The Nonpartisan Leader Newspaper, January 10, 1921, Page 14

s 25 TR SR R R B e TR S S P S R DT R AT I TP | How Banking Controls Farm Profits The Temporary Relief That Cotton Farmers Got in 1915 Shows What a Permanent Credit System Could Do \-,-.L. If Petroleum Were Wiped Out Today IF petroleum were wiped out today, factories would close their doors, agricultural machinery could no longer be made or. operated, food could be raised only by primitive methods, and the transportation of food would be confined to horse power and water, for railroads could no longer run their trains, and before any adjustment could be made our great urban population would literally be starved to death. The prosperity of all industrial nations is based upon petroleum. The peak from which floats the flag that symbolizes the prosperity of the United States arises from a basic founda- tion of crude oil. The underlying foundation of this prosperity si lubricating oil, for without this essential product of petroleum, the machinery of the world would stop and the world’s reserve of lubricating oils, though vast in volume, would last but a few weeks at our present rate of consumption. The next essential factor is kerosene and gaso- line, for without the first, one half of the pop- ulation of the world would be without light at night, and without the second, all types of in- ternal combustion engines would be useless, and the automobile, tractor, truck, marine and aviation engine would be mere curiosities. It lubricating oil, kerosene, and gasoline were available, but the hundreds of by-products made from the residue of petroleum were wiped out, many industries would be closed and unemploy- ment would be general, for in nearly every in- dustry one or more of these by-products are nec- fessary in the manufacturing processes. Thus is visualized by an extreme presentation— purely imaginative—of what might happen if petroleum, or any of its major derivatives, were wiped out over night. ‘Also it shows the im- portance of the work the Standard Oil Com- pany (Indiana) is doing in helping supply one of the basic, economic needs of the nation, and emphasizes the importance of, the service the Company renders in promoting the comfort, health, and happiness of the individual citizen. Standard - Oil Company {(Indiana) 910 S. Michigan Avenue, Chicago, TiL PAGE FOURTEEN DITOR Nonpartisan Lead- er: The article on bank- ing in your issue of No- vember 29 is but another proof that our present bank laws were framed for private greed instead of public good. If the banks were governifient institutions, as the press led the pub- lic to believe they were to be under the federal reserve act (Senator Al- drich said the act was to take thegov- ernment out of the banking b. .iness), and if the government appoin -4 the governing board “according to m. it of appointees for public service, we would not find 90-day agricultural ;.- per discounted 5 per cent while :-- ceptances run but a little over 2 per cent—b per cent to encourage agri- culture and 2 per cent to promote for- eign trade. That the value and quantity of money available - at . harvest time is one of, if not THE main factor, in de- termining * the size of the farmer’s yearly income, is nicely illustrated by the following: Mr. McAdoo, in 1913 and 1914, de- posited United States gold in national banks and requested the banks to be reasonable in their rates to the farm- ers. The banks accepted the deposits _but forget the request. In 1915 he offered $15,000,000 but stipulated that the reserve bank should get but 3 per cent and the member banks 3 per cent. This money was to reach the farmer at 6 per cent. Did all the banks ac- cept it? No! Three, however, did but only used $3,548,293. Were the banks afraid the government would lose this money or was it the prece- dent set—farmers getting 6 per cent money? You answer. When the re- gerve banks were started the govern- ment deposited $200,000,000 for their benefit against which the banks could issue $500,000,000 credit. It doesn’t look as though the farmers were over- burdened with federal aid — compare 15 millions with 200 millions. - The three accepted the loan only after a hard campaign had been waged against dear money. The farmers awakened to their right, demanded re- - lief and got it, and at 6 per cent, while the remainder of the country paid 8 and 10 per cent. The federal reserve board says: “The committee entertains the view that warehouse receipts form an excellent basis for farm loans.” Do you know of a wheat farmer in 1915 getting 6 per cent money on warehouse receipts? TUn- der present conditions, as Mr. Fussell says, the speculators alone are the only ones eligible to this “favor,” McADOO SHOWS EFFECT OF CREDIT What was thé result of the $3,548,- 293 loaned to cotton farmers? Mr. McAdoo says: “I am led to believe that the government’s action * * * was a potential factor in the steady rise in the value of cotton from be- tween 8 and 9 cents per pound * * * to between 11 and 12 cents per pound.” The reserve board reports: “Within 60 days prices advanced from 8 to 12 cents per pound * * * cotton seed advanced to a figure that added $20 to $25 a bale to farmers’ incomes.” Fig- uring 4 cents per pound raise in the price of cotton and $22.560 advance for seed per bale makes $170 per ton in cold cash to the producer because the government forced the banks, through publicity, to loan $3,500,000 at 6 per _cent to the farmers. That is, $3,600,- 000 of the people’s money was loaned to the cotton producers at 6 per cent and the bankers got the 6 per cent BECAUSE they invested (I use this word with discretion) in campaign ex- penses and forced the worst piece of class legislation upon the public that has thus far been written, The only cure for the present laws is education. With the public awak- ened we can have all the 2 per cent . money for farm loans that is needed and when needed, have a flexible cur- rency (not bank credit) and stop all gambling in food, and have every dol- lar based on value. The banks would then be able to control credit and fos- ter future trading. _ | : A. R. THOMAS. . Grand View, Idaho. ABOUT FARM BUREAUS Editor Nonpartisan Leader: There seems to be a lot of talk of the Amer- ican’ Farm Bureau being started for the purpose of driving a wedge in the Nonpartisan league. I belong to the League and I also joined the farm bureau, but not for the purpose of do- ing any harm to the League but for several reasons. First, if the farm bureau will get any results for the marketing of the 1921 crops we want to get it as soon as possible. Second, if the voice of the farmers from 38 states, where the Nonpartisan league is not organized, is sounded out it ought to weaken those old hard-crust- ed senators who have served the big- gest part of their lives in the inter- ests of the gamblers of wealth; it ought to make them take notice of the producers of wealth and it will strengthen our North Dakota men who we have picked to go there and pass some laws to do something for the people that actually produce the wealth of this nation. ; This we will find out before another crop is ready to market, and if there is nothing done for the common peo- ple by that time, why then it will be up to the farmers and laborers of all kinds to pull their coats and throw them into the political ring, regard- less of either old party, and pick men as North Dakota did, put them in Washington to get the changes for your own good and then we will be all Nonpartisans. I see no other way to beat the gamblers and profiteers than to do it with the ballot. - The Nonpartisans must not lie down because some other organization has sprung' up to help bring about the same results as they have set out to do, but dig in and get stronger. . Some people wonder why big busi- ness and bankers do not fight the farm bureau. It is because they are not in the political field and as long as they stay out of the political ring they can not hurt the profiteers. So don’t lose sight of the Nonpartisan league for you will need it to beat the gambling in foodstuff and all wealth. - ; WESLEY WHITE. . Des Lacs, N. D. MAKING A _LEAGUER Editor Nonpartisan Leader: Last Monday I was to the local grain ware- houses and took out storage tickets for all of our grain there waiting for -a higher market.” Whilé in the office a man that I know quite well came in with. a load of barley to sell so he could buy some holiday things for his motherless children. : th I had always known the man to be mildly affected by politics, and was a Leaguer for a short time. Only a few months ago he said the League might . be all right but for his part he wish- ed the rumpus had never started. Well, now he is being hard pressed by,