The Leon reporter. (Leon, Iowa) 1887-1930, 1916-05-11

the aggregate was large sum of
money for this purpose, but notwith-
standing this unusual demand under
already abnormal conditions the
banks have taken care Of all demands
and you have heard nothing Of tight
money. Why? Simply because the
fear of panic, the fear of tight money
has been taken out of the bankers
life. He need not keep on hand ev-
cry dollar he has to guard against
the days of panic. He need not pile
up large reserves to protect his own
Institution in case of a storm. He
can loan his deposits to business men,
farmers and others to keep the bust
ness of the state and nation going.
And why can he do this today when
he could not do so before? Because
of the Federal Reserve Law passed
by a democratic president and dem
ocratic congress in answer to the
question, What DO the People
Want?' Because if today the bank
er's customers need money and the
banker finds he has more demand
than he can supply from his capital
and deposits, he has only to send
some of the farmers notes he has dis
d
and they will cash them for him with
Federal Reserve currency. In other
words. our bankers today have new
or failing source of supply back of
them and they need not depend upon
New York bankers to say whether
they may or may not loan to Iowa
farmers money with which to buy
stock to which they may feed our
corn. We have gone through in Iowa
what would undoubtedly have been
most serious situation except for this
Federal Reserve Law, and our peo-
pie never realized it. What is true
of the aid this law gives the farmer
is as true in the case Of the manu-
facturer. In the past, the manufac-
tlrers have been fearful to borrow up
to the limit of their credit because of
tie danger of being unexpectedly
forced to pay. If a manufacturer was
perfectly good for line of credit of
100000 and could use this amount
to advantage in his business, he
would in order to be safe borrow but
$4,000 or $4,000 because de-
mand for the whole 100000 might
throw him into bankruptcy. Under
the old system the banker many
times had no resources except to
force settlement in order to save the
bank All remember the bankers
panic Of 1907. Many manufacturing
and mercantile institutions during a
money stringency have been forced
out of business because the banker
insisted upon having his money; and
the banker had no other recourse.
When republican panic camc along,
the banker had to draw in his lines
to protect his own depositors and
stockholders. Today the fear is TAX
en- out of the heart of the manufac-
turer because he knows so long as his
credit is good his banker can redis-
count his notes with the Federal Re-
serve Bank and there will be no ne
cessity of forcing him to pay. He may
therefore, expand his business to the
limit, use additional raw materials,
employ more labor and thereby add
to the volume of his business done in
the country. This is the reason for
our prosperity. Ind stry has been
released. That black spectre, panic,
has been taken out of the finances of
the United States, and no man is
more grateful than the banker him.
self.
Who did this? President Wilson,
in answering for himself the ques-
ton, what Do the People Want?'
He knew of their wishes and needed
them, and remember that for 16
years during four republican admin
istrations the people had been de-
handing that something be done but
nothing was done. If no other &C
complishment was to the credit OF
this administration, this law alone
should entitle President Wilson to an
overwhelming reelection. Industry
is free, panics eliminated and Wall
Streets grasp upon the business OF
the country shaken loose. Surely no
Iowa voter knowing the facts will by
his vote do other than commend such
law.
Income Tax.
The people wanted an income tax,
that the burden of government might
be lifted little from the shoulders
of those already bowed down and
placed a little heavier on the Shout
ders of those we'll able to carry it. We
all recognize today in America the
justice of this, but it needs wait for
democratic administration to give to
the people on income tax law. Anotn-
err answer to the question, What Do
the People Want?' You heard no de-
mand by the excessively rich for an
income tax No, it was the people.
the SO per cent, that demanded it;
and under this administration that
voice is heard and needed rather than
the voice of the / per cent.
The people have long demanded
that there be some tribunal before
which the business men Of the coun-
try could appear to lodge complaint
of unfair competition or protest be-
cause of an abuse of any kind in the
conduct of the business of the cOun-
try. The Sherman law was strength
ened by this administration, but this
was not enough. Some place must
be provided where one might file his
grievance The answer to this de-
mand of the people was the estab-
lishment of the Federal Trade Com
mission.
Federal Trade Commission
All are acquainted with the work.
ings of the Interstate Commerce