The Tomahawk. [volume] (White Earth, Becker County, Minn.) 1903-192?, 1922-01-12

of debts owed our government by Eu'
ropean nations at the present time.
And the administration has let it be
knowp that it considered. 25-year
limit for repaying the debt as unfair
and that a 5 per cent rate OF interest
would be too high. The claim is that
such limitation would render the me-
gotiations extremely difficult. The
administration has frequently asked
for a free hand in the matter.
In recent mouths many of the in
dividua,s and newspapers who have
Cor years denounced Russia's repudi-
atom of war debts. have been openly
CARRYING on a propaganda for cancel
ing the debts owed us by England,
France, Italy, and Serbia. Yet, Eng
land, France, and Italy are higher de-
veloped countries as compared with
Russia and far more able to meet such
obligations than is a country like Rus
STA.
Up to the present, these countries
have paid no more of their public
debts to other powers than has Rus
STA and they are undoubtedly actively
behind the propaganda for debt can
cellation. ~ 49,. e."
Many progressively minded people
in the United States who favored debt
cancellation at first, have since re-
versed their attitude because these
countries, while refusing to pay us,
have been spending great sums for
carrying on impe-ialistic warfare. Not
T. * h,Yk' tn
Balkan States, Al Africa and In SUBJ
DUNG reform lenents in their own
dominions. 100 ~.
On the other hand, every one rec
ognizes that the principal countries
of the world came out of the war stag
gering under debt which cannot be
carried If our common people are to
be assured of the minimum basis OF
civilization. ~ II the comparatively
small debts between governments
were cancelled it might be easier to
evolve a higher rate of taxation on
the war profiteers which would rapid
" reduce the war debts which coun-
tries owe to their citizens and thus
make a return Of general prosperity
more rapid and certain. %,.-.>
The war added over 800 billion dol
lars or more than the total wealth OF
the United States in 1914, to the over
head obligations Of those who labor
in factory, forest, mine and field.
.sss;.s. A CREDIT LIE ~. ~
The principal argument for repeal
ing the power Of states, municipah-
ties, counties, and the federal farm
loan bank to issue tax exempt securi-
ties. is shown to be a faAacy by the
efforts of our bankers to make foreign
loans. a ,si~: Is =: ~ @S " -. r.
It is alleged that these tax exempt
securities absorb the fluid capital OF
the nation and that there is not
enough LETT to sromote business
through private cha4 ,els. On the
other hand, our banker.. are endeavor-
ing to make loans to Arg. ntine, China,
the Dutch East Indies, and other dis
tant countries. The plain iact is that
Big Business has more capital than II
can profitably employ in horne indus,
try. It has curtailed its own produc-
ton to hold up prices and thus great
" reduced it's own need for capital
On the other hand, capital was de-
MED to producers on the farm and
small Industries for the definite pur-
pose Of debating them. BY this proc.
ess. Big Business insured itself OF
very cheap raw materials and has
been able to secure control OF q vast
amount Of Independent enterprises
which might produce troublesome
when business revives.
The federal reserve bank system
contains more gold than ever before
in its history. 1t has the definite basis
for credit extension Of over 20 billion
dollars. And yet the use Of this credit
is denied until large business has fully
accomplished the four purposes OF this
deflation:
1. Cheap raw materials from the
farmer. y.
2. The beating down Of wage
scales to mere existence levels.
8. The seizure OF smaller competi-
tors. ....
The establishment of a general
lower price level which will make the
securities which it holds against the
government, against the farmer, and
against other Independent elements ct
society worth about twice as much as
they were in 1919.
MICHIGAN BROKE
Bills against the state OF Michigan
amounting to several million dollars
will remain unpaid for some time
after January /, according to its au-
ditor general.
Michigan has not only not had
Nonpartisan League administration,
but the Nonpartisan League has never
any farmers IN the state.
Rather. the administration OF the
state Is in the hands Of the friends