The frontier. (O'Neill City, Holt County, Neb.) 1880-1965, September 28, 1922, Image 4
H_ The Frontier L>: H. CRONIN7 Publisher. » W. C. TEMPLETON, Editor and Business Manager. One Year ....._.$2.00 Six Months . $1.00 Three Months. $0.60 Entered at the post office at O’Neill, Nebraska, as second-class matter. “DEFLATION” IN 1920. (Omaha Bee.) No clearer evidence of insincerity and no more flagrant example of “buck passing” could be afforded than the democratic state platform (plank cn “deflation,” and Hitchcock’s com ment last Saturday on the subject in which he says: “The republican party, through its platform and its candidate, in 1920 attacked the democratic ad ministration for inflation, and de manded and promised a deflation policy if intrusted with power. “Immediately afteij this w^as made the republican policy was begun by the federal reserve board.” According to the economic plan by which the Federal Reserve bank func tions, “deflation” ean be controlled by this bank in two ways. One is by in crease of interest rates chargad by the Federal Reserve bank to the hanks with which it deals over the country. The other is by a forcible retrencment of credit extended by the Federal Reserve bank to connecting banks in this country. In common parlance this latter simlply means the calling of loans by the Federal Reserve bank, thereby forcing the calling of retrenchment of loans on the part of connecting banks. Wilson and the democratic adminis tration were in full control of the Federal Reserve system until March 4, 1921, the date that President Hard ing took office. The republican na tional platform was adopted on the evening of June 10, 1920, and that is the date democratic leaders asign as t ______________________ the beginning of deflation. Here are the real facts: In December, 1919, the Federal Re serve bank announced that it would increase interest rates, and did so. The rate at the time this announce ment was made was 4 1-2 per cent, and there followed in rapid succes sion a series of increases In the feder al discount rate until it reached 7 1-2 per cent. This sinister and~unwarren ted increase in rates marked the be ginning of “deflation,” which was to bring enevitable business depression and ruin to hundreds of thousand of farmers and citizens. That was De cember, 1919, a year and half before the end of the Wilson administration. ‘On January 16, 1920, member banks of the Federal Reserve sys tem were notified the loans from cen tral institutions must be radiacally reduced. This was the second step of “deflation,” resulting immediately in the further curtailment of agricul tural and other credits. Indeed, the result of this order was immediate and sinister. On February 13,-1920, less than 30 days folowing the issu ance of this order by the Federal Re serve board, announcement was made that during the four weeks just end ed the Federal Reserve bank had re du«ed its loans in the aggregate of $111,000,000. This statement was based on reports from 804 banks in the Federal Reserve system. This reduc tion of $111,000,000 was made more than a year prior to the end of the Wilson administration. Nor were the misgivings in connec-' tion with the Wilsonian policy con fined to republican leaders. On Janu ary 23, 1920, Senator Owen, demo crat, Oklahoma, member of the sen ate committee on banking and cur I rency, and one of the authors of the I bill creating the Federal Reserve bank, attacked the policy of the board in raising interest rates. He point ed out that the policy adopted had caused the decline in the price of Liberty bonds. If Liberty bonds, hav ing as the security Iback of them the total wealth of the entire nation, were depreciated by the -policy of the Federal Reserve board, it required no vivid imagination, to realize how farm and other credits would suffer. It was, as stated, on January 23, 1920, when Senator Owen, democrat, made his direct charge, over a year before the end tof the Wilson administrat tion. One of the first protests that the Wilsonian policy of the Federal Re serve bank was injuring agriculture was furnished by Senator} Gronna, republican, of North Dakota, chair man of the senate committee on agri culture. On February 9, 1920, he in troduced a resolution in the senate to investigate and report to the senate the amount cf loans made upon grain by the Federal Reserve and other banks, and to investigate the alleged cause of withdrawal of funds to pro vide loans and extensions or renewal of loans upon wheat and other cer eals. On May 16, 1920, Senator McCor mick republican,of Illinois, introduced a resolution in the senate similar to that introduced by Senator Gronna in February. The continuous objec tions and complaints from all over the nation began to tell on W. P. G. Harding, governor of the Federal Re serve board, and a democrat. He ad dressed a letter to Senator McCor mick in which he said: ‘Discount rate advances have checked credit transactions some what, but have not been entirely effective in bringing about the re duction in |loans desired and which might normally have been expected during the early months of this ^ear.” About this time, May 1920, Govern or Harding of the Federal Reserve board, complained that interest rates had. not sufficiently checked credit transactions, and had not brought on “deflation” with tufficier/t rapidity. Yet “deflation” was getting in its deadly work not only on agriculture but on business generally. The pinch was being felt in al sections of the nation. May democratic members of congress who could see what the ruin ous result of the drastic “deflation” and curtailment of agricultural credi democratic Federal Reserve board was to be, began openly to make com plaint. On June 3, 1920, Representa tive Garner, democrat, of Texas, ranking member of the house ways and means committee, wrote a letter to the Federal Reserve board protest ing against its policy of “deflation” and curtailmnt of agricultural credi its. He said that the democratic poli cy had resulted very disastrously to the wool interests of his state. About this time Governor Harding, a democrat, adopted a policy of put ting out a steady stream of public propaganda attempting to justify his position, and to this last complaint from Representative Garner, a fellow democrat, and a member of the “southern bloc” in congress, he made a slpecial reply, saying that the policy of the federal reserve board did not of necessity curtail agricultural loans. He said that member banks had been notified to cut out all non-essential loans, but left each bank sole judge as to what it regarded non-essential. What did this mean? Banks dealing almost exclusively in agricultural loans were commanded to curtail loans. There was only one place they could curtail, and that was on agri cultural loans. Governor Harding and his fellow democratic members of the federal reserve board knew this, and they also knew that the dis cretionary power with which they vested agricultural banks was abso lutely meaningless. On June 9, 1921, Senator Simmons, democrat, of North Carolina, member of the “southern bloc,” while discuss ing the bill to increase the funds of he Federal Farm Loan bank, said: “I have no hesitation in saying that the narrow (policy of the federal reserve board with res pect to agriculture and agricul tural loans in the matter of ‘de flation’ and in the matter of re striction of credit at the wrong time, and going too far in both directions, coupled with the fact of their taking the lid practically off the interest rate charged by the federal reserve board, is largely responsible for the con dition in which the farmer finds himself today.” These are the real facts as to the history of “deflation” during the last year and more of the Wilson admin istration. Hitchcock either knows or should know these facts. Hitchcock should have used his influence against this policy during the last year of the Wilson administration along with his colleagues, Senators Simmons, Owen, Representative Garner and many others of the ‘southern bloc.” If it is his desire to serve the public and particularly thd farmers, face the de flation proposition frankly, past, present and future, and not now be engaged in “buck passing.” Nothing more .Pmusing has been offered in this camlpaign than the effort to credit the republican na tional platform of June 10,1920, with the “deflation” policy of the Wilson administration before and after the adoption of that platform. Yet the matter is far too serious for jesting. The situation today, as in the past, calls for real statesmanship. Only those who face the facts of the past frankly can qualify as proper hands in which to place the future solution of questions which so vitally concern the life and prosperity of the people of Nebraska and the nation. THOMAS SIMONSON. Thomas, the twelve year old son of Mr. and Mrs. Colmer Simonson, died in an Omaha hospital last Saturday morning at 8:30. Death was caused from Streptococcic infection result ing from an injury. The boy was taken to Omaha on the previous Thursday, by Dr. Gilligan, with the hope that the infection could be checked through an operation. The remains were brought to O’Neill Sun day afternoon and funeral services were held from the Methodist church at ten o’clock Monday morning. In terment was made in Prospect Hill cemetery. Rev. Hutchins conducted the services. CARD OF THANKS. We wish to thank our many friends for the kindness and sympathy shown us during the illness and death of our beloved son; also for the many floral offerings received. Mr. and Mrs. C. T. Simonson 1 and family. A High Grade Range II atManufecturmgCost J j j \ f / Special Sale Now On Above is shown one of the most remarkable bargains in a high grade range ever offered. By special arrangement with the manufacturer, the | ——— --—■-. Favorite “ M ” shown above has been sold to us at cost, with the understanding that we sell at the same Two beaut'- price. This enables ful pieces of us to offer to our good Porcelai n customers and friends Hollowware a real Favorite range with each range at less than a pre-war purchased dur- price. An opportunity ine this soecial such as this will not occur sale Cnm^nH again in a life time. Take “f*..1ean?_ , advantage of it. see this beautiful ware. The best to cook in, sanitary and This is only one of the ea*sy to clean. Value $4.50 many remarkable values T offered during our great ■ Range Sale. Neil P. Brennan *• • ^ -v. MORE LOCAL MATTERS. Mrs. Neil Brennan is enjoying a visit from a nephew, Homer Garret son, of Sioux City, Iowa. Mrs. Lewis Ruppekam and daughter, Miss Laura, of Iowa City, are visiting at the Chas. Wrede home, vicinity but now in Antelope county was granted a license to wed Mrs. Grace Chemmitzer, of Neligh. John Tucker, of Valentine, one of the leading attorneys of Cherry county, was an O’Neill visitor on legal business Tuesday. The Frontier will perhaps be con siderably late ftext week on account of setting the delinquent tax list and preparing it for publication. Elwin Strong and Company are playing in O’Neill this week. Mr. Strong has an excellent company this year and is playing a repetoir of royal plays that are giving entire satis faction. Leo Zimmerman drove up from Hutchinson, Kansas, last Saturday and visited a couple of days at the home of his parents, Mr. and Mrs. Henry Zimmerman, in O’Neill. Leo is man ager of the David Cole Creamery Co., at Hutchinson, Kansas. The first general meeting of the Womans Club will be, held Wednesday afternoon, October 4th, at 3:30 in the Odd Fellows hall. All members are especially requested to be present as business of an important nature will come before the club. Delegates will be elected to the state convention. Jewell W. Udey, formerly of this Crawford Kennedy, of Lincoln, re publican candidate for secretary of state, was the guest of O’Neill friends Tuesday and Wednesday, returning eastward Thursday afternoon. Mr. Kennedy, the first railway mail clerk to enter O’Neill, Valentine and Chad ron, with the advance westward of the old Fremont, Elkhorn & Missouri Valley railroad, now the North western, is an old timer of western and northern Nebraska. A suspect in the blowing of a gar age safe at Brunswick Tuesday even ing was picked up here by local offici als Wednesday night. The man and two companions had been traced from Brunswisk to Page by the Brunswick garage men by the tracks left by their tire treads and the car was spotted here early in the evening, the driver being taken into custody. The sheriff and county attorney of Antelope county immediately were notified and came to O’Neill for the prisoner Wed nesday night. Chef Tells Secret For New Bran Gems Rene Anjaid TTIERE are ways of making bran * gems. Rene Anjard, chef of the Waldorf-Astoria, New York, has a recipe all of his own, which occu pies a prominent place in the hotel’s diet lists. The Waldorf-Astoria, by the way, has a whole series of menus on sci entific diet lists, and these bran gems can be found in almost every one of them. This is the way Monsieur Anjard makes his bran gems: One and one-half cups of bran, one teaspoonful of baking soda, one tablespoonful of butter, three fourths cup of sour cream dr butter milk, one-fourth cup of sugar. Mix together and bake in a hot oven for twenty minutes. This makes six gems. -'"l "U. J' ■I.IUW .. I. .j, ,.t P1"™"1"*-——hi Procter & Gamble high grade Soaps 1 1 I — SOLD IN ASSORTMENTS Saturday, Sept. 30 'For one day only, Saturday, September 30th we will sell the following assortment of Proctor & Gamble’s popular Soaps and Powders at 20 PACKAGES FOR $1 Soap Sale-Cash Only Brands Usual Price 2 Bars Ivory Soap .___ .20 1 Package Ivory Flakes ...13 2 Packages Star Naptha Powder ........_. .10 8 Bars Luna Soap...... .40 7 Bars P and G, White Naptha Soap.A.44 $1.27 20 Packages All for $1.00 Ben J. Grady, Grocer Phones 68-126 We Deliver YO KNOW that we are well equipped to furnish you anything you want in the Grocery Line. Butter taken in Trade at Market Price Gash Paid for Eggs Headquarters for Gooch’s Best Flour Our Meat Market is well stocked with all the meats of the season. | Henry Bay Phone 35 O’Neill, Nebr. ....■■■■.... SALE BILLS—THE BEST AT THE FRONTIER Poultry Wanted • I want your poul- * try and will pay thfe highest market price Zimmerman & Son O’Neill, Nebraska