The Elk Mountain pilot., 1921-01-27
NOW TIME TO "DEFLATE', THAT
Is, TO DECREASE CREDIT.

10, IL OGOREAoc< ORE0ll
The State of North Dakota estab-
lished state owned bank. 1t has
rendered services of the greatest i'm
portance in these hours of stress.
The gamblers however, plotted its
ruin. 1t was proposed in the law
which created this bank that pro-
ducers should obtain credit on ware
house receipts issued on their pro-
ducts while still in the ownership of
the producers. The effort to destroy
the bank has reacted on those who
would destroy it. The bank has be-
come the center of peoples hope.
In South Dakota the gamblers have
made most modest proposal. They,
too, propose state owned bank; that
the state shall furnish the capital
eight millions; that the bankers shall
furnish two millions and the bankers
who provide the two millions are to
have the management of the whole
ten millions.
The Bank of North Dakota is an.
swerable to and is controlled by an
Industrial Commission composed of
elected officials and subject to recall.
The Bank of North Dakota was capi-
talized by an issue of two million
in state bonds. The gamblers COM
bined to prevent the sale of these
bonds. But now the same gamblers
propose the sac of eight million in
state bonds in South Dakota, but
The ruin which is overtaking busi-
this central credit agency is to be so
established that this capital so fur
nished is to be managed, not by au-
thorities answerable to the people,
but by gamblers answerable to one
another.
ness is for lack of market. The lack
of market for any one article is be-
cause of the inability of someone to
sell some other article. Those who
are to be consumers ought first to be
producers. Those who are to be buy
ers must first be sellers. The denial
of credit is strang.ing the market.
The denial of edit has set prices
tumbling. 1t has brought foreclos-
urs; attachments are enforced sales
in broken market. The resources
and powers of no state are sufficient
to deal effectively with this situation.
The trouble is that the markets are
national. The Constitution of the
United States gives to the National
Government practical monopoly in
financial affairs. Congress alone can
act effectively, and the gamblers who
have promoted this denial of credit
and are p O, eeding with plans to 'ap-l
propriate the Pledged oollaterals Of
nation. are in control of Congress.
The wheels could be started imme-
diately Unemploy ment could be
made an end Of The condition of in
dustrial paralysis and of commercial
stagnaticn could be ended at once. by
ex, luding all gamblers from TIE mar
ket, by f, rbidding anyone to buy
what he Goes net use; making it
felony to grant credit To- gambling
purposes; ruling the specuatcr out
of the market; granting the reeded
credits to the real produs ers; giving
them che nee to exchange their pro-
ducts with cne another; and by re-
storing credits restore prices; and by
restoring p ices make the sale of
products possible on basis which
would not mean the ruin of TIE pro-
ducers.
Will Congress do it? Either this
1
Congress or the Congress recently
elected will do it CIR another election
will create Congress that will rep
resent the useful people and not the