Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-06-07
RESTORE BUYING POWER OF
FARMER, SAYSM.F F. ANDRE WIS

Mr.. Lamont says: Take your
losses like SPORTS Mr.. Schwab says:
Reduce freight rates on steel"
! Mr.. Atterbury says, don't reduce
freight rates. Mr.. Kruchmett says
reduce wages. Mr.. Gompers says
Harding says our finances are sound.
Mr.. Eugene Meyer says sell million
bales of cotton to Europe on credit
and aid the farmer. Mr.. Alexander
says: Go to work. the man that
works wont starye; MI; Goftoa
my COWS and gone fishing the bal
ance of the year, I would have been
out Of debt last Christmas.
All admit disorder exists in our
economic life.
Mr.. w. P. G. Harding wrote: 1.-The
living of all begins with the farmer,
and anything that affects his buying
power is soon reflected in the busl-
ness Of the merchant and manutac-
turer. The farmer should be aided
and stimulated to the full measure
Of his harvest"
Never in the history of the land
has any nation suffered business
depression following a season OF
bountiful crops. There cannot be
an over-production of any commodity
essential for the living OF man, I'M
less you measure it by money.
The need of man is a living-food,
clothing and shelter. These three
things, all and each being the prod
uct of labor, comprises the real
In the organiza ton Of society. to
labor, in the pursuit of a living
there is but two systems, namely
the system of agriculture and the
system of commerce. The first be,
ing the actual producer, the second
6o barter
button of enc mans product with the
other.
Following these primary and nat
ural lines, there is no reason why the
people of this country should ever
have a business depression-unlessI
we suffer a famine of our crops.
Hence, there is no Fundamental
cause for the depression now spread
ing over this country, threatening
the living of all the people in LAND
of plenty.
fer for bread because the people or
Europe have lost their buying power
is nots sound or true. George WaSh-
ington and our forefathers proved
this even while at war, and during
a period when they had less real
as ali we can get from Europe Isl
gold, and as we can't eat gold, nor
IS gold raiment, nor will gold keep
the rain out Of our house, WHEREIN !
can we be in need of more gold from
them?
Use of Currency
Currency was introduced into So
ciety as an instrument of commerce. |
Various articles were used in the |
primitive exchange of products, from |
cattle to salt, and metals finally be-
came the most popular.
During the administration OF
40ODteO
standard and fixed the unit dollar at |
Is $40 grains of gold-this being |
gixed by Fiat of congress. At that |
period we were debtors to foreign |
countries to the extent OF two ana
one half billions in gold, ana WINE
Of the gold standard that 1T would |
be a physical impossibility for this
country to ever produce two and
one-half billions Of gold. The faVor-
able argument was MADE tnat ~
could be paid off with 100000 |
bales of cotton and, the sustaining
argument was that having monop-
DIV Of cotton, if the government
would take over the cotton crop,
handling it as merchant, charging
reasonable price to foreign coun-
tries, it could be paid off with elgh-
teen million bales of cotton, and the |
south could be pushed up to produce
it in one year.
We thus, by legislation, added
third system to the science or pc,
litical economy, and really llmlted
agriculture and commerce and all
their expansion and development to |
the amount of available gold and
credit based on gold.
1t soon developed that with the |
limited supply of gold this great
nation could not develop but a small
part of it's resources, nor continue /
our necessary amount of commerce |
for an increasing population; so that |
in an effort to provide a greater |
credit of capital than our stock OF |
gold, in itself supplied. we adopted |
In this act of congress it provides
and implies an elastic system OF
currency equal to all the needs of |
agriculture and commerce.
1t had the Endorsement In these
ciers. It began business in 1915. |
with a capital of $101,000,000, all
subscribed by member banks, which
are limited to receive per cent or
it's earnings, all other earnings 60
chise tax and to surplus account.
While no limit was fixed for it to
retain as a surplus, it did provide
that "one-half of the net earnings
should go to surplus fund of the
bank until it would amount to 40
per cent OF the Cd)lIdl SlOCh.
This surplus today is 1902, 100000,
or 200 per cent of the paid in CAPT
tai stock.
1.-THE net earnings going to the
government can be used in the dis
erection of the secretary of the treas
ury to supplement the gold reserves.
or applied to the reduction of the
bonded Indebtedness of the govern
ment"
Quotes Bank Reports
The last report Of the Federal Re-
serve banks shows $2,4O0,000000
earning assets. which. at the late
rate of per cent, would show
S16S,000, 600 interest earned last year
on $101, 100000 capital.
With this statement Of facts, it is
apparent that this Expansive cur
rency system" has also the power to
contract the currency and retire
money from it's only public use
circulation, Money has no value to
man except as a circulating medium.
And the continued expansion and in
creasing development of trade and
industry can reach a height that the
functioning of the Federal Reserve
bank will of itself pull it doWn-the
greater the loans and discounts and
corresponding increase in deposits
reserves. And as there is only three
billion gold in this country and the
Federal Reserve bank is collecting
interest on $2,400,O0O,000, it is plain
to see that it's only a question of
| time when all the real money is own
ed by the Federal Reserve bank. And
i ubi1a c frJa MIN her