The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1922-07-20
! DR.. LADD'S
NEEKIY \ letter
MI. Dingley tO the Rescue of the Bank.
ers and the Ola Guard

II
MI. Dingley to the Rescue of the Bank
ers and the Old Guard
Now comes Mr.. Edward Nelso,
Dingley, with the prestige Of the nam.
o Of his famous father, (if that rprest
lge means anythingl and puts in til.
defense OF the Old Guard, (which ap
pellation to all practical interests) II
behalf of the existing private banking
system which is benefit and for thu
interest OF 9 few private banking in.
stltutions. 1t Is to be expected that
such defense would be forth coming
/ because, it is to be remembered thai
the Federal Reserve System is prac.
ncally the same proposition as EN-.
braced in the Oldrich measure, ano
which the Old Guard 1abored over
with SO much lamentation amidst the
profuse shedding of crocodile tears
when the idol of their hearts faced de-
feat. In the Aldrich measure the
mountain labored and brought for that
mouse; however, since they could not
bring the mountain to Mohanmet in
I the Aldrich proposition, they brought
Mohammet to the mountain In the
Federal Reserve System. So, of course
must now defend, and the defense
comes from the fluent pen of the
would-be illustrious Edward Nelson
I Dingley. And, be it said to the cred
it of Mr.. Dingley, he has offered about
as good a defense of bad PROPOSE
tion as could most anyone of the Old
Guard faith. But, it is rot to be ex-
pected that the reactionary element
OF the Democratic Party will stay
silent when the creature of their. la
bors is being held up to public survey.
Sooner or later we may look for a de-
Tense from that quarter, which will,
in all probability, be very much like
the one offered by Mr.. Dingley. There
is little else for them to say, they may
paraphrase and discourse, but must
resort to the same line of argument.
For some time now, the National
Republican, for, which Mr.. Dingley
pens his profound discourses, has been
some what exercised over the money
question. This activity can be describ-
ed to nothing else than realization
upon the part of that official organ
that the people of this country know
that something is fundamentally
wrong with their monetary system;
and to desire to head off airy attempt
to effect q change in behalf, Of the peo-
pie, They have heretofore talked all
around the stump, but, evidently, they
have become so exercised over my
proposed amendment to the Soldiers
Compensation Act that they have be-
trayed themselves into the confession
that it is one of 1.-TWO BIG PROPOSE
tions now before Congress-" It is to
be hoped that they will. face it upon
the floor OF the Senate like the big
proposition it is, and there let it's mer-
its or defects be subject to the public
scrutiny Of the peoIass' forum. H.
s4tThs plarss'', say ley y-9
to- tax the profits of banks, banking
institutions, banking partnerships shd
trust companies up to so per cent of
an excess profit over a dividend of II
per cent" 1t is to be expected that
violent objection will be made to such
a proposition. But l will say to Mr..
Dingley that the farmers and produc-
ers of this nation will welcome any
proposition that will enable them to
realize the lucrative wages now paid
officials of the Federal Reserve Sys-
tenn, pay all Of the expenses in the
production of their commodities and
then, over and above all that, guar
antee to them. clear profit of II per
cent which they can set aside as saw
ings for a rainy day. Mr.. Dingiey
says that it is incorrect to state that
the power to scoin money and regulate
the value thereof" has been given
over to "private corporate interests
who initiate and defate as they
please" Apparently,Mr. Dingley has
not been appraised of the fact that
officials of the Federal Reserve Sys-
tenn have testified that the Federal
Reserve banks are private barking
institutions. Perhaps, he does not
realize that only this week w. +. u.
Harding has appeared before Con
gressionaT Committee and recommend
ed that the stockholders be allowed
more of the earnings of these banks
and that less be paid into the Govern
ment as a franchise tax. Perhaps ne
does rot consider the practical tact
that such of the earnings as the GoV-
ernment does get it gets as iran
chise tax and not as partnership earn
1nqS. lie Says "a pCIoOl W4ho AAe~S
a credit Of 500 In bank or trust
company has just as much acash" as
though he had $1O0 in gold or any
form of government paper In hls
hand" Granted, insofar as having
something with which to purchase or
nav debts, but let us suppose that we
permit private banking institutions TO
foan fifty billions of dollars OF such NC !,
credit, and let the borrowers spend
that amount in new developments Of
il, necessities, comforts and luxuries
and the debt still remains then!
These same banks stop all Of his cred
it and demand that this fifty billions m
of dollars of debts be paid. 1t is I'M
possible to negotiate more credits 70
pay off these debts, because the banks
will rot loan any more, there has been
no money put into circulation but the
debts must be paid. The only thing
left is for the producer TO selLhis pro-
ducts at whatever price he can get,
{ and labor for whatever return he can
4 get, and pay off. these debts. The re-
suits are that the banks who own the
debts can force the prices OF COM
nlodities down and buy at their own
prices. 1t is all right SO long as the
credit is in the bank but when the cred
4 III is spent and the debt is oWedit Is
quite different proposition to pay the
debt. This gives the banks the power
to debate and initiate at their pleasure,
fhnu