Gilpin observer., 1913-05-08
By Edward Keating.

trust is beginning to lCse its grip on
the treasury of the United States.
Secretary Of the Treasury. McAdoo,
has announced that the national
banks must pay per cent per annum
on government funds deposited with
them. AS Uncle Sam has about $780,
100000 in the banks just now, that
means that he will collect the tidy
sum Of $1,2OO,O0O as interest every
year.
The secretary estimates that II his
predecessors had taken the same po-
s.tion during the last sixteen years
the government would have prOfied
to the extent of more than 100000
900.
1t develops that during the panic
Of 19O7-w'hen Roosevelt was in the
White House and the banks were is-
suing cashiers, certificates-Uncle
Sam had on deposit with the nation
al banks s257.0OO.OOO and was not
charging penny of interest for it.
This vast sum was not being used
to relieve the needs of the ordinary
mamie couldn't even check against
the money he had on deposit with
the banks-but it was being manipu-
lated by Morgan and his lieutenants
SO as to control the stock market
Mr.. McAdoo's action gives reason
to hope that the WILSON, administra-
ton will endeavor to solve our cur:
rency troubles in the interests of
all the people and not for favored
few. II the government can afford
to lend money to the banks at two
per cent, why can't it afford to lend
few million dollars to the farmers
of this country at four per cent.
Bankers will tell you that first
mortgage on a good farm is almost
as safe as a government bond. But
the banker thinks he either should be
permitted to borrow money from the
government and either pay no inter
est or only two per cent and then
turn around and lend it to the farmer
fer eight, ten and even twelve per
cent.
l can see that it is a great scheme
for the banker, but, for the life of
me, l can't understand why the farm
ers will stand for it. When the cur
rency question is under consideration
at the regular session, some OF us
intend to submit amendments which
will authorize the government to es-
tablish a bureau of farm loans and
lend money on first mortgages on the
farms of this country.
I wish that the readers of these
reports would give the subject little
thought and favor me, with their
views. 1t should prove an especially
interesting theme at the meetings of
oranges. farmers clubs and similar
organizations.
l seem to have stirred up hor-
nets nest by a chance remark made
the other day in the course of
speech on the sugar schedule of the
tariff bill.
said there were no Independent
beet sugar factories-that the trust
controlled them all and. either by
stock holdings or selling arrange
ments. dictated the price for which
sugar should sell in every town in
this country.
That statement seemed to touch
the sugar interests in a tender spot
AMI the trust controlled newspapers
have been denouncing me in language
which is both emphatic and pictur-
esque.
But the statement stands without
qualification. Fortunately l am able
to bolster it up with testimony from
the lips of the sugar crust witnesses.
have just received letter from
R. A. Wagner, president Of the Wis
consin sugar company. in which he
makes the following confession.
THE price Of sugar is higher in
Colorado because over three-fourths
OF the sugar consumed In this coun-
try Is imported and refined ut the
seaboard, and must pay rail freight
to Colorado. In other words. the price
is based on the cost Of foreign sug-
ar {. o. b. our seaboard. plus freight
to the point Of consumption"
There you are! The sugar trust
fixes the price at the seaboard, af
ter carefully tacking the full tariff
onto the price it pays the foreign
sugar grower; and the Colorado sug-
ar magnate takes the Trusts New
York price and adds the freight from
New York to Colorado.