Cresco plain dealer. (Cresco, Howard County, Iowa) 1913-1945, 1916-05-19

Europe would cause men to DO afraid
to enter new ventures, to expand old
ones, bankers would fear to loan,
money would be tight and times pan
icky. Some may urge that munition
orders are responsible for the good
times experienced in this country.
They are an incident and only an in
cident. They form very small per
cent of the great volume of business
done in this country and without a
stable currency system panics instead
of prosperity would have been the
order in the United States. In addi-
ton to the unsettled condition occa-
stoned by the war, Iowa had soft
corn crop because Of the wet season
last year. This made it necessary to
feed the corn in Iowa rather than
ship it, and millions of dollars must
therefore be invested in stock to
which the corn might be fed. Farmers
have been obliged to borrow what in
the aggregate was large sum of mon
ey for this purpose, but notwithstand-
ing 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 every dol
lar he has to guard against the days
of panic. He need not pile up large
reserves to protect his own institu-
ton in case of a storm. He can loan
his deposits to business men, farm
ers, and others to keep the business
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
democratic president and a democrat
ic congress In answer to the ques-
ton, what do the people want?" Be-
cause II today the bankers 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 discounted to his federal
reserve bank and they will cash them
for him with federal reserve curren-
cy. In other words, our bankers to-
day have never 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
people never realized II. What is true
of the aid this law gives the farmer
Is as true in the case Of the manu- |
facturer. In the past, manufacturers |
have been fearful to borrow up to |
the limit of their credit because of !
the danger of being unexpectedly fore
ed to pay. If a manufacturer was |
perfectly good for line of credit of
s1G0,000.00 and could u this amount
to advantage in his business, he wOuld
in order to he safe borrow but $50.
coo 90 or $15,000.G0 because a dema:l
'or the whole slo0,300.g0 might tho /
him into Bankruptcy. Under the O
system the banker many times had ~
recourse except to torce settlement IL.
order to save the bank. All remen
Ter the bankers panic Of 1907. Mar
nanufa curing and mercantile inst
.utions during money strinsanc.
have been forced out of business u
cause the banker insisted upon ha
ing his money; and the banker h.;
no other recourse. When republica:
panic came along, the banker had I
draw in his lines to protect his ow'
1epositors and stockholders. Todc,
the fear is taken out of the heart o.
he manufacturer because he knows
50 long as his credit is good his bank
er can re-discount mis- notes with the
federal reserve bank and there vii
be no necessity of forcing him to pay.
He may, therefore, expand his bust
ness to the limit, use additional raw
employ more labor and
hereby add to the volume OF business
done in the country. This is the rea-
son for our prosperity. Industry has
anic, has been taken out of the fin
ance of the United States, and no man
$ more grateful than the banker him
self.
Who did this? President Wilson,
n answering for himself the question
What do people want?" He knew
If their wishes and needed them, and
that for sixteen years du-
ing four republican administrations
he people had been demanding that
be done but nothing was
done. If no other accomplishment
was to the credit of this administra-
lion, this law alone should entitle
President Wilson to an overwhelming
Industry is free, panics
eliminated and Wall streets grasp up
IN the business of the country shaken
oose- Surely no Iowa voter knowing
The facts will by his vote do other