The Tomahawk. [volume] (White Earth, Becker County, Minn.) 1903-192?, 1922-03-09

| aaFsv -
and the Organizations That
Washington, D. C.-Politicians are
surprised at the amount Of sentiment
existing "back home" among their
constituents for reforms in the money
and credit system. The belief Is
widespread, especially among farmers,
that the federal reserve board and the
private banking system are respons-
ihle for the present business .depres-
sion-at least responsible to the extent
of failing to adopt measures which
could have been adopted to mitigate
the worst effects of defation.
But che sentiment for change Is
not merely crystallizing around at
tacks on the federal reserve boards
deflation policy, or around demands
for farmer representation on the re-
serve board. It is far more serious
than that. The entire financial, money
and credit system, as it now exists,
is being challenged. Even the So
called gold standard" for money is
being questioned by individuals and
| groups all over the country, and mem
bers of congress are hearing about it.
The introduction Of the Ladd money
and credit bill seems to have organ
lied and precipitated the present
move. That bill, briefly, would re-
store to the government the sole right
to issue and control money, a privi-
lege now in the hands of the federal
reserve board and the system OF pri-
vate banks which it controls. These
banks, which it is charged form vir-
tual monopoly, now issue our money,
guaranteed and protected by the gov
eminent. The Ladd bill would take
this function entirely out of private
hands and restore it to the govern
| ment. s5es.5 ~ q. q, ~ .sf..z, = :
" OTHER FEATURES.
The other feature Of the .Ladd bill
| is the proposed establishment Of q
government "credit bureau" with
state and local branches throughout
the country. This bureau would i'm
mediately assume control of all the
deposits in the postal savings banks,
which are now turned over by the gov
eminent to private banks. The bill
furthermore raises the amount OF in
terest on postal savings and removes
most of the restrictions which now pre-
| vent these government banks serious
! ly competing with private banks.
| At the outset, therefore, the govern
ment loan bureau would have COM
| mand Of the resources OF the postal
banks, and those resources would be
| many times greater than at present,
due to the higher interest rate pro-
posed and the removal Of limitations
on the amount Of individual deposits.
In fact, the proposition has greatly
alarmed bankers who have looked into
| it. They say. the bill might conceiv-
ably take away the bulk Of the de-
posits now in private banks through
out the country, and give the govern
ment loan bureau command OF all
these resources, = ,=s, IL =.
WOULD. LOAN MONEY. n. ia + 1
The government loan bureau would
loan this money the same as banks,
loaning it through its state and local
branches, on the same kind Of approx
ed security as demanded now by pri-
vate banks, but on much more generous
terms. The. interest rate under the
bill could not exceed per cent, it be-
ing figured by Senator Ladd that the
government could make expenses and
even a profit that could go to lower
| federal taxes. under this rate of in
terest s.. =. +. ,-.. - t.. Z. : :.
The government bureau would loan
| to farmers on land, warehouse re-
ceipts, any kind Of property that has
| a value, or on collateral Persons de-
string to buy land and equipm ent in
order to start. farms could also bor-
| row. Loans would also be made to
public utility corporations, business
men,, industries and others on the
same terms. City wage or salary
workers could borrow to build their
own homes. s5:.. sss
- It will be seen therefor that the bill
would erect system Of credit to COM
pete with the private bank system,
and ON terms that would largely re-
suit in the supplanting Of private
banks. 's s.. ~ ~
LIKE OLD "PoPs."
Sounds like the old Populist and
Greenback agitations, doesn't It? Yet
Ford isn't insane, whatever else he is,
and what is more, he has the backing
in his money ideas OF no less a person
than the famous inventor, Edison, who
is likewise head Of great industry,
one Of the biggest in the country.
No wonder some Of the politicians
are beginning to listen, and that some
Of the bankers, who have awakened to
what is up, are getting nervous.