The people's voice. [volume] (Helena, Mont.) 1939-1969, 1953-08-07
RECORD FAILS TO SHOW PRESID IS
A SUCCESSFUL ADMIkISTRAT 5

pendent companies. -
There is one Eisenhower policy
which is now emerging that is po-
tentially much more dangerous to
this country than any of the others.
This is the "hard dollar" policy be-
ing carried out without any action
by Congress whatsoever.
Eisenhower has turned over the
credit and interest rate policy of
this country to the big New York
bankers just as his Republican pre-
decessors did in the twenties with
such disastrous results. There is moth
ing so artificially and completely con-
trolled by the Government as bank
credit and interest rates. Under Ell
senhower the Treasury Department
and the Federal Reserve Board are
carrying out deliberate policy to
dampen the boom and cause defla-
ton. AS one business publication said
here recently, they hope to do this
without causing more than five mil
lion unemployed.
The "hard dollar" policy means
making dollars hard to get. By rails
ing interest rates and shrinking bank
reserves so banks can't lend money
to business, economic activity can
be cut down. That forces new compe-
titive business into bankruptcy, and
less business means fewer jobs. Few
err jobs means more men standing in
line at the employment window and
more labor discipline" Most of the
newspapers have failed to catch on
to what is going on, but the financial
papers are all giving an accurate
blow by blow description of what has
already happened without Congress
so much as taking vote.
Roosevelt financed the war debt
for 2 per cent. Now Randolph Bur-
CESS, assistant Secretary of the Urea
sury and formerly head of National
City Bank in New York, is shifting
the debt over to 30-year bonds at
81 per cent, the highest rate since
1884. Needless to say this is going
to cost the taxpayers billions in order
to carry the national debt, but that is
the least damage done.
The immediate effect of rails
ing the government bond rate was
to start raises all along the line on
every kind of private loan. Business
loans are up to 3 "a per cent which
makes every businessman think
twice before expanding. Mortgage
rates are on their way up. An in
crease of one per cent would cost
the average home buyer an extra
$40 per month for Is years to buy
his home. School bond rates have
gone up and will cost us all more
in taxes for less schools. The rate
that farmers must pay on commodi- ,
ty credit loans has already been
jumped up. Automobile loans are
now up IL per cent on two year
loans.
Mr.. Burgess piously tells us that
his was necessary to halt initiation.
But in truth doctor" Burgess has |
pill to be taken after
meals for 80 years in order to cure
/ temporary indisposition.
Working hand in glove with Mr..
Burgess is the Federal Reserve Board
which has the power to shrink the
amount of credit which banks have
% lend. By shrinking the amount of
.redit available for normal business
operations and by knocking out the
RIG, the home loan and the farm
oan agencies of the government, life
md death power over industry is
again being returned to the Wall
Street barons whose wirsys were clip
bed by Roosevelt. The WALL
STREET JOURNAL carried a front
,age story on April % with the head
inc Business Borrowers Find Lend
II Reluctance in Big New York
Mart" The JOURNAL pointed out
hat "21 major New York banks ac-
count for nearly 20 per cent of all
oans by commercial banks in this
The article quoted one
tanker as saying "We're so short of !