The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1912-12-12

IN an dccOuilt Oh IHe money trust
investigation by congress:
Mr.. Untermyer also secured from
Mr.. Frew a description of the method
by which money vas attracted to New
York when small country merchants
and farmers demand funds for the
moving of crops OF the accommodate
non OF their business affairs.
MIR. Frew said that the money
was needed on the New York stock
exchange for speculative purposes;
that country banks kept large sums
on deposit in New York. that when
the home demand for money be-
came strong the New York price of
money rose, and the country banks,
in order 10 gain the big interest
charges, put their money out in call
loans on the New York stock eX-
change. All of these loans are based
on stock exchange collateral. Mr..
untermyer elected"
This is outrageous. II is outrage
Gus enough, in the first instance, for
the New York stock gamblers to an
ticipate and discount any of the "a
~chievements of legitimate industry.
But for those gamblers to use none
that should be employed in honest
business in an attempt to scalp prof
its from the ups and downs of pros
perity, is the most fragrant sort of
imposition upon everybody in bust
ness. And in this the word business
is comprehensive. 1t includes every
farmer, every retailer, every manu-
facturer, in fact every one who is
trying to make an honest living by
producing and selling.
1t is too much to expect of human
nature to think that bankers would
simply refuse to take higher interest
rates in New York than they could
get at home. 1t is the system that
is wrong, for the reason that the
present system makes it possible to
put a premium upon greed.
1t is by all odds the most serious
Indictment that can be brought
against the American government
that it has gone on using the sub
treasury system ever since the time
of jackson. This is itself enough TO
place upon the government the bur
den of proving that it is not imbecilic.
Don't the members of congress know
what to do? Are they so lacking in
knowledge of the subject or confid-
ence in their ow inability 10 devise q
better system, that they are afraid
TO approach the subject lest it result
in greater danger?
If it requires any kind of a new
solution, if the problem had never
been solved before, there might be
some excuse for the inacticity of
congress. But when every other real
ly civilized country in the world eX-
cept Germany has freed itself from
dangerous money shortages by using
bills of exchange based upon actual
property, why should there be so
much hesitation about proceeding in
this country? The idiocy of the pres
ent system is that the amount of
bank currency is limited to the debt
of the United States government. 1t
would be about as reasonable to
limit the sale of petroleum in the
United States to the production of ra-
dunn in Europe. 1t is simply a mat
ter of detail to work out a system
permitting the issuance of currency
upon that which is at the bottom of
all money-property. Congress act
ually seems to have forgotten some
decades ago that money is not in it
self property, that it is but the
medium of exchange.
Any further delay in currency leg
i~slation will be next to criminal.
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