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
