Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-07-07
THE NEW BLOC.

The majority members of the United States con-
gress have their differences, might be expected
Present day political parties are held together
along arbitrary rather than logical lines In each
party are conservatives and progressives Either
party finds unanmity impossible We can but
wonder how long the present unnatural ahsh-
ments can continue
Just now the conservatives of the senate want
an adjournment for month. while the House de-
bates the new tariff proposal The progressive
wing fairly well organized into what is known
as the agricultural bloc, insists that farmer relet
be taken up in the interim. On test vote for
adjournment the latter won, with democratic help.
The agricultural bloc wants legislation to ex-
tend credits to farmers. The conservatives are
opposed TO 'the government going into the money
loaning business" AS matter of fact the gov
eminent is in the money loaning business, on
huge scale already
The Federal Reserve system is governmental
affair Every rediscount made by that institution
is a government loan, however much an effort may
be made to camoufage that fact 1t is a federal
agency ecr taking loans of a certain type off the
hands of the primary banker.
The real wish of the "old guard" is to control
the type of loans which the federal system shall
rediscount Thereby they can control our whole
economic fabric,
Call money is plentiful in the east at B per
cent These loans subject to call on demand
and are secured by listed stocks and bonds which
have an hourly value in the open market. They
are so liquid in their type and lend themselves
to iegimate market manipulation for the profit
of the manpulators. that they are the especial
favorites of those in the east who have controlled
our financial destinies in America.
The fact s that the big eastern bankers control
the federal reserve system. The federal board Is
made up of bankers The city bankers viewpoint
dominates it's policies. They see nothing but the
eastern bankers interests and the system Is OPP
Grated as though 1t created for profit to be
made in banking rather than for the economic
well-being of the people.
If the Harding administration will reorganize
this board so that It will contain a manufacturer.
a farmer a stockmen and a representative of labor,
as well as bankers 1t will render the country n
great service 1t should be cosmopolitan in its
outlook instead of being dominated by a class. 1t
would be no less safe in Its methods; would be
freer from manipulation and would give considera-
ton to the universal needs of the people We
are suckers to the present controlled situ-
alton
The federal reserve system should be altered to
meet the needs of farmers and stockmen as well
as of market spectators. They say that its loans
must be kept liquid" and that long time loans
are dangerous to banks. In truth, 1t is all
question of percentages. Much of their assets
must be liquid; reasonable amount, which would
be a small part of the whole, could be long term
stuff.
These eastern bankers refuse to adjust the fed
eral system to the need of the country and yet
they fight extraordinary government agencies for
furnishing that relief They try to convince the
public that there is mystery about 1T all which
only the great understand We foolishly
but humbly submit to 1t all.
If the federal system cannot Withstand
the strain of serving the public it is a failure
and must be disposed supplemented.
The Journal wants special favors to any
class But 1t does want relief for producers.
They are the victims of manipulation at this mo-
ment We hope the new "bloc" develops sufficient
power to force a reasonable concession from our
self-constituted economic rulers.