The Dawson news. (Dawson, Ga.) 1889-current, 1921-03-29
Thumb Screws Still On; Fixes Blame.
From the Macon Telegraph.

The wherefore of the present status OF
things agricultural industrial and CONNER
cial is largely due to the restrictions OF al
/ fairs financial This view obtains despite the
strenuous efforts of the federal reserve bank
officials to shift the blame to other shoulders
This is largely borne out by the single tact
that the federal reserve bank rate is still al
the abnormal height OF seven per cent al
though this rate is great Improvement over
/ the Sliding scale arranged by these govern
ment banks at the beginning OF their night
] for defatiOn.
At the beginning of the dehation crusade,
where certain lines of credit were cut ana
tabooed by the federalists, member banks
were charged sliding scale rate running
from six per cent on up the ladder, some
banks paving as high as eleven per cent, with
no limit in sight The federal reserves have
made many millions out OF their excessive
profteering prices on money, and through
them the government seems TO De the only
enterprise doing well under the circumstances;
! All other BUSINESSES suffering stagnatlon OF
various degrees and kinds, but not so with the
government banks, which are insisting upon
their seven cents out of every simoeon pasS-s
ing to customers through their hands:
1t is true that there~a are other banking en-
terprises besides the government banks Whch
lend money at lower rates OF interest than
seven per cent, and it is naturally OF much
moment as to why these other facilities are
not used by the members OF the federal re-
serve banking system. L MS alternative IS pre-
cluded because the federal reserve requires
deposits as a basis for loans. The bank that
lis required by law to do business with the
federal reserve has its funds for deposit tied
up at the federal reserve to obtain loans at
seven per cent Outside banks from which
money may be borrowed at five per cent also
require deposits from borrowers, and the fed
eral reserve members are thus hog tied to the
seven per cent shylock operated by the gov
eminent.
1t is outrageous that such blood-sucking
tactics should be pursued There is no reason
why the government banks should not lend
money at a rate of interest as low as any
other bank can offer-in fact, the govern
ment banks having the money presses at
their command, can lend money lower than
any one else The fact they won't is the high
est evidence that the thumb screws OF torture
are still being applied to business through
this agency. Business cannot proceed without
finances. Finances will not flow unless the
rate of interest is low enough to offer the
user of money profit for his risk and eft
forts. Seven per cent money is too dear to
make it safe to undertake any enterprise be-
cause the money market at a lower interest
rate will leave him with high-cost building
or enterprise that will be ruinous in the face
of loW-cost competition.
The present system OF taxation, levying
prohbitive taxes on perfectly legitimate bus
mess transactions, estop trading, the clrcula-
ton and turning-over of money and the fed
era1 reserve banks put the finishing touches
on what is left
How long, OH Lord, how long?