The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1922-04-20

employed have reached the 5,0OO,0 OO
mark! violent and abrupt changes
of values" robbed the farmers Of S..
000,0OO,000 in value on a single cropl
Men have been ruined on every hand
suicides and failures have been In
troduced into every community, homes
have been lost and hope has been
shattered, but it has not been advert
ised upon the bill boards of the coun-
try, instead, they have blazoned the
enchanting phrase, "Prosperity is Just
Around the Corner!"
Drawing Big Interest on Bookkeeping
and No Money
With such a condition as this fac
ing the country, and in view of all the
inspired statements of the banking
wizards a. to initiation, and how much
money was in the country during the
period of imitation and the necessity
for imitation, it is pertinent to note
that the total cash in the vaults of
all reporting banks, national and safe
WAS &%|%t
On June 80, 1914-s1, 639,219,OO and
on June 80, 1920Es1,O 76, 1880
In other words, there was over a
half billion dollars more of cash in
the vaults of the reporting banks
national and state-before the in
auguration of the Federal Reserve
System in 1914 than there vas June
80, 1920, when we were in the midst of
imitation. The bankers were doing the
business, not with cash, but with bank
credit. In using bank credit they were
drawing interest on their privileged
system Of bookkeeping.
Another pertinent point: The loans
and discounts, including overdrafts of
all reporting banks, national and
state, was on =
, June 80, 1914-$15, 339, ATS 900 and
on June 30,1920-$31, 365, 1888, 900.
In other words, the debts due the
banks more than doubled from the
period just before the Federal Re-
serve System was inaugurated until
the 3Oth of June, 1920, when we we're
in the midst of imitation. These debts
were created by the extension of bank
credit and the banks were realizing
interest on these paper credits. From
these figures you can begin to realize
the enormous profits which the bank
ers were able to realize by reason of
the special privileges granted to them
by the Federal Reserve Act. At an
average rate of interest of 6 per
centum the interest on these debts
would approximate $4,000, 900 900, half
enough to run our Government dur
ing this period of high taxes. If you
would add to that the interest realiz-
ed off of Government bonds and obi
cations, annually, you would have an
amount that would practically pay the
expenses of the Government. 1t is
hard to see where these institutions
afford any special service that the
Government could not we'll exercise
under proper; administration for the
benefits of all the people and with
out material expense. In other words
by reason of the privileges granted
these banking institutions they are
able to realize an amount of profit al
most sufficient to pay the expenses of
our Government if our Government
were to conduct the same kind of bust
ness. Through these privileges, the
people of this country are contributing
to these banking institutions an
amount they have to pay for the sup
port of the Government. No wonder
they will howl "fatism" or any other
kind of "ism" in order to keep for
themselves these powerful weapons of
economic servitude.
Does the Federal Reserve System
Measure Up?
In this connection we would do we'll
to recall the speech of John C. Colhoon
in the Senate who said:
"Place the money power in the
hands of a combination of a few in
dividuals and they by expanding or
contracting the currency may raise or
sink prices at pleasure; and by pur-
chasing when at the greatest depres-
sion and selling at the greatest eleva-
tor may command the whole property