The Leon reporter. (Leon, Iowa) 1887-1930, 1914-10-15

the revenue could be collected were
not shipped in from abroad. Here
the income tax stepped in and in ten
months of it's operation in the last
fiscal year brought in $7O,O0O,O 900,
saving loss of revenue which would
have nearly doubled the inevitable
deficit of the treasury, due to GUS
toms reductions. And the income tax
collections will this year yield a
steady flow of revenue that will ap-
proximate $1O0,O00,O0O But for the
aid of the income tax, democratic
leaders believe it would have been
impossible for the federal treasury
to have left any of it's money in de-
post in the banks. The banks would
then have had to call in all of their
loans from farmers, merchants and
manufacturers, business enterprises
would have been paralyzed and the
employment of labor would have
ceased.
What really happened was that,
facing great international catas-
trophe which has wrecked the bust
ness system of every other nation on
the globe, the United States has re-
covered it's balance and is forging to
the front toward period OF renewed
prosperity. On every sloe the
strength and solvency Of the Ameri-
can business world is seen. Factor
les are resuming operations all over
the country. A tremendous demand
for American goods has been Great
ed, and the capital and credit to meet
this demand will be firmly establish
ed by the system of federal reserve
banks
The currency law, providing for
the federal reserve banking system,
has been subjected to criticism by
Senator Cummins in his Iowa speech
es, although twenty-seven republican
votes and fifteen bull moose votes
were cast in favor of it. Senator
Norris of Nebraska, a progressive re-
publican leader, declared in voting
for the bill it was "the most import
ant measure which has been before
congress since the civil war" Letters
have come to the treasury depart
ment from all parts of the country
from bankers who have given the
federal reserve act credit for prevent
ing total collapse of credit in this
country in the crisis of early August
occasioned by the outbreak of Europ-
can war. The currency law formed
the basis upon which other war
emergency measures were predicted.
1t gave confidence at the time and
guarantees of future facilities to
take advantage Of opportunities offer
ed by the war conditions to expand
Americas foreign trade, which made
it a bulwark in an hour of need. Ad-
ministration leaders believe the peo-
pie realize this and they believe Sena-
tor Cummins' aston in voting against
the bill and now criticisins it will
be rebuked by the people.
The appointment Of Edwin T. Mere
dith, editor of Successful Farming at
Des Moines, as one of the three dlrec-
tors of the federal reserve bank in
the Chicago district to be named by
the reserve board, over scores OF can
didates, is considered the highest
honor. The most eminent bankers
and business men in the country
form the directorates Of the twelve
reserve banks. Congressman Con-
molly, who was opposed to Mr.. Mere
dith in the primary for United States
senator, proposed Mr.. Meredith's
name to the reserve board and used
his influence with Secretary McAdoo
and the federal reserve board in urg-
ing favorable consideration for the
candidacy.
Members of the reserve board en-
countered opposition from other
states in the Chicago district against
the Meredith candidacy, as Iowa had
two directors already in the classes
elected by the banks, while Indiana
had none, but Mr.. Meredith's appoint
ment was urged so persistently by
Congressman Connolly and the Mere
dith supporters in Iowa. that the
board acted favorably in his case.
j. x. Daugherty.