The Sauk Centre herald., 1930-11-20
and by some considerable appro-
priations of federal money.
Reserve Plans and Funds

and by some considerable appro-
priations of federal money.
Reserve Plans and Funds
The second is that the federal
government should furnish to state
governments and to local govern
ments a compelling example in the
accumulation Of a reservoir of plans
and of funds for the execution on
large scale of public works such
as buildings and waterways and
roads and harbor improvements and
the like in times of unemployment
emergency.
The third is that the federal gov
ernment should blaze the way
toward a survey of all the existing
and prospective possibilities in the
direction of the establishment,
whether by private effort or by
public effort or by both, of sys-
tenn of scientifically calculated in
surance against the miseries caused
to our working population and the
losses caused to our business COM
munity by unemployment crises.
Till these three objectives have
been reached the federal govern
ment cannot be regarded as having
fulfilled its legislative duty in the
emergency now existing.
Attacks Misuse of Credit
believe that legislation can and
should be enacted to prevent as far
as possible the wrongful use of
credit. The new theory of econom-
les that has been expounded in re-
cent years based on the theory that
the way to become prosperous is
to buy what you do not need and
may not be able to pay for is bad
theory and destructive in practice.
It promotes extravaganza and
waste and undermines character.
Buying what we need and can pay
for is good economics and good
morals for the nation as well as for
the individuals. Careful thinkers
have long felt that more careful
outstanding of credit is a para
mount need. Luxuries should be
bought out of capital account and
not with borrowed capital. The ex-
tension of credit for speculation
when speculation assumes the pro-
portions of pure gambling is wrong
full use of credit and a legislative
remedy must be found to curb this
practice. Such a remedy should
aid in preventing periodical cycles
of imitation and defation of the
credit structures with resulting dis
astrous fluctuations Of prices.
Reimbursement Needed
I believe that legislation now in
force is in part responsible for the
maladjustment of the distribution
of the national income. Readjust-
ment is imperatively necessary.
The theory has been advanced
that business and agriculture are
| suffering from overproduction. This
in my opinion is only true in g
limited degree. Initiation Of credit
always stimulates production. The
invention and use of new machin.
cry has also stimulated production
but on the other hand, I believe
we are suffering from under con-
sumption or lack of ability to
buy the goods produced because OF
, the unequal distribution of income
Government statistics reveal thai
from 1919 to 1926 the total value
of farm crops dropped over AZ pei
cent. I venture to say that there
has been no substantial improve
ment in the economic situation Of
our farmers since these reports
were published.
| According to the statistical table
Of the Department of Commerce OF
February, 1927, employment of Ia
Dor dropped 18 per cent from 1920
to 1926. The same report shows