Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1939-02-02

fact that as the government issues
great quantities of I. 0. US in the
form of interest bearing bonds, which
obligations invariably gravitate into
the hands of the private banking sys-
tenn, the banks become the principle
creditors of the government, thus en-
abling them to WELD undue influence
on governmental policies.
Within the last few years, as never
before in our history, the Administra-
ton has depended upon the banks
as the principal outlet for government
bonds. Today, we find the private
banking structure carrying in its
portfolios approximately ID billion
dollars of tax exempt, interest bear
ing, government bonds. A total of
approximately 81 billion dollars of
Federal obligations have been issued
since 1882. Obviously, the govern
ment cannot at this moment convert
the ID billion dollars of bonds into
currency without development of I'M
controlled initiation which would be
more disastrous to the poor man
than it would be beneficial. But the
government could, without inviting
disaster, relieve the tax burdens of
the people at this time by paying
more or less of the gvernment's cur
rent running expenses in currency
and discontinue the issuance of addi-
final tax exempt, interest bearing
,v,
reduce the actual government ex-
penses and begin to liquidate, through
payment, the present bonded struc-
ture. Such step would materially
help bring back price levels to par
ity, decrease the tax burden, stop
the growth of the interest load, and
stimulate private industry. Sooner
or later necessity will compel us to
adopt this practical and sound method
if we are to have sound and per-
manent recovery. We should do so
now. We must take steps to remove
the insecurity we now have. Sta
bility in circulation would stabilize
prices. Until that has been done the
farmer and working man will con-
tinue to get the short end.
Would Extend Present Arrangement.
A plan under which the United
States would continue to give Ger
tain trade advantages to the Philip
pines for Is years after the Islands
attain independence in 1916 was sent
to Congress by the President last
week. In his message the President
said changes must be made in ex-
listing laws before November, 1910,
if the disruption of several Philip
pine industries is to be avoided" He
further recommended that the Is
million dollar a year cocoanut-oil
excise tax, which this country has
been collecting and refunding to the
Islands, be used by the Philippine
Commonwealth Government for re-
organizing the Islands economic set
up in preparation for the day when
the Philippines would no longer have
free entry into the United States.
For 40 years the Filipinos have
been clamoring for independence and
Congress finally decided to give it
to them, fixing 1916 as the time for
disseminating the present arrange
ment Why should the President show
more concern over the possible "dis-
ruption of several Philippine indus
tries" than over the present plight
of the American dairyman and live
stock industries who are suffering
heavily from the present arrange
ment? Butterfat, animal fats, and
cotton seed oil prices are now much
below cost of production, and it is
therefore a matter of surprise that
the President should advocate extend
ing the present arrangement from
1916 to 1860. Again say that char
ity should begin at home. Let us
look after our own people first and
after we have done that we can take
up the problems of others.