White Pine news. [volume] (East Ely, Nev.) 1920-1923, 1923-03-18

Since practically every one u, lhS
sixty-six men present were directors
OF the railways, ard many of them
members of various interlocking rail-
way directorates, the psychology CT
this course is explainable. The in
terstate commerce commission re
sponded obediently and quickly, ad-
vancing rates 40 per cent for the
eastern group of railways, 35 for the
western. 25 for the southern. 20
for the mountain Pacific and
SO 1.3 from one group to another.
Notwithstanding that the eastern adj
vance was a higher percent than 9th
ers, the western and mountain Pacific
rates were so much higher before
this and a previous raise made dur
ing the war that these are still much
higher per ton mile than tho eastern
In direct contradiction to a policy
of making il possible for the west to
be able TO pay these rates the meet
ing in the name of deflation in its next
breath proceeded to take the values
out of farms and farm products and
did net quit until it had squeezed
SIS, 600 out of the value of
American farm lands and $4,000
00C 900 out of their products.
we can restrict credit and expand
production" said Governor Harding,
letting the expansion of production
proceed at a greater rate than the
restriction of credit, and VIZ are then
working along in the right diree-
ton"
At that time the elevators were
bursting with grain, farmers had
more on hand than they could store
and the railways were crying Car
shortage" The effects of the order
were to knock the bottom out of
every kind of market for farm prod
ucts, when, as will be recalled by
everyone, a raneher could not get an
offer for a fat steer, when wool drop
ped in one day from rs cents to so
low a level hat no quotation what.
ever could be had. and everything
else was the same. This enormous
overplus of products, encouraged and
brought about by patriotic appeals
as well a. in what appeared to be a
certainty of fair prices. had to be
moved at the amazingly high rate
granted by the interstate commerce
commission at the command of the
federal reserve board, and the prod
ucts could not sell for enough to pay
the freight. forgetting and ignoring
any element of cost of production.
Liberty bonds-those sacred prom
Uses of the government TO pay back to
its patriotic citizens 100 cents on the
dollar for the money that they had
loaned in the hour of national peril,
for the purchase of which these pa
triots had literally sweat blood and
for the purchase of which the boys
we're lined up to pay over their $50
a month as they came out OF the
trenches to receive their pay en-.
velopes-these same Liberty bonds
that you have heard so much about
and which were not to help the bank.
ers any as they were bought, but
which were put up as collateral for
the money to buy them-they were
not to be exempt from the ukase OF
Governor Harding.
Are customers notes secured by
Liberty bonds exempt from the ap.
~plication of this order?" asked Bank
er Oscar Wells of the advisory coun
ell.
They are not" replied Banker w
J. Bailey of Kansas City, a class A
director.
So Liberty bond prices were forced
down from twelve to fifteen points
and, as the Records report goes on
the national government bought In
5000. 900, 900 of it's own dishonest
promises to pay and the secretary OF
the treasury boosted of the money
that had been saved in doing so.
And at these low prices hundreds OF
millions OF bonds were bought in by
big estates and big institutions, with
heavy losses To innocent original pur
chasers."
Banker Wesley c. Mcdowell, a
class A director of the Minneapolis
federal reserve bank. objected to the
increase of rates. The federal re
serve bank of Minneapolis is making
$4,000 a day said Mr.. Mcdowell
"Is that profteering when you have
been using our money without inter
est ever since II started? Is the fed
eral reserve board going to be put In
the same class with the sugar profit
Ger and the manufacturer who has
been making big money?
We want to stop some of this high
finance in politics, in business"
1t was shown in several addresses,
delivered in a self-laudatory way.
that the federal reserve system had
proved a money-maker and vas in
the field of commercial banking on
an immense scale. II was created &c
..va wNA.E.. -. -