The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-02-15
ATTACKS INTEREST

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OF letters a. may be necess,
ATTACKS INTEREST
Bismarck, N. D., Feb. Z, 1892
Editor, Tribune:
Since 1t is pretty well recognized
by everybody that the whole civil
lied world suffers financial depres-
sion, it Is naturally the most dis
cussed subject Of all at the present
time. The best brains in the coun-
try are presenting their views on the
problem, through press articles, ra-
do breakfasts and in the hall of
congress. So why not I?
v see the capitalistic system UNDER
Z going the severest trial OF It's history.
But. hear someone say, when we
nave operated under the capitalistic
plan for hundreds of years success
fully, why does 1t break down now?
The answer iS-the excessive rate of
interest, usury, and the riotous abuse
Of credit Salesmanship, volume In
commerce and production, has come
10 be religion In our economic and
business world. AS If the sky were
the only limit we have striven blind
~ TO gain fortunes on borrowed CAPT.
I tai, forgetting the everlasting gnaw-
Y Ing at our vitals by the destructive
worm-intereSt.
The early colonists Of the New
England states by their Industrious
ness and thrift soon accumulated
some capital. AS the settlements ex-
tended westward and needed money
TO develop new activities, it was fur
nlsned by the New Englanders at in
terest. The eastern insurance COM
panies exploited the new territories
IN the west and when their profits
accumulated faster than their i'm
mediate needs they organized loan
agencies to finance the growing west.
SO eager were the people in their
quest for new empires Of industry
ana wealth that they borrowed more
and more In order to create volume
and get rich quick. The money lend
ers were glad to furnish the ambi-
tlous frontiersmen with the necessary
finance so long as they considered
the credit good, but their terms were
often shameless. It was not uncom-
mon here in North Dakota in the
early days for the borrower to have
TO give a note for 500 drawing in
terest at 1920 or 12Go on the whole
whole amount, although he got only
$50 or $50 actual cash.
Recently, when the automobile in
duStry reached the saturation point.
that is, couldn't sell fast enough.
they organized separate financing
companies and inaugurated the So
called installment payment plan.
This naturally added to the cost of
the machines and in addition inter-
est on the deferred time payments.
Private Finance Favored
Then, finally, the World war with
Its reckless spending had to be fl
nanced, again on credit, and enor-
nous profiteering by private money
lenders and manufacturers resulted.
This Is what broke the camel's back.
The great money lenders, through
the international bankers, had al
ready cornered most of the wealth
prior to the late war, otherwise they
could not have financed it. Instead
OF issuing their own money ana fl
nancing themselves, the governments
of the world have always granted
this privilege to private financers
at huge commissions and interest.
Now the big question is whether
the people Of the various nations
will ever be able to pay the war re-
parations required by the creditors,
which amount to billions upon bill
lions. So serious has the problem !
become that unless speedy remedy |
is found IAN almost complete break |
down will hit the world within two I
months" according to the prediction
OF Sir George Paish, noted British |
economist, and other very high auth
critics.
To bring the question closer home
let us see what the situation is con-
fronting North Dakota: In the Bis
marck Tribune for November /, 1929,
appeared an article being a report of
David L. Wickens, farm specialist Of
the federal bureau of agricultural
economics, which presents these
gloomy figures: farm mortgage in
debtedness in all U. S. A., January /,
1928, SO, 468, 000, 10000 and in North
0dhOtS1, ~1oV,VVV,VVV.OU. xAA1A IAC OAAOWo
such mortgage indebtedness is in
creasing. The interest alone on
these $50 millions at ~ amounts to
$l6,100, 100000 annually.
Add to this the chattel mortgages
on personal property, open accounts,
taxes, the millions lost in closed
banks North Dakota in 1920 had 719
state banks: at present we do we'll
to count 1901 and you must admit
the situation Is not very encouraging.
Is there anyone optimistic enough to
believe the North Dakota farmers will
ever be able to catch up, redeem their
debt-ridden homes under even the
most favorable conditions OF farm
ing such as we enjoyed the few years
before the war? This applies to
North Dakota. Nationally, the as
pect is not any brighter.
"Coin" Harvey makes this state
ment: 1--WE, therefore, have in the
United States interest bearing debts
to the amount Of as much as $50
billion dollars, as much as the falr
cash value of all assessable property
in the United States.
1.-THE annual average interest at
six per cent, on this $50 billion dol
lars is about nine billion dollars,
more than all the money there is in
the United States. The actual
amount of money in existence in the
United States is about eight billion
dollars, SO reported by the United
States Treasurer"
No Cause to Boast
It is characteristic with the adj
vocates of the prevailing capitals ,
tic system to boast Of the great
achievements and the high standard
of living developed under it, partic- .
ularly in the United States True,
we have accomplished wonderful
things. But not any more than
should be expected considering our
marvellous resources, perhaps The
enormous credits Of this country
have warranted the great expendl-
lures. But surely no one would say
~ al tt~icI