The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1917-05-11

Editors Note: This is the
open Letter addressed to Governor x
Lynn, J,AFFazier by Walter D. n
Powell, A6neEal merchant of Jud. II
Mr.. takes <xkSptions to an
numDeF' Of sta ements made by the
chief executive in his Cupper I'm
ion address, delivered in New York
several weeks ago under Social
istic auspices.)
Your organization fambasts every
body and everything. The poor bank
err, however, seems to be the most
terrible octopus Of them all. Do you
know that debt is an evidence of pros
perity? Isn't it obvious that if there
were no need for banking institutions
there would likewise be no prosperity?
Your organizers tell of the terrible
interest rates paid by the farmers.
Do you know, sir, that the country
banks in North Dakota have bent ey-
cry effort to get mobile money to come
into the state, paying up to six per
cent interest on time deposits? Why
do they do this? Is it simply because
they want this money to look at? You
we'll know it is to have money tc loan
when people ask for it. Now, what
do people get for eight or ten per cent
interest when they borrow few hun
dred dollars at the bank? Did it ever
occur to you that your bank keeps
your account, furnishing you with
pass book and checks, giving y0n
balance and statement each month?
Did you ever 60 to your banker and
have him draw you contract, make
you deed, pay your taxes and did he
charge you anything for this service:
After while you would wake up to
the fact that you owed your banker
something and would find that the
only way you could pay him was to
borrow few hundred dollars at ten
per cent interest, (you would find that
then you were paying only per cent
to the banker, the difference being
what the banker was paying for the
money! and then you would be able
to pay up some of your past due &C
counts also, be able to do your bust
ness on a cash basis. After this ex-
perience, would you feel broader and
bigger, or would you feel that some
one had robbed you? Do you know
that for eastern investors, our banks
are Just as safe as the city banks
where only from three to four per
cent is paid for deposits? And yet,
your organization would so hamper
and curtail the banking business that
this outside money could not be Sc
cured. Do you think money can be
forced aut0s this state by. legislation
or otherwise? On the:other hand, you
do know thatth interest rate IS based
upon supply and demand just the same
as the price of other commodities.
Therefore the interest will lower to
the borrower just in proportion to the
rate paid on savings, and the rate on
savings will be based on the amount
of savings in proportion to the amount
of loans. Would it be injurious to
your organization to tell these plain
truths, or would it, do you think, in
jure the prospects of getting the SIG
subscription to your league? =
Terminal Elevator Veto
You vetoed a measure which pro-
vided for the building of state-owned
elevator, simply because this measure
provided a way of paying for the ele-
vator, a small tax. You did this be-
cause your organization managers
have led our people to believe they
could issue bonds to almost any ex-
tent for building and conducting state
institutions for business and that the