The Tomahawk. [volume] (White Earth, Becker County, Minn.) 1903-192?, 1920-11-25

WASHINGTON, D. C.-Little pro-
gress is being made with the efforts
and alleged efforts towar. believing
farmers from being chief suckers
In the new deflation policy.
Reserve board officials pay little or
no attention to leaders of farm or
CARNATIONS so conservative or rather
so harmless that they will not accept
the offer of organized labor to make
a Joint appeal to the president and
the reserve board in behalf OF the
public, and 50 afraid of being called
radical that they do not put their
case properly before the public.
The deflation policy decided upon
by the vested interests as a means OF
making the labor of the workman and
the property of the farmer worth less
and their own more, is an, arbitrary
policy which could be altered easily In
behalf of the farmers if those manag-
ing the federal reserve board were so
disposed.
This policy decided upon just pre-
vious to the fall marketing OF the
farmers crops threatens to become one
of the greatest issues of the day. as
It was following the Civil war, when
the western farmers fought strenu-
GUS deflation to stave off actual ruin.
The proper policy from the point OF
view of the common people would be
to leave prices at the level prcduc-
ed by war conditions, with the excep-
ton of prices artiic:ally created by
trusts and spectators, and to bring
the wages of labor and the returns OF
the farmer up to this new level.
We have % billions of our own pub
lie debt to pay and 10 billions owed US
by allied governments which will not
be paid and consequently is part OF
our debt Farmers have mortgages
and other loans made under war cOndi-
tions.
And to reduce the prices. of arm
products and the wages of labor, as
the defation policy contemplates,
means that the common people OF the
country will have to do twice to three
times as much work to pay off their
national debt and their private debts.
SENATOR OWENS OPINION
Speaking of the farm credit situa-
ton Senator Owen of Oklahoma. who
until the present congress was chair
man of the senate committee On bank
ing and currency, says that the de-
flation policy of the board has done
terrible injury to the country.
1T is still not entirely too late,
says Senator Owen, Ito correct the
dangerous conditions engendered by
this policy.
"The banks are exercising, natur-
ally and properly, discrimination
against the speculator and protlteer,
but the man who produces and the
man who distributes is entitled to
credit against the value of the commc-
dities which he handles.
''The purpose of the reserves in the
federal reserve banks is to provide
credit in tn. case of an exigency. That
is what reserves are held for"
Writing to Governor Harding CT the
re.erve board, Senat>r Owen says:
"You have the power W. der the re-
serve act to suspend the reserve re-
quirements. Without suspending the
reserve requirements as to the reserve
notes, you could issue additional re-
serve notes equal to the amounts out
standing without violating the statute.
~'In other words, you could increase
the credits of the reserve banks ana
the member banks three billions I'M
mediately, not only without harm but
.-,;%1, tho hoponcia1 effect Of immedi.
ately restoring the confidence OF the
country, which has been impaired by
the terrible policy of so-called defla-
tion."
A QUEER TAX PROGRAM
We wonder how many dirt-farmer
members Of the American Farm Blu
e. al