The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-06-08

lives of individuals
FeeIEHects of throughout the Unit
No, n.ry ed States suddenly
has become matter
that Is attracting attention, and more
and more repercussions are to be noted
In the National Capital. Some OBJ
servers tell me they think it is an
indication that the multifarious agen-
cies that have been set up under the
New Deal are at last in full operation
and their effects are now reaching to
the grass roots of the country. How
ever that may be, it can be stated
without eQuivocation that the so-called
alphabetical soup (the various admin
istrations and boards and commissions
known only by initials) are making
their presence felt for better or for
worse in the lives of individuals.
/ cannot agree with the exaggerated
assertion by leading Republican
politician that 1--WE are subject to Hit
Ter DEGREES from a hundred different
sources" but there seems little doubt
Of vast power being welded by the
various New Deal agencies.
For instance, Harry Hopkins, fed
eral relief administrator, has decreed
that there will be no drought relief
funds for cattle owners supplied by
the federal emergency relief admin
istration unless the holders Of any
mortgages on those cattle agree not
to foreclose such mortgages. And, be
1t said, the mortgage holder who re-
fuses to make such an agreement is
up the we'll known stump. He can
take the cattle, of course, when the
mortgage natures, but if the mortgages
have many months to run, the cattle
are liable to die of starvation in the
meantime. Without attempting to de-
eide the merit of such a policy on the
part of the federal government, the
Illustration shows the power that is
welded from Washington.
The Reconstruction Finance corpora
tfon has been exercising it's influence
with banks for some time. While
RFC officials insist they are not at
tempting to control policies of banks,
1t nevertheless remains as a fact that
they are exercising voting power in
the boards of directors Of numerous
banking institutions. They went so
far in the case of a great Chicago
bank as to insist that the man they
selected be elected by the board as it's
chairman. In addition, through the
Federal Deposit Insurance corpora
ton, the bank policies on loans are
closely watched, and this is happen
ing at time when the President and
some of his advisers are strongly urg-
ing the banks to make loans. From
what 1 know of the banking business,
I imagine few banks will hesitate on
making loans in large amounts pro-
ity to put up that will assure repay
ment Of the funds borrowed.
Under NRA and the numerous
codes, various terms and conditions
are laid down
Typical of for business
How Code Works practlces' Here
case: the code for the graphic arts
Industries has provision prohibiting
extension of credit for longer than
two years. That is, a printing plant
owner or publisher of country news
paper or any one else wanting to buy
linotype machine had been allowed
sometimes as much as five years in
which to pay for expensive equipment
of that kind. Now, however, he must
pay for 1t within two years or the
manufacturer will be a code violator
by selling it on a long term basis.
Thus, 1t is to be seen that the code
exerts an influence on what might
be called the innocent bystander. The
country publisher cannot save up gold
with which to pay for the machinery
because he would be criminal to
have gold under present law.
Again declaring that l am not dis
cussing the merit Of the proposition,
1t remains as a fact that the federal
trade commission is exerting an in
fiuence on the type Of investments in
dividuals make as a result of its con-
troll over the issue and sale of shares
of stock or bonds. OF course, the COM
mission cannot reach a corporation
that is doing business only in its
home state, but the larger corpora
lions engage in business on a broad
er scale than that and the bulk of
shares and bonds, therefore, must not
be issued until the federal trade COM
termined the facts about the corpora
ton that offers them. 1t is a matter
of record, of course, that numerous
corporations have sold purely blue sky
stock, but the point am attempting
to make is that here is another federal
There are so many other examples
that could be cited that they would fill
more space than Is available here. In
many previous letters, have attempt
ed to show to what extent govern
ment has assumed control over BUSH
ness through the various laws and 1t
seems there are additions yet to be
made to those under the plans for
legislation which Mr.. Roosevelt has
outlined for presentation to the next
congress. Time alone can tell wheth-
er the course is right or wrong or
only partially adaptable to our sys-
tenn Of living. But surely 1t can be
stated now that the government of the
United States is exerting more infiu-
ence on the lives of it's citizens than
at any other time in its history.
As we go through the month of