The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-01-27
Imitation

i thiA the light Of . new day q the
golden glow Of passing day7
In Congress . bill No. 030a vas In
troduced by Mr.. steagall. This Bill,
provides for imitation In Z moderate
way. it, intentions are mild. In my
judgement no initiation viii take place
until the regular session Of Congress
meets In the fall Of 1893.
During Ill 1882 the government IS
sued short term notes. which In q
sense q imitation in itself. Between
five and six billion dollars worth Of
these notes have been Issued. The
banks Of the country have bought
these short term notes and treasury
certificates When banks buy these
short term notes they can immedi-
atsly rediscount them through the
Federal Reserve. So the whole thing
means that the government has been
borrowing money from the banks to
run its business by issuing notes, the
banks in turn have borrowed from the
Federal Reserve. Recent figures show
the Federal Reserve has about one
billion nine hundred thousand dol.
lars worth Of government bonds IN
Its possession. Banks OF the country
are about at the saturation point
whore no further bonds to q large ex-
tent can be absorbed by the banking
interests. During 1888 large amount
Of government financing and re-
financing must take place This will
be an added burden for the banks OF
the country to absorb but 1t can be
handled In regular way. However
the public will not be absorbing these
new issues. This In itself is initiation
| Currency initiation occurred In Ger
many in 1929. During the initiation
period before the final collapse came
you could buy mic, comfortable
home for an American five dollar bill.
The value of the mark decreased. One
dollar OF American money was worth
q trillion marks.
Utilities, industries, banking insti-
tutionS. governments. federal. state
and local went bankrupt.
| All the stocks and bonds issued BY
these organizations became worthless
About thirty five million people were
unemployed out Of a total population
Of about sixty million.
Poverty. starvation and collapse
Of everything occurred. The smart
financiers Of Germany that foresaw
and took inventory Of the situation in
advance and bought foreign exchange
and reserved what capital they had
until the peak Of imitation was reach
ed. For fifty thousand dollars you
could have bought twenty-five million
dollars worth OF industrial plants OF
Germany.
Corporations, banks, governments.
national. state and local ill printed
marks. There were forgers Of every
description printing marks.
1y . governmental decree they de-
clayed Ill existing marks outstanding
Of no value and the government took
. mortgage on Ill tho homes and land
Of Germany and issued q new cur
rency called the "Rentenmark." They
gave one Of these marks to the people
/ Of Germany for every trillion old
marks they then owned. From that
point sterilization took place. The
results: All the industries In Ger.
many were highly inflated with fund
ed debt. such - stocks. bank loans.
etc. During tho initiation period Ill
these firms. corporations ana individ.
uals went bankrupt.
They wiped out al their debts and
the property ct fabulously low prices.
From 1924 TO 1879 after stabilisation
was established Germany had q New
Deav . new fresh start.
Our American tax bill In the United
States y about fifteen billion dollars
. year. Our government, national,
state and local and corporations, have
such . large funded debt outstanding,
such Is stock certificates. bonds.
loans etc. The people Of this country
have their salaries mortgaeed and
their homes nlortgaged for the next
three to five years and there q no
hope Of meeting these oolieaticnx
Initiation In this country u necessary.
How far It will 80 = everybody'S guess.
! wonder L those who encourage In
flatton 1t the present time Will have
the power 70 stop It ct the right time,
- that Il VIII not get beyond control
4 few days ago presideut Hoover
recommended to ConSreas Z Morator-
lum "a the payments OF debts. ohli-
| cations and liabilities on coepoes-
tious, industries Of every description
also individuals. Perhaps It viii BE- :
| Ooo4 thing. The shove = Just : few
LEI the high pots touched GA what
tack place IN Germany during the n.
y1stion period. ! could sey much
u0ge. both draw and express con.
clu1ions but that q foe the LEGISLATORS
Iof the country to do. they are a---
poee6 to know their business and &c
that the country stands On . firm
bAsos and 10 pass lava % keep the
people prosperous and happy.
This replies to Ill letters written me.
WILLIAM A. HUGHES.
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