davidaulloa/AmericanStories huggingface dataset:
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21

pered in the crisis by its intimate
relations with the Government. II
had been obliged TO adapt its poll
cies TO suit the policy of the Treas
ury, with the result that the Re-
serve banks were already lar gone
on the course OF imitation before
the crisis was reached. although the
very purpose OF the Reserve banks
was TO hold resources in reserve Tor
crises. The attacks which they have
suffered, the attempt on all sides
to drag them into politics. and the
proposals which are made TO re-
organize the S! stem in ways that
would make it more serviceable il
politics, all show the inherent weak
ness OF any banking system having
a governmental connection. Every
thing With which the Government
has TO do becomes involved iu poll
tics. and subject to partisan con.
troversies aud Misrepresentation.
NO banking system can function
effectively Under such conditions.
The moro deeply the banks are
drawn into politics and admins
tered with p view 10 political con.
siderations, the more costly will lie
the results 10 the public.
AS already stated, the pressure
OF the Treasury upon the Reserve
banks TO assist i'll floating a public
loan at All sbnor,nalIy low rate, had
TIE effect Of Gripping the bank,
ID The emergency service Tor which
they were planned. and cost the
country . far grca.sr sum in the
end than the Treasury loan would
have cost at market rates. The ia.
terests OF the public have suffered
every time the Government haa
meddled with banking from The
time OF the first Bank OF the United
States TO the present day.
1t IS significant that although TIA
Congress appointed the Joint CONF
n1ittee OF Agricultural Inquiry. can.
sisting OF six members OF the Sen.
ate and six members Of the House. /
70 investigate the conduct of the i
Reserve banks during The crisis. I
and this Committee made an az. !!
haustiye report to which the names
OF the full committee MEMBERSHIP
were appended, practically no at.
tention has been given to the re.
port by members OF Congress or
the active politicians OF either party.
The findings OF the report are ID.
agreement with the foresoirE re-
view,; but even some OF the COM
rnitiee members who signed them
have disregsrded them il their ut.,
tfralses slnse. ~ss-------- Z : - 4.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21
hebron

The November copy Of the lie
bronian" is III the hands OF the stu
dents. 4 picture Of the three Hebron
football teams lined up on the field is
one Of the features The cut IL es-
pecially clear and shows Sturtevan:
Hall. Atwood Hall, and the Gym %
II fine advantage. The November
Number is devoted in the greator
part 10 football. containing q rcsum"
Of the University of Maine Freshmen
and Kents fIill, Colby Fresh. Maine
Central Institute, Bowdoin Freshmen
games. There is panoramic view
of tie opening kick of Of the kent'S
Hill game. taken from the steps 81
Sturtevant Hall. which shows The i'm
mense crowd and the jumbo Of ma
chimes impressiveiy.
A long article by James Broe. 'es.
pays tribute to the President OF the
Board Of Trustees. Mr. +. .. Stanley.
donor OF the New Hebron Arena :
A picture Of Mr. STANLEY and on" ot
the Arena. now under ConstruC tiun.
supplements the article.
The Literary department Of this
issue is very good. THE Providers of
the Night" by Kenneth Green, 20;
~ Bad Night" by G Stewart. 80
"A Study in Horror" Jy Edward
jeremiah. PC: The Ghosts Walk"
by Kenneth Eosworthy, 20, are the
best stories.
Eugene Vail. Athletic Editor, wrote
the Editorial "Srhool Spirit" which
is very good. The advantages to the
student of possessing heartfelt re-
gard and desire TO benefit his
school are enumerated and certainly
should have i valuable effect on the
readers. A satire on the "IlehroI
Youth is presented without name
and will probably be doubted by
those who watched the Hebron pro-
ducts against the Coburuite LIST Sat-
lUdaE.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21
FINANCIAL NEWS

fetal rains in Arfentina were reported,
and there were more optimistic reports
about the wheat yield in Australia.
The wheat market here closed heavy.
l:4ss and May 1.574 to 1.57s. with corn
II to II cents off. cats 90 ! to 1c down,
and provisions varying from 1ec set
back to 35c gain.
7 Both at the opening and the clos
ing the wheat market here showed
pronounced weakness. with buying
power for the time being plainly mad
equate to absorb the volume of offer
inKs. Aside FROM the effect of bearish
rews from Liverpool and from Argen-
tina and Australia, another weight on
the market was a crop estimate By
Canadian rsilrod oniciis SUI gesting
that 50.g09.00D bushels more wheat had
been raised in Manitoba, Saskatchewan
and Alberta than was indicated by the
latest government forecast.
Rallies which took place at times
IN the wheat market were to some ex-
tent based on yotice of immense ex-
potts of domestic wheat during Octo-
Der. II was asserted in some quarters
that thee xport figures pointed to a
likelihood that By January l the total
1928 surplus in the United states
would be decreased about four-fifths
Gossip that France was soon to re-
move the import duty on wheat was
also given attention.
Country offerings of corn to arrive
showed a moderate increase. This cir
cumstance together with the fact that
industrial buyers here withdrew from
the market did good deal 20 empha-
size the downward trend of corn val
ues. oats sympathiZed with the weak
ness Of corn and wheat
Provisions were irregular as re-
suit of lower prices for grain con-
ficting with an upward trend in hog
values,
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21
THE FALL OF PRICES

1t is important to understand that
The volume OF Reserve bank credit
and of member bank credit con
tinued 10 increase throughout and
alter the advance OF discount rates
TO the highest point, anU after the
general fail Of prices had begun.
The prices OF live stock began
TO decline m the latter part OF 1910,
as exports Tell off. Many farmers
lost money on the cattle and hogs
marketed in the Winter OF 1919 and
the following Spring. In March
banking and financial crisis oc-
CURED in Japan, where imitation had
been running about such course
as in the United States, and the silk
industry and trade in the United
States were seriously affected. In
May prices broke on number OF
staple commodities. A: the wool
auction in Boston the 10th prices
we're 20 10 80 per cert lower than
they had been tip to that time. The
John Wanamaker store in New
YORK startled trade circles through
out the country by advertising a
sensational cut ON everything in
stock. Cancellations became num-
erous in textile goods and shoes,
and the reason vas not that IneT-
chants could not get credit. but that
sales were falling off. The Bureau
OF Labor price tables for JUNO
showed the first drop in the general
index number. clothes and clothing
falling from 328 to 314. farm prod
ucts from 24l to 237, building ma
terials from 1913 to US. and all
cou,modities' iron, 247 to 243. For
July the index number was al,
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21

! for August 81 and for September
| 20. This was tho general down
ward movement. and as yet Their,
had been 10 reduction in thl vol
umc OF bank loans.
The Cause of The Crisis
The crisis was not caused by Z
contraction OF credit but by The
iaIl OF prices. which was genera
over the world and due 10 the dis.
organization OF industry in Europe
and the inability oil the European
populations to take their accus
toned quantities or the products oi
othct countries.
Once prices began to fall, the ell
tire situation changed from what
it was while prices were rising. In
stead OF an apparent scarcity oi
goods there developed a plethora
1t appeared then that thef: had
oc:a speculation in goo Is as we'll
as i'll stocks and lands. and as the
SPECTATORS saw their margins van
ishing they threw what they had
on the markets, contributing 10 the
Decentralization. Instead OF being
oveT-vcisitcd on the buying side,
as had been the case for several
years, the markets were over
weighted CT the selling side, for
buyers naturally held off while pri-
Cos were falling.
OF course there were many in.
stances OF borrowers Unable 10 re.
new t-cir lesfs. or required to re-
duce m-n. The real cau,e OF their
trouble. however, was that they
were doing business OIL margins and
the decline OF prices had reduced
their margins until the loans they
had outstanding were not veil &c.
cured. Cruer such conditions
banks are obliged TO ask for more
security or partial payment. That
is always a risk OF doing business
with borrowed capital risk which
men take for the sak4 OF the gains
realized when prices go the other
way. For several years prior to
1920 prices had been going Up
ward. and a great many peopfe had
kro~n the fascinating experience
OF making money on marginal 10
vestmentt. The effect was to
weaken the entire business situa-
ton by filing it with traders who
had everything up in margins and
were short OF reserve resources.
This il the fundamental explana1
ton OF every panic and bushes.
crisis th1s ever has occurred.
Danger to the Reserve system
TIE kesifvt System wsj ham J
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21

Niaslow, gave an oyster stew SUP
pc. al his cottage in East Winslow.
Wednesday evening. hich WAS en-
joyed Ivy large number of his
friends from Surrounding towns. \ y
most delightful evening was held
{. F. Ware of Fairfield was in town
on business yesterday.
W. T. Reynolds. Jr. has returned
from 4 hunting Trip in PiscataqHis
County.
Walter Reynolds is having a new
furnace installed in his home on
Halifax street.
aIr. and Mrs. TAYLOR Hooper OF
Bingham are Visiting at the home OF
DIR. and Mrs. Z. c. Hooper.
Sanford Reynolds was business
caller in China Thursday.
Chester Ellis of Augusta was q
business ,1ller in town yesterday.
Mrs. Constant Reynolds was re-
cent business visitor in Waterville.
Mrs. Rosie a. Roundy of this
town. Mrs. Eehecca Weber and son
Eastman of Waterville were recent
visitors at Augusta.
Mrs. Roy Prentiss has returned 70
her home after caring for Mrs. j. w
Preutiss who has been quite i'll.
Mrs Marshall Cole was visitor
Thursday at the home Of her mother
Mrs. Grace Wiggin of Waterville.
- Clayton Hatch of the CUshman
road will leave tomorrow for Ma
chias where he Will pass the Thanks
giving recess.
Sanford Reynolds and L. F. Jealous
We're recent business callers in JEFF
ferson.
Walter/Tobey and Henry I-anders
ware business callers in Palermo
Yesterday
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21
FARM|NCTON

Carl tarnum Of Wilton was brought
before the Pennington municipal
court Thursday at about 10 o'clock.
He was charged with reckless driv-
ing and exceeding the speed limit,
the officer being Deputy Charles
Robbins OF Wilton Farnum was driv-
ing his car about $50 o'clock in the
morning vi Nov. Sth from East Will
ton 10 Pennington when he met a
car driven by G. l.. Lane of Portland.
who is the architect in charge of the
building of the Jay school house.
Farnum managed to get by the Lane
car with only Il slight collision but il,
turning to tho left side Of the road
ran square into Ford. smashing that
car all UP, while damag ing the
Studebaker very little. His case was
continued until Friday. when he will
be sentenced. This is the second
time that Farnum has been brought
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21
CHINA

Alr. and Mrs. d. +. Townc ha, o
closed their summer home here and
S"nr I" Arlington. Mass, whore Ih,y
VIII pahs the winter.
There was d special moetinS OF tie
Dorca9 Circle Wednesday Afternoon
Mis-. Chas. Bailey, who underwent
an operation last week. is improving.
Mr, aud Mrs. Edward Taylor, Mr.
and Mrs. Ralph cauham and two sons
were callers AT Pcrc! Taylor's SUNDAY.
P"rloy Jhurston is building barn
on the lot which he bought Of ". 4.
Palmer.
E1 Drawn shO! n large doe last
week.
Ma Newman Felt Of WhneGeld Wis
&ied her daughter, Mrs. Nealy this
week.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21

the record OF their loans in those
years. The most specific charge
has been that the policy OF delta
ton had its origin in the demands
OF the railway employees for higher
wages to meet the high cost OF
living, which demands were pre-
scented to President Wilson in
August 1917. The President urged
the railway men not to press the
demand and promised to take such
steps as lay in the power OF the
government to lower living costs.
1t is said that he then used his
influence with the Federal Reserve
Board to bring on a fall OF prices.
A consolidated statement OF the
condition of the twelve banks is
published weekly, aud we give be
low the figures ior the bills dis
counted and total earning assets"
at two dates i'll 1919 and two in
1920. The first date, August /,
1919, is selected as just before the
demands OF the railway employees
upon President Wilson were pre-
sented, these demands being COM
monty named as prompting the
adoption OF the policy. The second
daa:e, November 7, 1910, was Just
after the first advance Of discount
rates. which was accompanied by
ample warnings from the Reserve
Board. to the effect that it was
deemed necessary to put a check
upon the constant tendency TO an
increasing volume of bank credit.
The third date. May 7, 1920, is
selected as being about the time the
general decline in commodity prices
began and shortly before the So
called secret meeting was held al I
Reserve headquarters i'll Washing
ton. when according to La Toilette
and Brookhart, the final arrange
mcnts Tor slaughter were made.
The fourth date. November :. 1920.
,e selected because it marks the
high point OF Federal Reserve cred
its, just one year from the date of |
the first advance in discount rates.
Bills discounted consist OF re-
discounts for member banks. Total |
Earning Assets" include reds
counts. bills purchased in the open |
market and government securities
purchased BY the Reserve banks on
their own account. OF course. all |
purchases are a means OF putting
out reserve credits. The figures for |
the four dates are as follows:
TOTAL BILL HOLDINGS
Aas. /. 1919, ss..e,.so.seo: Nov :.
1913. lse.es3.e7s.oco; Nav :. 1870. /.
Ncv. :. 1889, $:,I.s,- Z!
sss,oee.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21
Boston Produce Market
Boston. Nov. 20,

Boston. NOV. ~,
BEEF-Choice whole cattle 15G j.
BCTTEH-Extras 43G 43l; firsts 81
m42.
CHEEsE-Frcsh choiTS 220 -
frsts q Il III.
rORN-No. > yellow l.ii n L.; 1."o
q lao.
EGGS-Ncarby hcnnery bro%-n cx-
tras s. q Sc: white and miSed extras 80
4St; western extras G6 ass.
FLOCR-Sprirg patents l"6-lh.
sacks, special short 9.40I 90; stand
ard S.J0di9.I5
UAY-No timothy pa 2Gl.
LAME-Spring l9H IS.
OATS-Fortv pounds G9u 20.
PORk-Medium backs 35a q 81
POTATOES-Iire Mountains %
G110 pcr 100 pounds; sweets 45o@
800
SCGAR-Amcric&n Sugar Refinery
quotes ga cents in 100-harrcl lots
less per cert. for cash.
EEAI-i90 II.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21
New York Money Market

New York. Nov. 70.
Foreign exchanges steady.
Great Britain. demand 4.62e, cables
4.625, 60-day bills on banks 4.39s.
France. demand 5.2J, cables '.2o3.
Italy. demand 49,. cables $50,
Belgium. demand 49,. cables asa.
Germany. demand "S.Si.
Holland. demand f0.l".
Norway. demand 14.Sn.
Sweden. demand 26.S2.
Denmark, demand 1856.
Switzerland. demand 49,.
Spain. demand 1850.
Greece. demand 1.ISa.
Poland. demand l93.
Czechoslovakia. demand "."'4.
Jugoslavia. demand ,+'s.
Austria. demand .Ooita.
Rumania. demand %.
Argentina, demand "S.l1.
Brazil, demand 1855.
Toxic demand So
Montreal. 100.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21
Hens "Wised Up"
To Automobiles

bloomsbury. Pa, Nov. 20 "a. pr
Although the reason chicken cross
es the road never has been settled 20
the satisfaction of everyone. the ftct
that most fowls attc:upt to get ON the
other side of the highway Is respon-
slbie for thousands Of dollars loss TO
farmers in this part of the state, and
many other sections.
Automobile mortality IS one Of
the chief sources of loss to poultry
men. it is declared. and two protec-
tive steps are being taken. One Is
the removal Of the chicken pens to
points far distant from the road. and
the other the breeding Of birds that
have shown. under observation. n
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21

Company toda, declared the regular
dividends ON the first and secoHd pre-
ferred stocks but lated To take an
action on the common. explaining
that the company had incurred sub
srantiaI loss because OF enforced OPP
GRAFTON of unproductiSe narrow
gauge mileage in mountain territory
and investments in small roads which
have ceased operations. The road S
| financial position. however. was re-
| ported improved becauss of new OPP
Grating economies and continued re-
. investment of surplus income
The Pure Oil Company has com
| pleted new wells in Greek county
| Oklahoma; Boone county,~W West Nir-
i ginia. and Monroe county. Ohio. The
/ Oklahoma well is flowing S24 barrels
| daily and the company also has COM
| pleted another gas well there, max
i ing sixty million feet daily. The
, Boone county well is the company {
! 18th producer in that field.
! Dividends in arrears on the pre-
| ferred stock of the Canadian Car and
! Foundry Company were wiped today
! when the directors called an extra
| dividend of ii per cent in addi-
! ton TO the regular disbursement OF
! ! il percent.
|. Charles Donnelly. president of the
| Northern Pacific. said today the road
| should earn u percent share in its
stock this year and prospects indi.
, Gated better results in 1925. The
| Northern Pacific is in splendid phys
| ical shape" lie added. "and we could
, handle 30 to To percent more bust
! ness without putting strain on the
| property" Net operating income for
| October is estimated at about So
| G06O, COO, gain Of S1.OUO,WD over
/ September and about S4nWo over
. october. 1875.
! st. Louis and San Francisco Rail
| way will earn $40 share OIL the
| common stock this year. according
| to j. II. kearn, president, who said
! freight traffic was heavier than ever
II, before. Business in general may
| be light in December and possibly
! in January and February" he added
but after that look FOR steady i'm
p, provement and a big year i'll 1929.
! The company was doing nothing in
| regard to consultations, he asserted
! The worlds copper production III
/ October Increased about 23Oo,m
| pounds over September. it is calcu-
atled by the American Bureau OF
Metal Statistics. the output totallinG
approximately 12S.50I tons against
/! 1861. Production in the United
! states gained 601S tons. South Amer
lea 1:,J4 tons and Europe 200 tons
! The world output in the first II
months this year showed a decline
to 21O.931 tons from lbs, l"G in
| the same period of 49,.
Mills of the Bethlehem Steel Cor
poration at Sparrow's Point are OPP
Grating at full capacity with orders
F! for steel rails pilinS up on the com
] pany's books. Working forces al
the steel finishing and ingot mills
, have been increased largely. The
shipbuilding plant, however, has raul
ed to share in the revival.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21
TOTAL EARNING ASSETS

! Avg /, 1919, $2,46s,ose, 900; Nov. :
| 1919, S2,e23.20 1000; May :, 1920
SCI $4,000; Nov. 5, 1890, s3,42I,
o55,oo0.
These figures show that instead
OF contraction of credit following
the demands OF the brotherhood
chiefs i'll August, 1919, the volume
OF outs landing reserve bank credi,
constantly increased over a period
OF fifteen months, and al the end
OF that time was nearly one billion
dollars. or about 10 per cent great
er than at the first date named.
Discrimination Against Farmers
Another feature OF the situation
in 1920 is worthy OF attention. II
has been charged that the money
power debated the farmers. with
especial severity. The truth is that
the loans OF Federal Reserve banks
iell most rapidly in the eastern dis
tr'cts, where the paper was chiefly
that OF mercantile houses and in
dustrial companies. Moreover, as
the condition OF these eastern Re-
serve banks became easier they
shifted their lending capacity to the
support OF the western and south
eTn banks. where the loans to farm
erS were chiefly held, thus enabling
them to grant more credit than they
would have been able to out OF their
own resources.
The Federal Reserve Bulletin for
January. 1921, in its review OF the
operations Of the system during
1929, referred to this feature in the
following language:
in'erbank discounting showed q ccnsii-
cradle increase about the end Of April.
when nearly $50 millions Of rediscounted
bills were carried by the Boston. View
York. and Cleveland banks fot seven other
Federal Reserve banks. After a slight re-
oession th.se operations were resumed on
an increasing scale early in August, and
on October 20 the Boston. PHILADELPHIA,
snd<Cleyeisud banks reported a maximum
tor the year Of over 24s mil ions Of bills
hHid rnds. disoornt for eight other Re
serve banks. At the close Of the year
total discounts Of the above three banks
inclCded 1853 millions Of paper di.
counted for i've otlser Reserve banks in the
South and Middle West.
The report of the Joint commis>
sion OF Agricultural Inquiry, crea-
ted By Congress in 1921. and headed
by Congressman Sydney Anderson
OF Minnesota, dealt with this sub.
ject OF discrimination against farm
ers at great length in its report,
and its findings ought to be con-
elusive upon that point. After re-
viewing the testimony tsKen, the
Commission says part H. page
III:
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-11-21
THE FEDERAL RESERVE
SYSTEM

One OF the unfortunate features
n; the late campaign was the repe-
titiou more or less by representa-
t;ves of all the parties OF the change
that the Federal Reserve banks
forced a great deflation OF credit
in lo2o-2l. In every period OF bad
times there has to be goat on
whom the blame can be laid, and
when the great postwar price
siumo came, extending around the
world. and great numbers OF people
in the United States, as elsewhere
suddenly became "hard-up' the
Federal Reserve system. as the
principal reservoir OF credit, was III
position to play that part. .
Although the third party led IN
repeating the charges against, the
Reserve system, the. political ieaa,
e-s OF the other parties did not teel
that they were called upon to de-
fend what they evidently thought
was an unpopular cause. Campaign
managers are not interested in COM
batting popular errors. \ cam.
na;an managers task is to find out
what is unpopular and place the
blame for it on the other party.
The Democratic side speakers gen
orally urged that the crisis came
under a Republican Administrations
w.h;le the Republicans pointed out
,hat the Reserve Board had a hold
over membership from the Demo.
cratic administration, and claimed
that the policy OF deAation was IN
augurated under that adm'i'is'ra-
ton. 81
The truth is that a slump would
. have .come no matter what party
had been in power, and although
the Reserve banks were not able
TO prevent prices from tailing IN
the United States when they were
falling all over the world. or to
save = great many people from the
necessity of taking losses, they
rendered enormous services to the
country during the crisis. II any.
bodv thinks the crisis was as bad
as It might have been. he VIII DO
we'll to think OF what the situat'on
would have been if the loca! banks
from the Atlantic to the Pacific had
suspended cash payments as IN
1907.
The Record of Federal Reserve
Loans.
The best answer 10 the charge
that the Reserve banks forced oe-
Hation in 1920 is BY referring to