The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1921-09-29
DR.. {. +. LADD'S
WEEKLY LETTER
Washington, D. C. Sept

4GIkC CSV<1UI1SlliIICHt vi OLA AAOAASoC AAOAA~J
system where the medium Of exchange
will give equal benefits to every
American citizen and wherein the
credit of the Government shall be
used for the benefit of all the people
instead of banking corporations: to re-
duce the rate of interests of loans, en-
courage agriculture, the ownership Of
homes, and for other purposes, take
pleasure, in submitting the following
Communication received on August
26th: N~t
ri wish to express to you my keen
appreciation of your services to the
country in introducing Senate Bill
2342 relating to the establishment of
an honest banking and credit system.
"On April 1, 1921. the total stock
of money in the U. S. as shown by the
report Of the Comptroller OF the Cur,
rency was $S,082,773,866.00. Reserved
for redemption Of gold and silver
$3,OO1 ,487 ,915.O0, leaving $5,OS1 ,2S5,-
951.OO. This difference represents the
amount of nationalized credit as of
the date reported for, and which
amount is presumed to be in circula-
ton, altho a very considerable portion
Of this was held as reserve by the
banks and was not in circulation, aside
from other considerable amounts
boarded by private individuals.
"In addition to this volume Of ma
tionalized credit there is yet another
form of credit of much greater val
ume: Only about per cent OF the
commerce in the United States is no.
Undated with money 95 per cent OF
all transactions is iquidated by tne
use of substitutes for money IN the
form of checks, drafts, notes, bills that
are handled through the banks. THESE
substitutes for actual money in the
settlement of exchanges and credit in
struments. They express by their vol.
,1me and universal use, the organized
communal confidence in the integrity
and stability of the commercial sys-
TEN. These instruments, lquidating 20
per cent of all exchanges, are the most
important factor in our commercial
and financial. system. This vast VOL.
ume of credit rests on the wealth OF
the. people and the power of the state:
It is a communal organ, an instrument
for the promotion of the general wei
fare.
"The total volume of the nations ;
money, together with the volume OF
its credit, and the velocity with which
exchange can be made by the flow
Of money and credit, fix the price OF
all the things of the nation, commod-
tiles or, services, for any given volume
of production, that are held or offered
for exchange. The greater the volume
of the money or credit, or the greater
the velocity Of thir flow, the higher
will be the price level for all articles
of commerce and vice versa.
"The power to fix the volume OF the
nations money carried with it the
power to fix the volume Of the nations
credits. This was established by the
National Bank Act and institutional
lied by the Currency Act OF 1878;
which delegated the power to exercise
the money functions Of the Governmnt
to Banks organized under that Act:
And thereby to fix the price levels OF
all things to be bought or sold. :,
"Interest rates, wages or labor, the
market price of every bond, obligation
or security, whether public or priv
ate: how easily these powers can be
and, are used by those who control
them, to regulate the distribution OF
wealth, to their own advantage! This
mower has the defect that inheres in
every operation Of public powers by
private agencies; That private profit
becomes the supreme motive OF ad-
ministrative policy.
"The men who framed the organic
contract that made us nation, stated
definitely the specific objects for
which the nation was created: To form
more perfect union, establish justice
insdre domestic tranquility, provide
for the common defense, promote the
general welfare and secure the bless
ings Of liberty. These were the entire
purpose. It would appear that ire
uuent return to these fundamentals
is necessary. AS means toward Sc
curing these objects it was express
" set forth in the constitution that
Congress should have power to "coin
money and regulate the value there
Of, and Of foreign coin and Tx the
standard Of weights and measures
The intent as to both money and
standards being the same.
CAS- interpreted and applied to
weights and measures, this obligation
has been duly and fully discharged by
congress. It has fixed the setndards
Of length, weight, volume, (both OF
dry and liquid measuresl: Congress
has fived the standard Of measure
n,ent for quantities that were I'M
known when this duty was placed up
~, thov, IiUhf heat energy. DhySi-