The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-10-20

Trust which has grown up under our
National Banking System.
The National Bank Law was passed
as a war measure in the COS and !
have heard ii sail that President Lin
coin said he would rather cut OF ms
right hand than to sign il. He no
doubt realized that Congress was sac
rifcing the rights and the interests Of
the people in delegatinS 10 individuals
and corporations, the National Banks.
the power to regulate the volume Of
currency Of the country.
The Republican party imposed this
financial policy On the country and
it seems that the Democratic party Is
going to p~erpetuate it. though if all
that is claimed for it by its advocates
is true, we may expect some relief
from the new federal Reserve law.
No mar can successfully defend our
National Banking system. A promi-
nent Democratic Congressman re-
marked to the writer a short time
ago that lit is the economic crime of
the century," And so it is. It enables
the few to levy q b~urdensome tribute
on the many without rendering in re-
turn a necessary and useful service
commensurate with the tax imposed.
But this is a diversion from the
subject before us. But we are reap
ing now the bitter fruits Of this I'M
just. inequitable and inefficient finan-
cial system. The government consti-
tuted the National Banks its agents
for the distribution of currency and
has issued them perhaps a billion
dollars in bank notes based on gov
eminent bonds, thus enabling the
banks to make almost double inter-
est.
The government has deposited sew
ADo ~ No. -. 49,
institutions at a very low rate Of in
terest. The Secretary of the Treas
ury is now issuing emergency cur
rency to the banks as rapidly as it
"a De printed. But they fail to dis
tribute it, and the people may whistle.
Much Of that which is loaned is at
an exorbitent rate Of interest. 1t was
Informed a few days ago that a Ma
tiOna1 bank in my own State was
charging from ten to twelve per CEN
interest.
The government is now directing
attention to the "St. Louis Pool' as
a plan which promises relief. The
people must o o to a bankers pool
instead OF their own government. And
what is in this pool for the farm
ers? The proposition is to loan money
on receipts at seven per
cent, with an addition of one-tenth
OhS POI CC1lI pcI I1lOuII. mus
II the o is made for ten months
the rate would be s per cent. And Of
course the interest is collected when
he loan Is made, the farmer receiv-
ing $S2 instead of 500 on a ten
months loan.
How many bales Of cotton will he
nave to warehouse and pay storage
on to secure hat s92? AS far as I
nave read from press reports moth
ing has been said about the amount
70 be loaned per pound on cotton.
But 1t is more than probable that the
farmer Will have to put up al least
three heavy bales Of cotton, and pos
Slble four bales as collateral. The
storage and insurance is a fixed charge
that the farmer must pay, whether
ne Is getting an advance of $50 per
bale or only SIS per bale. Therefore
we can readily see that whatever re-
lief is obtained from the pool will
be at a high los to the farmer.
L In speaking of the Henry Bill" I
have reference to the bill prepared
by the conference Of Southern Repre-
sentatives. Of course I know that the
Henry BIZ proper has been tabled
by the Banking and Currency Com
mittee.
Let me say just here, if one may
Judge from the many expressions
HSoAN, lax PCOplS Dire uOI Dc1nR IOOlGQ
by the activity OF Congressmen at
the eleventh hour" nor by the vari-
Gus and sundry bills being introduced
which stand no chance whatever Of
passing. There is a lot Of playing
politics" going on in Washington right
now. or course all these Congress
men would like to see some relief
given the Southern farmers, but they
know that for the Government to
loan money direct to the people at a
low rate of interest would be an inva-
sion of the sacred precincts of Special
privilege, and they are more subser-
Went to these interests than they are
responsive to the needs Of the masses.
While talking with a Southern Sen
ator in Washington last week, 1 said
to him hat the reason why Congress
had accomplished nothing was be
cause there had been no united, de-
termined effort by Southern members
of both Houses; hat many Of them
had done nothing at all. He &C
knowledged that his was true. The
Farmers Union has had men in
| Washington all the time for two