The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-11-19
By Fl. M. WICKS.

BY I'll. M. WlCkS.
How all departments of the United
States government in their statistical
reports distort facts to perpetuate the
fiction Of Coolidge prosperity" is
again exemplified by the Federal Re-
serve Bulletin for October. The de-
artment of commerce, under Herbert
Hoover, initiated the policy of fall
styling figures for the political pur-
POSES of the republican administra-
ton Andrew w. MELONS treasury
department has long practiced such
deception and the department of la
Dor, under MELONS, man, James j..
Davis, has been exposed time and
again by The DAILY WORKER for
it's purposeful Juggling of figures in
order to maintain illusions regarding
the prosperity of the American work
ing class.
Falsifying Bank Loans.
Now comes the statistical staff of
the Federal Reserve Banks with its
contribution to boosting prosperity il
lusions. There has been a pronounced
decline in country bank loans. The
Federal Reserve Bulletin u. 690) in
terprets it as follows:
"This decline in loans is due part
ly to the fact that the farmers
have liquidated some of their loans
contracted earlier and in part to
the fact that their borrowings at
the banks in the spring Of this year
were somewhat smaller than the
year before"
Further on it is explained that Gin
the Southeastern states this dimuni-
ton Of agricultural loans was largely
due to smaller use of fertilizers by
cotton growers, who, in view of last
years. large crop and low prices and
the desirability of a relatively small
crop this year, were not inclined to
make large expenditures in the pro-
duction of cotton"
The statement that many farmers
have liquidated their debts is not sup
ported by any facts whatsoever. The
correct Interpretation of the decline
in bank loans in the agricultural areas
Of both the Middle West and the
South is to be found in the fact that
the farmers have exhausted their
credit, their property is plastered to
the limit with mortgages, and hence
the country bankers dare not place
further loans at their disposal. This
condition is reflected in smaller Dor
rowings of the small country banks
from the Federal Reserve Banks.
Deposits Also Fall.
When the farmers are prosperous
the country banks record the fact in
two-fold manner. There is an
increase of loans for spring planting
and also in the fall because of the
seasonal requirements for credit and
currency arising in connection with
the harvesting of marketing of crops.
There is also an increase in de-
posits after the marketing of the
crops on the part of the more favor
ably situated elements of the agricul-
tural population. But the report of
the Federal Reserve also shows that
"this decline in loans has been &C.
cornpanied by a reduction in their
deposits"
The volume of the decline is sum-
med up as follows:
discounts for member banks
outside of the leading cities in eight
districts, largely agricultural in
character, at the mid-year peak on
July 81 were S44,0O0,O00 lower than
in 1925 and lower than in any other
recent year"
1t should be borne in mind that it
is the function of the government
compilers Of statistics to present po-
litical arguments for the administra-
ton, rather than analyze economic
conditions, hence the eight districts
were probably those that would show
the most favorable returns, while
those that would show the real pic
ture were ignored.
Corn Production Lower.
That the corn crisis still continues
and is equally as severe, if not more
so, than the cotton crisis, is revealed
in the same document:
''The indicated production of corn