Saturday news. (Watertown, S.D.) 19??-19??, 1915-06-24
AS TO Rural Credits

BY n. L. Loucks.

by n. L. Loucks.
(The followin plan was outlined BY
Mr.. Loucks at a recent gathering In
this state for the purpose of organ
izing a rural credits league, and ii
is understood that the principles cor
tanned therein were endorsed as q
basis from which to work on the part
of the league.-Editor.)
Rural credits is now at the front as
a national issue. In discussing it VIC
should lay down certain fundamental
principles towards which our efforts
should be directed. If they are sound
by keeping them to the front we eS
tablish a. safe basis, and can accept
Of any measure that leads in our d.
rection.
Our medium of exchange, whether
Of metal or paper, is a public utility
created and issued by our fedora,
government for public use. No in
dividual, combination of individuals
corporations or state can legally
make or issue money, and none
should be permitted to m~onopolize it
1t is by far the most important pub
lie utility of any civilized nation OF
people.
1t should be administered in the in
~terests of, and be readily accepted
by all of the citizens of the sovereign
creating it, and be a full legal tender
for all debts, public and private.
Like all public utilities, municipal
state or national, it should be admin.
istered without special favor, and
J without private profit as is our me
dunn for the exchange of intelli
gence, the post Office system.
Money like any other commodity
when uncontrolled is subject to the
law of supply and demand. When
controlled by private interests it be.
Stability Essential.
An essential function should be
stability. 1t is impossible to have a
stable currency based on any single
c0mmodity, and more especially a
metal depending wholly upon the
chance Of discovery.
The present currency law in recog
MIXING the fact that money based on
value is just as good as money
stamped on value, and much more
~convenient, has taken a long step for
ward towards the scientific solution
of the money problem.
The authors and advocates OF the
IAldrich currency bill, and the pres
ent currency law, succeeded in their
educational campaign in proving
that money is not necessary for the
transaction of our business; that all
we need is credit and a check book,
which in the main is true.
Federal Reserve Notes.
For the exceptions Federal Reserve
bank notes and minor coins will do.
The Aldrich currency bill provided
for the gradual retirement of all of
our present currency from general
circulation. The same is practically
true Of the Owsn-Glass alaw.&4What-
ever power is lacking in the law it
self has been conferred on the Fed
eral Reserve board, and retirement is
rapidly progressing. Our medium
will soon be federal reserve bank
notes.
In Europe and Australia agricul.
ture is given special favors by the
several governments, and secures the
use OF money for less than does com
msrce and industry. Here we pay on
an average two to two and a half
times as much. We do not ask for
any special favor for agriculture. All
we ask is to be placed on an equal
footing with commerce and industry
and should not be satisfied with less,
Supply and Demand.
The amount to be provided should
be governed wholly by the law Of
supply and demand for use, and
should respond to that demand auto
matically. The per capita basis be
longs to the past. We are no longer
exchanging individuals, but labor anc
the products of labor.
The control of this public utility
In the past by one class of non-pro
iducers, whose sole aim was private
profit, has resulted disastrously fol
both producer and consumer, and II
the unparalleled concentration Q
wealth in the hands of a few.
Under our present system the cur
rency will be issued by the fedora
reserve banks and loaned on con
mercial paper. These, backed by tn
credit and taxing power of the natio
will be the very best currency eve
Il issued by any nation.
Why Commercial Paper Alone?
] Why limit that loan and endors'
J ment to commercial paper2
investment paper secured BY far
land, i stable farm products
I store, should be and Is better secu
! ity. Leading Chicago bankers So
I that they prefer to loan their nnone
on wheat Id store than on COVER
! ment bonds. IT is the best securii
known to investors.
The federal reserve bank notes a.
nov issued without interest to u
reserve banks by the federal COVER
ment, the only charge being the a
ual expense incurred (less than q
:. tenth ef one per cent? in 9th
!. words, at cost iSecs Bl. For q pt
Tic utility that principle is SCUM
but indefensihle when gral1Sd 70
private business for pf6sft as at PR
ent. The medium Of exchange shou
be issued at cost by the feredal Y.
fo every industry on exactly the sas
.e.4ssaas to security, expense and