The Devils Lake world. (Devils Lake, N.D.) 1920-1982, 1921-01-05

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SENATOR HANsBRoucH SHOOTS
STRAIGHT AT MARK
Editors ~Note:-Former United States Senator
H. C...Hansbrough, who for eighteen years re-
presented North Dakota in the United States
senate, and whom all fair minded people now
freely, admit was the most brilliant stateman
this state ever sent to congress, has recently
written an article touching upon present day
conditions for the January issue of Pearson's:
Inasmuch as Senator Hansbrough made this
city his home for thirty years, being one of the
men who blazed the way for the best little city
in the northwest, The World is glad of the op-
portunity to furnish it's many readers with a
reproduction of his article, which is being re-
produced more extensively turnout the country
than any recent contribution to present national
conditions. The article:
CAS- yet no definite effort has ever been made
to check the power of capital by constitutional
provision. Numerous laws have been enacted
with this end in view, but, in too many instances,
they have proven inadequate, either thru mis-.
conception Of the object sought, occasionally
in consequence of multiplying court decisions,
or mal-administration, but more frequently as
h result OIL DOWNRIGHT ueLldllCe vi JIG PdAI VI
powerful interests Immediately concerned.
ut is now a pretty safe prediction that not
even the federal reserve act, the most effective
and popular law of its kind, is to survive the
opposition to it of the combined banks and other
corporate interests of the country.
''The reasons for this organized opposition
ere obvious. Until reserve banks were es-
tablished the profits on rediscounts of credits
went into private pockets; now they go into
the public treasury. Nor was there any au-
thoratative rule of law against exchange charges
pertaining to domestic checks. Bankers do
not conceal their objections to these features
of the law, and they are planning to have it
amended accordingly.
"But to what may be termed the subconscious
bank mind the most obnoxious thing about the
reserve law is it's SUSPECTED TENDENCY
TOWARD PUBLIC OWNERSHIP. @
There is a growing conviction, never
theless, that the only solution of the exist
ing bank problem is the one of which the
bankers stand most in fear. That the bank
problem has reached the stage of COM
pulsory correction must be widely apparent.
"a careful examination Of recent reports by
Comptroller John Shelton Williams would
furnish material for a great deal of reflection.
"Space forbids an extended reproduction Of
Mr.. Williams official statement in the matter
of interest rates, but even a short synopsis re-
veals a condition of bank affairs which bodies no
good to legitimate enterprise.
"As an example, by their own sworn state
ments in 1917 it was shown that 1,247 of the
5000 national banks were charging rates of
interest FORBIDDEN BY BOTH FEDERAL
AND STATE LAWS. Zone bank admitted
under OATH" says the comptroller, ''THAT 1T
WAS CHARGING AN AVERAGE OF rs PER
CENT ON ALL ITS LOANS; ANOTHER, AN
AVERAGE OF SO PER CENT; A THIRD, 40
PER CENT, ON ALL LOANS.
5$ As the sworn returns came in, as dem
anded by Comptroller Williams, the rate
continued to mount. "a loan for $1,000
for a month and a half was made at II per
cent; one for a month at IS per cent; $3.50
for two months at IS pei. cent; $491 for
$50 days and 5000 for three months at IS
per cent; one of $50 to a farmer to help
him raise his crop, on which, besides a high
rate OF interest, an extra sum Of $50 had
been charged for examining the land"
N The comptroller then ges on to say that the
communities in which these conditions were
INST pronounced "were precisely those in which
INK reports showed the interest charges to
a11ell borrowers were the most extortionate.y
ssaggsBut persisting pressure by the comptroller
N9 6ce resulted in minimizing the rates to some
e. lent. bank, fearful off the cancellation
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