Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-03-10
RESTORE THE
BUYING POWER
CONTINUED from Page u

Continued from Page -
The government, although not
solely to blame for this concentration
OF wealth, is responsible for high
freight rates that the farmer must
pay. Tariff inequality which compels
the farmer to sell at cheap price
and buy at high price because he
is an exporter is another attack on
his income for the benefit of indus
try. High interest rates and unstable
value of the dollar force the farmer
to pay taxes and interest with a dol
lar so per cent dearer than five years
ago. The farmer was losing money
during the so-called prosperity years
of 1923 to 1880.
Additional Mortgages.
purchasing power of the mass of
the people also has been destroyed
by bankers underwriting and ped
ding $1,000. OOO, 900 of foreign stocks
and bonds. From 1920 to 1880. they
also underworld and peddled $4,000
0OO. 900 of American stocks and bonds.
We have heard much about foreign
bonds but little about the fact that
four times more of new American Sc
curities were sold here. These S7O.-
900 100000 of new stocks and bonds
were additional mortgages against the
future income of the people.
Capital now seems to believe that
it can collect income on its fictitious
capitalization by continued attack on
the income of the people, through
sales tax. further deflation of prices
and reductions of wages. This means
reduction in the American standard
of living. Our high standard of living
did not bring on the depression.
Consultations of industry, trans
portation and finance. permitted by
the government. have not been in
the interests of efficiency and re-
duced production costs. Rather, they
have been banking consultations, to
sell more stocks and bonds and es-
tablish monopolies and monopolistlc
prices. Disregard of restrictions as
to soundness of capital and limlta-
ton of earnings was one of the larg-
est factors i'm bringing on present de-
preston.
Better Business Methods Needed.
The need of new laws relating to
corporations in industry and COM
merce and for control of corpora
tions, at least so far as capital issues
and consultations are concerned. by
the government is urgent. Such con-
troll will give greater confidence in
corporate investments, distribute eX-
cessive earnings in wages, lend sta
bility to industry and serve the pur-
poses of justice and honest dealing
in the business world
The inevitable stagnation of COM
merce resulting from Incompatible
policies of exporting capital and at
the same time increasing tariffs in
creased unemployment and decreas-
ed buying power. As result of these
policies. aided by unwise credit in
flation, we drifted into the inevitable
collapse and depression. We have
vast armies of unemployed labor. We
have default in debts public, and pri-
Ndte, paralysis Ol our circuit SyStSll,
increase in the value of money and
growing intensity and force of the
depression.
1t is not true that our troubles
are due to mistakes of Europe. De-
preston started here and increased
in force for five months before it
hit Europe. Now the question is how
to overcome depression, restore pros
perity and balance the budget Many
believe the best way to balance the
budget is to raise taxes and reduce
expenditures of the government. But
most government expenditures are
fixed charges to pay for our part in
the World war and other wars. The
government cannot restore prosperity
by giving from the treasury money
raised by taxes, but it can to a large
extent restore prosperity and bal
anced budget by policies that will
foster commerce, restore incomes and
revive the purchasing power of the
people,