The labor journal. [volume] (Everett, Wash.) 1909-1976, 1916-04-21
Rural Credits and The Unemployed Problem
Bv WALTER PRICE
Bv WALTER PRICE

of silver in each coin is less than
half the face value And why? Be
cause they can be used as a token to
transfer values
Will there be any limit to money
so issued? Yes, the land loans are
limited 1t is proposed to help the
men Of small farms only, although all
land owners will get a like benefit.
AS for public improvement currency
the only limit l can see will be the
lack of labor to perform the work as
not a dollar can go into circulation
until it's equivalent in labor is per
formed. AN the irrigation bitches
Yakima county wants cannot be built
years, under the new sytems. And
why not? Because of the lack of labor
Under our present system if the Yaki-
ma valley alone had plenty of money
for public improvements all could be
done in five years that we would need
in a century. Why, because labor
would flock in from all over the coun-
try. Under the new system everyone
could get work near home And the
farmers? I wonder if we could raise
enough meat and fruit and honey and
grain to feed those men who would
have money to buy with. In that glad
day | wonder if people would prefer
to wear shabby clothes and shoes
with holes. | wonder if novels to live
in would suit them longer I wonder
if their children would die of prevent
able diseases because of the lack of
doctors and hospitals? | wonder if
the boys and girls would be thrust into
factories at a tender age instead of
going to school.
Now I will mention the third rec
concentration briefly and then I am
done for this occasion
We have postal savings banks now
No one can deposit more than $500
in them or more than 800 in any
month. After your money is there a
year you get two per cent interest
for the next year. The postmaster
must deposit the money in a national
bank The banks pays 2la per cent
and loans it out at ten per cent COM
pounded quarterly. We propose 10
change this and let you deposit all
your money at two per cent and loan
it to a reliable borrower at three per
cent. The one per cent will pay all
expenses of the business it is esti-
mated. If it does not the rate can
be increased.
Now a word about the ninety-two
bills introduced into Congress. All of
the proposed bonds and mortgages are
to be sold on the market. If the in
terest rate is low they will sell at
discount. Who will buy them? The
capitalist will get the bulk of them,
Then what? He will deposit them in
the U. S. treasury and draw out the
national bank notes and buy more
bonds. Now you think you have me
he cannot buy bonds with that
money, he can only loan it out on short
time paper. Very we'll, suppose the
law so reads, does he not own the
courts and congress? Can he not
change court decisions and acts of
congress at Will? Sure thing It has
been done before-t can be done
again. And as for the people, can
they not change congresses and courts
also? Sure thing SO then, when we
come down to the last analysis, what
is needed? A political change of gov
eminent which will overthrow every
king and czar, hereditary or temporal,
political or financial
What is our present congress doing
the political parties which it repre-
sents? Ihave read in the newspapers
that the committee on rural credits is
ready to report. 1t recommends
twelve regional banks with a combined
capital of $6,OOO,OOO Will six million
dollars lift the six billion farm mort
cages Of the country? | have not the
latest statistics at hand and even if
had the quoting of figures is bewilder-
ing. | will venture the assertion that
the state of Washington could use the
whole amount to refund its real estate
indebtedness.
BY Robert B. Van Cortlandt, farm
owner and former banker:
ut is figured that there are in the
United States about six million farms,
and that the farmers Indebtedness is
in the neghborhood of six thousand
million dollars, on which over five
hundred million dollars is paid an