The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-09-22
President Alexander of Farm
erS' Union on the Crisis in
Cotton
SAYS PASS HENRY BILL
VaIorization of Cotton at II
Cents a Pound Would Give
Stability in Prices and Put
an End to SpecuIations,
Fluctuations, and Uncer-
tainty

To the Editor: The Government
should do for the people what they
can not do for themselves. This is
generally admitted. The Government
should do for the people under
emergencies and extraordinary con
ditions that which the people can do
for themselves under ordinary cir
c~umstances but are unequal to in A
crisis. The truth Of this statement
will be generally admitted by all
who believe that the protection Of
the people is of greater Importance
thar the observance of precedent and
the established order of things.
Let us submit another proposition:
The Government should do for the
people certain things which a part
of the people are doing in the in
terest of the few and to the de-
triment of the many, without rem
derinG to the many q necessary n
useful service commensurate with
the returns to the few.
To apply this proposition: Under
the Constitution the poWer to coin
money and regulate the value there
of is vested only i'll the National gov
eminent. No State, individual or
corporation is allowed to exercise
this privilege. Practically speaking
the value of money is regulated by
49, ~ ~ III ~ III IL
culation and available to the people.
The power to regulate the volume
OF the circulating medium, under the
Constitution, rests with Congress and
shall not be delegated to individuals
or corporations out exercised by
Congress for the benefit Of all the
people. But Congress has violated
the Constitution and d~isregarded the
rights of the people by comforting
on the National banks a function of
the SoveJnment-the power to regu-
late the volume, and therefore the
value of the circulating money Of the
country.
dition has obtained for q generation.
The few have been enabled to levy
heavy tribute upon the many and
upo every industry.
l think hardly any one will have
the hardihood to argue hat the Ma
tional banks in the aggregate have
rendered to the people a useful,
economic service commensurate with
the aggregate profits of the banks
In other words, this being the only
channel through which money car
pass from the mint and printing
press of the Government into the
arteries of trade, a small part Of the
people are enabled to tax every
product and commodity measured III
money, and everything is valued il
money either directly or indirectly
out of proportion to service ender
ed.
Therefore, the Government SHOULD
administer the banking business O
the country on a low interest rate TO.
the benefit Of all the people, AM
after paying running expenses, turf
into the treasury the net profits.
But let us be more practical ar
admit that it will be some little tim,
yet before this change will be mad
in our banking laws. Then what ca
be done? The Government shoul
limit the net profits on the paid II
capital stock of the banks to
reasonable rate of interest, say s pc
cent. ,
The Government has already de
clared it's right to do this in limit
ing the net dividends on the stoc.
of the Federal Reserve banks to
per cent. The net profit in excess G
the 6 per cent should be divided be
tween depositors n borrowers i
the form of patronage dividend.
And for a time these p~atronag
dividends could be paid with stoc
and thus form a saving habit anon
the people.
Our banking laws favor the none
lending classes. The lender is pro
tected rather than the borrower. TIL
non producer owns more of tn
wealth of the nation than the ma
who created the wealth. The Go,
has made his possible /
protecting certain industries an
granting class privileges. This is a
economic injustice and a nor:
wrong.
Another measure of relief tn:
the people have been hoping for an
which the Government has promise
is a system Of rural credits for tt
Irn1 o~l
year has passed since a commissic
went abroad to study the rur
credit systems of European countri
but nothing has been done to he