St. Paul and the farmers. The big ccnvention to be held in St. Paul for three days—Dee. 7, 8, and 9—will celebrate this splendid victory over the Chamber of Com- merce. The farmers of the entire ‘Northwest are urged to. attend and make the 1915 convention the bige gest and best in the hlstory of the movement. HYPHENATED CONGRESSMEN | “FARMER'S FRIEND” LEAVES Aberdeen, S. D, Nov, Washington, Nov. 23.—Hyphenated|: 23—The congressmen are a new political gen- First -National bank of ‘Bristol; cap-- jus in the midst of widespread pro-|talized at $25,000, with deposits of paganda to dehyphenate Americans. $245000 was placed in the hands of Official directories of the new sen-|the bank examiner; ‘Thomas H. Camp-- ate and house being prepared. today|bell, today. show over a dozen hyphenated states-| president of the institution and. Tor- men. They are listed either as “Re- | gus. Strandness cashier. publican-Progressives” or “Progres-| It is alleged that Strandness, who sive-Republicans.” left Bristol weeks ‘ago, has been con- The bull mose movement and suc-|ducting a systematic' plundering of. ceeding amalgamation of Prgressives|the funds:of.the institution for the and Republicans is responsible for the | past year. His present whereabouts arrival of the hyphenated congress- men. At the last election these can- didates got ‘either nominations or in- dorsements of both parties. The-hyphen is absent.from the sen- ate: also the bull moose. The Ilone Progreesive,_ Sen. Poindexter of Wash-| - ington, is understood to have return-|i ed to the unhyphenated, Repubhcan fold. The Leader fights for the‘farmer. examiners: and, . the First State bank E'_IIIIIIII!IIIIIIIIIIIIIIIIIIIIMIIIIIIIlllllllllllllllllllll|l||ll|lll||IIHIIIIIIlIlIlIIIIIIIIIIIIIIIIIIII!IIIIIIIIIIIIIIIIIIIIIIIIII!IIIII " GC. J. LEE, President Valley City, N. D. RURAL CREDITS - LECTURES, INSTRUCTION and DISCUSSION ’ - C.B.MAY, lst, Vice Pres Argusvill ‘WHEN AND 'WHERE HEI-D N.D. - lme, cmmnnms e FARMERS RURAL CREDIT AUTHORIZED CAPITAL 3500, at 7:30, for five consecutive days, Monday to Frlduy ‘inclusiv These schools will be definitely located, and: ‘dated, fifty students have been enrolled for a School in a certain locality. Special cash prizes will be given away for the best pa ; ‘w.rlous subjects, ag outlined in printed literature. : y § A complete course of study will be: fum!shed._ ‘teach "4How ‘I’lwy can Go-opouh to onblo F-nn Profl ’il'mlllllllllflII||I||IIIIII|IIIIIIIIIIIIIIIIIIIIWIlIlIIIlIIIIIIIIIIIIIII|IIIIIIIIIII School Sessions will be held each afternoon at 2: aommnimf" of ‘them were. led to vote for it bas: to bear upon, them by party lead- ers, including. the President himself. . ‘I'say; without: any:hesitation whats.’ 5 ever; 'th_at ‘the - Federal 'Reserve Act, :. . in its: present form, or-with any-_ been passed though the House with- ' ly " valuable ‘and advantageous-—and:: an G. ‘A, Bemitt is the is unknown. It is _r_'epbrtéd»th::t ‘there: has ‘been much -rivalry ‘between the bank nowin the hands of the bank: L2