The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1924-11-21
Money and Credits


thu American Government 4 dozen
or fifteen years ago there was TOO
well-foundcd belief that the railroads
were running the country. Nova
days one hears that it is Wall Street
Too few people TO figure II ont thar
the business development OF the
country has been so great that local
and Statq banks are unable TO meet
the demand for capital in the sums
required. This has led 10 the massing
OF the money OF the country into
few large banking concerns in the
financial district OF New York City
SONG OF these banks are on Wall
Street while others are on adjoining
or nearby thoroughfares. wall
Street thus appears TO be hgura-
tive term.
The Government itself has found
it necessary to provide the same kind
OF an elastic currency" as that which
is represented by the elastic crodl thai
is handled by private banking inter
csts in New York City. The Federal
Reserve System cooperates with the
great banking interests and these pub
lie and pliivate agencies place money
and credits in different parts OF the
country where it is most needed.
There has been good deal OF com
plant to the effect that manufacturing
regions have been favored while argi-
cultural sections OF tho country have
suffered for want OF sufficient credit
facilities. However. in July, the Fed
eral Farm Loan Bureau reported that
i, had made 1921 loans. amounting
to 81 4l5.00O.O0O The Federal Bureau
and the Joint Stock Lark Banks have
done their utmost to provide for the
demand for farm loans.
Government and Business
What shall be the attitude OF Gov
crnment towards business" asks Mr..
Bernard Baruch former head OF the
War Industries Board He rccitcs the
fact tina, during the war we built
great committees OF industry some
of which have remained in the form
of associations and he adds tina, these
associations. are capable OF great good
and possible great harm "A grave
question" according TO Mr. Baruch
is: Shall tn Sherman antitrust law
prevent such great combinations and
associations. or shall business be per-
mitted TO combine for better produc-
ton and distribution thereby cheaper
ing both and resulting in lower prices
for the consumer And il they are
permitted to function what rcgula-
tory or supervisory power should be
exercised"
In connection with the above. il is
recent history that the Department
OF Commerce has used its big stick
to correct the evils in industrial and
trade associations whqn some OF these
organizations attempt to fix prices
and to control the markets to the de-
triment and expense Of the public
A Court of Commerce
One hundred and fifty members
OF the War Industries Board have
discussed the establishment OF Fed
eral court OF commerce The idea
contained in the proposal is that bust
ness men could go before such a |
court with the suggestion that they
Gu, down production and fix a price
upon their wares. This is carrying
the Hoover idea a good deal far,h-
err than thu Secretary OF Commerce
would likely agree to, since Mr..
Hoover's plans likely contemplate
that the industries OF the country
should voluntarily arrange their meth
DDS OF production in such a way ;
to provide an oven keel OF employ
ment throughout the year. instead OF
the present periods OF rushing and Of
loafing.
Proponents OF court OF commerce
seem to think that they have sc1:e
thing better than the Fedora, Trade
Commission which they appear 10 oh
Ject to because it is an "inquisitorial
body 1t is true that the Commission
seeks TO find out what is among
the industries and trades. After that
it attempts to apply its remedies.
Even though the Federal Trade Com
mission has not always been popular
its methods are nevertheless in high
favor as compared with those meth
DDS enforced by the War Industries
Board when it fixed prices and jumbl-
cd production by trying to regulate
both.
Capitalistic Socialism
Strange as it may seem the very
critics OF too much government in
business appear as the champions OF
measures that would make the Fed
eral Government pliable TO their