The Sauk Centre herald., 1940-02-22
CAPITOL
@-NeZUS
WHO OWNS THE GOLD?
BY CONGRESSMAN Knutson

since my letter on Uncle Sam S
gold hoard appeared in print /
have received several letters inquir-
ing who owns the gold buried at
Fort Knox, Kentucky. According
to the Treasury Department the
title to all gold in the Federal trea-
sury, amounting to 18 billion doll
ars, is vested in the United States.
A large part of the gold is held as
security for geld certificates Cor
credits payable in gold certificates)
issued to and held by the Federal
Reserve banks pursuant to law.
Nevertheless, there is a very sub
stantial part which is available for
coinage.
Since my letter appeared in print
reader has written and suggest
ed that in view of the fact the ad-
ministration is anxious to get a
substantial part of the geld back
to Europe for stabilization purposes
it would be wise to use 7h billion
dollars in buying up all foreign
owned American securities. That
looks to me like sensible solution.
Most of these securities are owned
by England and France as those
government have taken them over,
issuing tc the owners government
bonds in payment. England and
France are at war. Their needs
for credit will compel them to liq-
uidate these holdings. That, nat
urally, will result in depressing
their market values. If this govern
ment were to take them over at
the prevailing market price we
could issue currency against these
securities. That would stop the
stream of dividends to Europe. 1t
would also give Europe the gold
that she needs. 1t surely is worth
looking into and I propose to- talk
to the Treasury officials about it
at an early date.
WOULD MAKE RATES
PERMANENT
I have introduced a bill, H.R.
$3.50, to make permanent a 2B %
interest rate on Federal farm loans
and 81 % rate on Commissioner
loans. Legislation of this kind is
badly needed. The rates that I pro-
pose are reasonable and if they
were put into effect would again
make mortgages gilt-edge secur-
tiles. Similar rates are in effect in
every European country. If those
governments can loan money at
such rates, why can't Uncle Sam?
A GLOOMY FORECAST
When the Agricultural Approp-
riation bill was before the House
last week Mr.. Cannon, Chairman
of the subcommittee and stall
wart Democrat, in speaking again
st the proposal to set aside Is mil
lion dollars for farm tenancy said
this:
"Mr. Chairman, what are the
facts in the case? This Panacea is
worthless. 1t does not accomplish
the purpose for which it was de-
signed. The expenditure of the
millions of dollars to date has been
ineffective, and farm tenancy, in
stead of being controlled, is increas-
ing at a rapid rate. We have more
tenants in America today than we
ever had since Columbus discover
ed America. Now, that is not a
mere estimate. The Department of
Agriculture reports that farm ten
ancy is increasing at the rate of
10000 Al year. And to expect to
cope with that flood of homeless and
landless farmers by giving farms
to a dozen or two in each State
has as much hope Of success as
extinguishing a forest fire with an
atomizer.
"Mr. Chairman, there is one cure
for tenancy, and only one. And
that is to raise farm prices to a
point where farmers will make
enough to buy a farmland If they
already have a farm, make enough
to stand off the sheriff. It Is a
simple but infallible remedy. All
that Is necessary is for the Com
mittee on Agriculture to bring in a
bill giving the farmer a wage for
y