The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-07-17
NC ADOO IS AGENT
OF BIG BUSINESS
ASSERTS CRAWFORD
Declares Secretary Of
Treasury Represents
Wall Street.
MONEY BILL HIS
South Dakota Senator SAYS
1t D~iscriminates in Favor
of the Large Cities.

That William McAdoo, secretary of
the treasury, is the connecting link
between the Wilson administration
and Big Business, and that the pro-
posed currency law was framed in the
interest of organized wealth and par
ticularly the banking concerns of the
largest cities, are statements that
were made by United States Senator
Coe l. Crawford, while in Mitchell
saturday, in an interview to a repre-
sentative of The Republican.
"McAdoo has always stood in with
the big %financiers of New York City"
said Senator Crawford. at is the I'M
Outstanding in Washington that it is
through him that Wall street now
secures its hearing in the national I'D
m~1nlstration. Further. he is the most
astute and practical politician in the
cabinet, and withal a very able man.
This currency bill now presented to
congress is largely his work, as | un-
derstand it. At least he has seer to
it that it thoroughly protects the
large bankers and big money inter
ests of the country.
south Dakota Interests not Consid-
cred.
II cannot see wherein a state like
South Dakota is given consideration
by this measure. For example. the
proposed law makes it mandatory
all national banks to buy stock
n the proposed federal reserve banks.
to the amount of 90 per cont of their
.unimpaired capital. Yet it is provided
this stock shall pay not over 5 per
cent in dividends, any surplus going
into a fund held permanently by these
banks for the government. Now how
Is a bank going to compel its stock
holders to buy this stock, if they
should not be satisfied with a 5 per
cent Investment. The only other
method of securing the money is TO
take it out of the banks assets, and
certainly could not be commend
ed.
What is more, the national banks,
after becoming stockholders in the
banks, would be allowed to
paper with them provid-
ing it is 45-day paper. The exception,
allowing 120-day paper. requires so
large a cash eserve that this provis-
ion would provide no relief. And how
many banks in this state carry As
day paper? That is all right for the
large centers. where they make a
sreat amount of short time loans on
bills of lading and similar quick-mat-
uring collateral. The national banks
are allowed to make 9-months loans
on real estate, but how many farmers
could mortgage their farms with a
promise to pay in nine months?
V hen a farmer borrows on his land.
il is for permanent improvements, or
for part purchase, or for a large lot
of live stock, or some other deal re-
curing some years to work out.
Would Take Out Large Sum.
las it looks to me. the bill is I'M
in requiring banks to subscribe
10 the federal reserve bank stock
they want to do so or not.
ard further in that the re-discounting
privileges are such as would help the
banks in the big cities. Again.
his plan would take an immense sum
If money out of the state and to
large city, in enforced payments
sor reserve bank stock. In still an
other respect the bill is unfair to the
%lational banks, in that. although they
nUst become stockholders in the fed
raj banks, they cannot obtain any
. villages th,.t ere not open also to
and private banks, for they can
'%e-discount their paper just as can
he national banks.
81 am in favor of currency reform.
,ut insist that enough time should
taken to make it the right kind of
legislation. 1t should not be hurried
trough at the expense of care and
wisdom in its consideration.
The report OF the Pujo committee