The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-06-30

Keep politics out of the system. The
mead office at Washington is to be
controlled by a governor and two dep
uty governors, all of whom are to be
appointed by the president from list
OF hnanciers submitted to him by the
association. AS the new monetary
plan is now proposed no member OF
any state legislature or Of either house
OF congress can be director OF the
offices of the association. Mr.. Lusk
thinks in this way, there is no pos
slble chance of politics getting into
the reserve association.
/ The fact that there are 1000 differ
ent kinds Of money in the United
States was a most lamentable condi-
ton, said Mr.. Lusk Foreign banks
have uniform system of money that
makes our own system look ridiculous.
The new association would issue their
own bank notes and do away with the
custom of the national banks making
their paper money.
In conclusion, Mr.. Lusk spoke of
the safeguards that had been thrown
around this new system and that It
would practically be impossible for
any set Of men to get control OF the
business. State banks had not been
admitted into the new plan. yet but
an endeavor Is being made. said Mr..
Lusk, whereby the state banks can be
inclnceo in the association.
"A thirty minute discussion followed
this address and Mr.. Lusk explained
more fully TIE plan outlined. Several
questions were asked by the bankers.
but Mr.. Lusk was able TO make ali
the points quite clear. His address was
greatly appreciated and he was warm
ly applauded for his efforts.
Committees.
The following committees were APP
pointed yesterday:
Resolutions-Sen Ed. Pierce of
Sheldon; A. t. Hunter Of Grand
Forks; George T. Webb of EllendaIe.
A. G. osgood Of Neville.
Auditing-H. w. Hansen, Kenmare:
.. i. Robeetson. McClusky; E. G.
Bloe6Uw, Alfred
Nominations-T. w. Cathrow. Bot
tlneau; T. A. Irish, Fargo; r. A.
Barron Minot; E. H. McHugh, Man
Jan; Paul Adams, LaMoure.
n. T. Graves Address.
The Evil Results of too Much Credit
was the subject of an excellent address
by H. 7. Graves, president Of the
James River National bank, James |
town. N. D., before the bankers con-
yentlon yesterday afternoon at the
Orpheum theater
Mr.. Graves spoke of the surprising
number Of farmers, merchants. profes-
slonal men and business men that are
in debt. If the truth were known about
the business men in any one comnun-
lily, people would be very much sur
prised to find the amount of indebted
ness so large, was the opinion of Mr..
Graves.
The responsibility for this over
credit, Mr. Graves lays at the feet of |
the merchants. He then goes on to see
whether easy credit has made tbe |
farmer a better farmer or a better bor-
rover, and comes back to the merch- |
ant shortly. He went back to the DAYS
when the farms were small ana The
farmer practically independent. Then
the farmer and his family lived a life
OF self-denial and produced almost
everything needed for himself and
family In those days, the farmers
business was carried on without the
use OF credit. Thus he had few debts.
Tor the simple reason that there was
no such a thing as credit
Today the farmer has automobiles
tnresninG machines, steam plows. and
extensive buildings for which ha can
not always pay cash. This is the bad
feature OF the easy credit system. saws
Mr. Graves. He then makes the state
meht that easy credit has not been a
good thing for the farmers.
another bad feature that obtains in
many farming localities, pointed ont
Dy Mr.. Graves is the tendency OF the
FARMERS to hold their grain for specu-
latlon, or to buy land with the Az
pectation of boom. This is bad for
the credit of the country and Mr.
Graves urged the bankers to endeavor
TO discourage such business on the mart
Of the farmers.
Mr.. Graves then returned To the
whom he holds largely re-
sponsible for the over credit az the
country, and endeavored to point ont
how such condition of affairs comes
about, The wholesale houses. he ex-
urge the retail merchant 70
buy a large stock whether the cash is
-orthcoming or not. The later finds
nat he cannot sell his goods for cash
Ind must either sell on time or let the
STOCK go out of style on the shelves
lie Is unable TO collect and cannot meet
MS wholesale bills Then the unfor-
innate merchant goes to his banker
or assistance and by reason of the
arge stock on hand. gets the banker ia !
make a loan that is poor.
Because OF the bad condition of az
airs last fall, said Mr.. Graves "the
'anks were forced to carry over prac-
ieally all Of their large loans until !
his spring and then this spring thew
we're forced to make more loans.p This !
3 the bad feature of the over credit !
ystem that Mr. Graves endeavored tol
ring out THE financial success of
ne farmer is OF great Importance
aid Mr.. Graves in concluding his ex-
client address, because all the pros
'erity OF this country comes directly
rom the SOIL He urged the bankers 7
4 the state to encourage the farmers
o keep out Of debt and in this wav q
lelp to remedy the evil of over credit
GRANDFATHER AND Is