Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-01-28
WOULD GET CHEAPER MONEY
Editor Askov American:


What is the cause of the present
depression or panic? If we can find
the cause it should not be difficult
to cure, and in the future prevent
similar depressions.
1t seems to me it is the scarcity
OF money, and consequently high
priced money that prevents the
needy from buying the seemingly
surplus of agricultural and industrial
products. l say ''seemingly"-as long
as there is a demand not satisfied
there can be no Srplus. 1t must be
the medium to transfer the surplus to
where it is demanded and needed
which is lacking. and this is not
transportation facilities. The rail
roads and steamships are equipped
and ready to transport and distribute
the worlds products The railroads
are offering service for which there
is no demand. Why? Because there
Is no available money to buy this
service. Money is the recognized
medium to buy this service, and when
money gets scarce it goes ''skyrocket-
ing" like wheat did some years ago
when Joseph Lester ran a corner in
wheat.
If we agree that it is the scarcity of
the medium which we call money
that is the cause of the present de-
preston, then it will be interesting
to find out how we can get more and
cheaper money.
1t is interesting to read H. R. Bucks
opinion in the American of January
21st-except the closing sentence
law fergit it." We must not forget
it. Mr.. Buck shows clearly that in
terest and high interest can not be
borne-unless we have periodical
panics, where large amounts of fail
ures are cancelled and thousands
lose all they have accumulated.
There is a society in Denmark which
Is experimenting in making their
own money, on cooperative basis.
A certain number of farmers pooled
their property and real estate with
mortgages thereon. The association
money which in the beginning cir
,culated in the community and nearby
communities.
Guaranteed collectively by the CO.
operative association this money costs
them just the paper and printing ex-
pense The savings in interest were
used to pay off part of the mortgages
and consequently more paper money
could be issued and so the process
continued until now this cooperative
association is recognized by the state
and its paper money is, to a certain
extent, guaranteed by the Danish Ma
tional Bank.
Now if a cooperative association
can do this, why cannot the govern
ment of the United States (the big
U. S. which is supposed to be CO.
operative association by the People
and for the People, issue money guar
anteed by the natural resources of
the United States for circulation free
of charge against ample securities or
perhaps against a small charge for
administration and control added.
Why can't the United States issue
money against security in the United
States Natural resources in place
OF borrowing from Capitalists? OF
course they can, and there are some
people, also in the United States, that
already begin to see light in that
direction.
Ordinarily money can be borrowed
from the money lenders if the secur-
ity offered is satisfactory, and the Dor
rover is willing to pay the rate OF
interest demanded. However 1t is the
security offered that is the basis OF
the loan Now then if the security
Offered is satisfactory to the money
lender, why should it not be satisfac-
tory to the Government? Is there any
reason to believe that a high rate OF
interest will make the loan more Sc
cure? On the contrary. The Dor
rover having no interest to pay will
be so much better able to make pay
ments on the capital.
What are we going to do about it?
Don't forget it,"
LUDWIG MOSBEK.
Askov, Mimi, Jan. 26, 1882.