The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-06-13
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controlled exclusively by very few
individual money-hoarders, should be
entitled to use national credit to the
extent Of two and one-half times the
amount it has invested in the securi-
ties of the federal government, at the
trifling rate of one-half Of one per
cent, the federal government to be
bound to redeem said credit in gold,
when demanded.
According to this law, the Federal
Reserve Board, consisting of seven
members, is appointed by the Presi-
dent of the United States. Under pres
emit conditions. this means that those
members are appointed by Wall Street
because big business furnished the
campaign funds for both the Repub-
lican and Democratic candidates for
the presidency. Yet this marvellous
law provides that the regulation" of
the credit Of the nation shall be
vested in the hands of this Federal
Reserve Board-which means, that
the Federal Reserve Board has the
power to dictate the rate of Interest
which any group In America must pay
for credit.
Robbed Farmers.
The passing Of this Federal Reserve
Banking law marks the turning point
in the economic structure of our ma
ton. No matter under what pretext
it was passed, it has been used In
every respect to enrich the money
trust and to wiring the very life-blood
out of the producing classes.
The farmers of the United States
have felt very heavily the results of
this law because under its provisions
they have been robbed during recent
years of the astonishing amount of
eighteen billions Of dollars.
No wonder the farmers are bank
rupt and deserving the land which
they have titled for their lifetime, at
the rate Of over 100000 each month.
How It Is Done.
To make this issue clear, it is nee
essary to point out in brief how rob-
bling Of farmers has taken place. Dur
ing the war period the Federal Re
serve Board set out to encourage the
farmers of the United States to en-
large their capacity Of production to
the utmost limit. Propaganda for this
purpose was used in the press, and the
rural districts were flooded with pam
phlets to this effect. Every little bank
was turned into a propaganda center
to this end, and "The winning Of the
war" was said to be dependent upon
increased agricultural production, and
there was no limit to the credit ex-
tended to the farmers for purchasing
land they did not need and to pur-
chase all possible farming implements
with which the market was promptly
flooded.
In general, the farming class swal-
lowed this well-sugared bait. Consi-
dering it their patriotic duty, they ran
into an Indebtedness out Of all pro-
portion to their ability to pay. But
no sooner was the war over than the
Federal Reserve Board turned the
page.
Farmers Foot Bill.
The Allies and the European mer-
chants were unable to meet their OBJ
legations contracted with the export
ers Of the United States. The Ameri-
can exporters en- masse faced eco
nomic ruin and instead of letting them
pay for their gambling in foreign
markets, the Federal Reserve Board
set out to make the workers and farm
ers of United States foot the bill Of
this speculation.
The notorious open shop" on.
slaught was organized to reduce the
standard of living of the industrial
workers, and the deflation policy was
inaugurated against the farmers.
The credits extended to the farmers
were mercilessly called in and the
prices of the agricultural products
we're slashed far below the cost of
production. Over one billion dollars
was withdrawn from circulation with
In ten months, and complete panic
was instituted to effectively rob the
ldIlueIbs
Federal Reserve Took Pill.
Then once more Congress was put
to work In the name Of "agricultur-
al relief" law was passed, whereby
the Federal Reserve Banking System
could relieve itself Of the huge pile
of worthless mortgages taken on the
desert lands which had been sold at
high prices to The farmers during the
war boom.
Under this law the farmers were
compelled, in renewing their notes to
give additional mortgages, this time
on their cultivated lands, cattle. and
implements.
A tremendous amount OF worthless