The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1922-05-04
DR.. LADD'S
WEEKLY letter

II
graduate Mr.. Mellon, head of the
Treasury. He is borrowing money for
the Government at three and a half
per cent. That has not happened in a
long time, and you are interested be-
cause your taxes pay the interest. 1t
means that money is to be cheaper.
1t also means that labor will be en-
ployed. That is what the country
needs. While usury--labor has poor
outlook. Why risk industrial ups and
downs to make a doubtful ten per
cent when you can make eight and a
commission and take no risk?
Mr.. Brisbane is usually clear
thinker and clear writer, but he does
not always think right. In this in
stance it is entirely probable that
there is q side to the question to which
he has given but little thought.
Because the Treasury Department
is able to float $150,000,0O0 of very
short-term Treasury certificates, {of
the tax-exempt brand) at 31a per cent
that is not necessarily an indication
that there is to be:a rivival of busi-
ness, that money will be cheaper or
that labor will be employed. Rather,
it is an indication Of preference in in
vestment. MIR. Brisbane more nearly
struck the situation when he said,
"Why risk industrial ups and downs
to make dubtful ten per cent" There
is not a lack of opportunities for
placing loans at high interest rates
and upon security that is ordinarily
termed first class. For months the
farmers have been pleading for loans
secured by high class farm lands and
have been willing to pay high rates
Of interest in order to obtain the
loans, but the money has been denied
them. They have not thought that
high interest rates were just, but they
have been willing to pay because, in
many cases, it would have prevented
the sacrifice of property. They have
been willing to pledge their property
until such time as they could by their
labor and production pay the bounty
that these terrific economic conditions
have wrested from them. So, it has
not been question for the financier
as to where he could find a borrower,
but has been question of selection
of borrowers. II
He has preferred the Government
obligations tax-exempt, with low in
terest return, because eh knows the
security is good so long as the Gov
ernment lasts. While with the other
elias sof loans, re realized that we have
not yet finally passed through the
period of exploitation and he does not
know in what condition this policy of
exploitation will leave the security he
might make on other loans. Again, it |
would be against the rules of the game
to make too many loans throughout
the country where it would put money
into circulation. Therefore, if he is to
stay within the circle and play the
game with his crowd he must not loan
his money to the rank and file until
permission is given. This makes it
comparatively easy for Mr.. Mellon to
go to these holders of vast amounts
of idle wealth and tell them that it is
better for them to take a small return
for short time than let their money
lie idle, realizing no return whatever.
Too, it might cause the people of the
country to have a more charitable
view of our money lords. 80 +
~, Who Got the Profit? 4
A recent New York news item ap-
in the Washington Times,
says: ~. I = 49,"
Holders Of Liberty Bonds are ST.
600, 100000 richer today than they
We're last September. Recent spectac-
ular movements in the stock market
have taken the spotlight but the rise
Of liberty bonds has been steadily 60
ing forward until today most issues |
We're lowering around par, while Vic
tory war bonds were slightly above
par. In the issues of Liberty bonds the
advances in the last nine months have
been from $40 to. $1S 500 bond.
Some SIS 200, ,O00, 900 Liberty bond
Oblipators ara IN thn hands ~ fhn