The Nonpartisan Leader Newspaper, December 2, 1915, Page 4

PAGE FOUR THE NONPARTISAN LEADER Banker Meddles In Other Men s Matters Mylo, N. Dak., Nov. 22—T. G. Simpsen, president of the TFiwt State bank of Mylo, took it upon himself to attend to the business of some of his farmer “friends” in this community. He did this by attacking the farm- ers political organization—the Non- partisan League. It was an wunsuoe- cessful attack, however. He is now retreating in disorder. His method of precedure was, first to ejther, threugh invictive or intim- idation, or mayhap = eloguent per- suation, cause some of the farmers to cancel their membership in the Leagne. Method of Procedure Unknown. Just how Mr. Simpson became an intruder on other ‘men’s rights and a meddler in other men’s matters is not known to us at present. It is known, however, that through the activity of Mr. Simpson, a- few members of the League were induced to cancel their membership. Having become drunken with a little success, Mr. Simpson took ‘it upon himself to finish the job with- out the consent or authority of the members. His method was very simple and direct—as far as it went. But un- luckily for Mr. Simpgson it has struck a snag. Simpson Gets Busy. It happened that some of the farmers in this community gave By Edwin Verton checks, on Mr. Simpson’s bank, in payment .of their membership in the League. As president of the bank all of these checks passed under the eagle-eye of Mr. Simpson. Having appointed himself guardian of the welfare of the farmers in this com- munity, Mr. Simpson simply, and without authority from the drawer of the checks, stamped certain checks, “‘Payment Stepred,” wrapped them in a meat bundle, tied them with a rubber band and sent them back to the headquarters of the League. Should Have Asked Him. When asked, to explain his action Mr. Simpson replied that he was act, ing in the best interest of the farm- ers, who were his depositors. He also thought the League organizers should have called on and consulted him before taking up the work of organizing around Mylo, This profession of being public guardian over the financial welfare of the farmers of Mylo does not jibe very well, however, with the fact that about the same time he cashed | $400.00 worth of checks presented at his bank by representatives of a picture enlarging concern. He ad- mitted that farmers had told him that the enlarging contracts were obtaiend by deception and misrepre- sentation, it is reported, yet he al- lowed payment to be made. Why Discriminate. It would be interesting to know why Mr. Simpson makes this dis- crimination between concerns. Evi- dently he thinks picture enlarging concerns know their business and that farmers who permit such con- =rns to do their enlarging, -also know Read what these farmers say: «I, John Grones, living on Sec. 21 159-70, near the town of Mylo, N. Dak.,, do hereby certify that 1 did not stop the payment on the check, drawn by me, dated October 1, 1915, for six dollars, on the First State Bank of Mylo, in favor of T. Thodor- their business. It :is-equally evidemi» son, for membership in the Non- that he does not think farmers know their business when ,they. undertake to form an orgamzatlon to protect themselves from m]ustlce This banker, no doubt, belongs te .an organization of bankers and would not thank anybody to interfere with his rights in so: belonging. That’s his own business, we presume. By what right he underiakes to dictate the conduct of the farmers of his community, is one of the mysteries past finding out. It would be interesting to know if Mr. Simpsen’s bank could be class-- ed with the infamous ninety national banks in North Dakota which have been guilty of taking an unlawful interest. Farmers Show Him Up. Some -of the farmers around here, when seen by a representative of the Leader, declined to be quoted on the matter because they were un- der obligations to the First State at Mylo. Others, however, as the ap~ pended statements will attest freely and; gladly helps to put Mr. Simpson in a hole. partisan. League. i Signed: JOHN GRONES. I John Nelson, a farmer, living one ‘mile east of the town of Mylo, North'"Dakota, - do hereby - certify that I did mnot authorize The First State Bank of Mylo, N. D. to refuse payment on the check given by me under date Oct. 1st, 1915 in favor of T. Tordorson, in payment for mem- bership in the Nonpartisan League, and drawn on the First State Bank of Mylo, N. D. Signed, JOHN NELSON. Dated at Milo, N. Dak, Nov. 6, 1915. I, Car] Munsen, a farmer, living in Sec. 12, Twp. 15, Range 70, two miles south ,of the town of Mylo North Dakota, .do hereby certify that I did not authorize the First State Bank of Mylo, Ni Dak. to refuse payment on the check given by me under date of October 1st, 1915 and drawn in favor of T. Thordorson, for member- ship in the Nonportisan League. Said check being drawn on the said First State Bank of ‘Mylo. Signed, Carl Munsen. Dated at Mylo, N. D., Nov. 6th, 1915. Financial Legislation in the United States By Hon. Charles A. Lindberg, Congressman from Sixth Minnesota District ; The first indication that came prominently to the notice of the riablic, of the.existence of a Money Trust in, the United, States, develop- ed out of the practice of certain banks. and ‘leaders of finance in New York, of “underwriting” securities. An industrial corporation would seek to extend its business or, possibly, to cut a melon in the shape of a stock dividend, without increase of plant or actual capital; an -existing rail- way would seek to do the same; -a company of persons would desire. to form a new .corporation or finance a new railway project. The first move was to get in touch with these fin- ancial leaders and, if they saw fit tq assist, sufficient credit would, be ex- * tended and the new securities would be issued and “sbsorbed”. An under- writing syndicate would be formed and it was the practice to ‘allow” certain banks to participate, that is, @ list of banks and financial-institu- tions would be made up and each ‘of them notifled of the favor that had been extended and the amount :it was expected each - would - take. “Fhese institutions “get ia on the ground -floor,”" but::whether-the. ven- fure proved immensely profiiable gr only moderately so, nome of them ° ever thought of refusing te partiei- pate to the extent indicated. If they ik, it ‘was definitely understood that the powers 'that ruled finanee ‘wounld put such institutions on .the black list and it would no more be “aHow- #4” to .come in on the. pext good thing. The rule of the Money Trust wwas absolute and autoeratlc to the dast degree. norgonfmns Internffll. Those who ruled, ‘the Money Trust were direetly interested in the suc- cess of certain industrial corporations and certain railways. If credit was sought for any enterprise that looked Promising and did not threaten com- ijpetition with any already estahlished Money Trust enterprise, well .and -good. Credit was forthcoming. But -if it was proposed to start competi- " ion, in the slightest degres, for any trust -controlled institution, the hand that controlled credit closed ‘tight and it stayed closed. <Credit could not be had. In some way, which they always manaegd, the word sent round that this enterpriss was in disfavor and the evidence shows that many times banks which had promis- ed abundant credit to -such enter- prises, quickly withdrew such sup- port as sfoon, as word came to them of how the land lay. This- was ,and still is, the situation The Federal reserve law has changed, conditions in noimportant favorable particular as will fully appear no matter what the President and his politieal backers may claim. “Must Work Up Sentiment The first thing that was necessary in order to get the kind of legisla- tion the Money Trust wanted, which woyld place in their hands the free and unlimited wuse «of government credit, was to werk up a sentiment .among the people for a change. If the people could be induced to de- mand a mew currency law, the Money Trust could be depended -upon to :see that whatever law was passed would he:a. good one—For it. - In the mineties the west was mdeht- ed sto the -east and it was argued that, with more money incirculation, farmers and others, could more easi- | ly: pay. off ‘this ‘indebtedness. This fhe east did net . want, . of course. Now the tables were turned. The west,_had been more prosperous than the east for a number of years and hundreds of millions- of dellars, be- Jonging ‘to- the depositors of western banks was on deposit in the bhanks of New Yark. And the first act in the campaign for a mew currency law, was the panic of 1907, which was dzmgned to throw a scare .into the western banks and their deposit- ors, by withholding this money when it was demanded by those to whom it rightfully belonged. No :attempt has -ever been made to justify the withholding of these funds during that panic, It was an act for which no justification is possible, But the fact that the money was unlawfully withheld was worked over time to show the necessity for such legisla- tion, as the Money Trust wanted While the desired legislation was be- ing secured from Congress, time after time, when some point was in danger of failure, a threat of panic would come from New York and the desir- ed legislation would be forthcoming. Aldrich-Vreeland Act. After the panic-of 1907, the next number on the Money Trust program of enlightenment and preparation for the main event, was the enactment of the Aldrich-Vreeland Aet, .of 1908. Next to the provision for a Monetary Commission which spent- some four or five years and hundreds of thous- ands of dollars of the public money in finding out just what kind of leg- islation the Money trust wanted, the principal feature of that Aet, was the provision that “other seeyri-. ties” tkan Unitcd States bonds might be used, to secure the issue of Nation- al Bank Notes. For years, certain firms in New York and selwwhere, which a Commiitte of Congress 1 its report designated ‘as the *Constitu- ent Members of the Money Trust” had been ingtrumental i ma'kmg and- marketing millions n,pon= nithic securities, Large blocks ognized clients .of these’ pamcular National Bank Notes, would also stimulate and, steady the market for undigested Securities. And so it was . done. It is true that no National Currency was taken out under the Aldrich-Vreeland Act until the Eu- ropean war began. Then the United States Treasury loaned to the banks $387,000,000 at the rate of 3 per cent. The banks paid Uncle Sam less than $3,000,000 interest, while they and the speculators to whom they loaned - the money, scalped from the people, it is claimed, over $25,000,000 profitsy The amount, of course, no one knows, but that it wa3l very great no one doubts, Still, though the President has aproved loaning the government credit to the banks, and though he took an active part in extending to them this special privilege, and at anofl)er time a still greater ‘special prlvxlege, he. stated that the farmers should not ‘have direct aid from the govermpent Does anyone know of any “wonderful good that the Wall Street banks have done and of any great wrong or misdeed, of the farm- ers, which would justify the granting of .special privileges in the way .of direct 7aid from the United States to the banks, while the farmers whe have better -security, are refused di- «Tect-aid? - That is what has been done - But that is not the worst. ‘Wait for some.. more. ‘The government is he- ~ing .run in the interests of a few. firms. “The head of tthe House: uwaQ will furnish the records to prove gan had remarked that the market it. m‘{s'ufi'efim 'from ’dfidikés'ted. ;e held. #. 5. Loans to Banks. Now note and we will get the cor- rection. - Making them useful as se- curity for National Bank Notes had been a mighty stimulating influence in, boosting and keeping -boosted, the price of government bonds. Making rajlway and - industrial ..corporation bonds also available as security for i clmnges will "be’ ‘made in the pres- ent boundaries of the Minneapolis re- serve district or any other districts until the Board hax threshed out and, finally decided as to its attitude to- ward a reduction in the number of Federal reserve districts. This will probably not be taken for several weeks, ‘The Leader fights for the farmer, R