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About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (Feb. 7, 1913)
""JtV 2 VOLUME 13, NUMBER 5 V tf hv t i I t: 4 THE C0N0I3NTHATI0N OF MONKY An old-time contributor to Tho Commoner writes tlilK letter: I am enclosing you an Associated Press report of tho proceedings of tho money trust Investigating committee, had on December 12, (yesterday) which 1 clipped from tho St. Louis Post-Dispatch. Note tho marked paragraphs, which stale that an en forced low or reasonable rate of Interest would havo the result of keeping loose funds at home, Instead of them being attracted to New York City by tho high Interest rates for call loans overy time tho "shorts" aro forced to increase thoir margins by "bearish" manipulators. Tho concentration of money at one place like New York City necessarily leaves the balance of tho 'country without Hufllclent cash for the trans action of legitimate business. There is a reason for tho concentration of Idle money at Now York and it is high and usurious interest rates. In this connection at tention is Invited to an article- I prepared for, and was published by Tho Commoner In its issue of January Jl, 1007, pago 4. In this article will bo found tho following statements, which tho testimony before tho committee proves to havo been correct: "Upon Investigation it is found that there is no limit to the rate of interest that may bo charged on call loans. In tUo foot notes under a compilation of 'interest Laws and Statutes of Limitations' on pago 77 of tho Now York World Almnnac for 1905, may bo found tho following: " 'Now York has by a recent, law legalized any rate of Interest on call loans of $G,000 or upward on collateral security.' "As the speculators would hardly ask for tho passage of such a law, it must be presumed that it was passed at tho dictation of those having money to loan, principally bankers. Hero wo Unci the foundation upon which all the rascality and thievery Is based. Tho money sharks had all limits removed and then because their sup ply of loanable funds became exhausted, they now ask (and are still asking) congress to per mit them to incroaso tho supply of loanable funds by authorizing them to coin their credit into nionoy. President Roosevelt should put forth every effort to have his home state repeal this law immediately. Lot him throw his influence in favor of placing n limit upon tho greed of tho Shylocks of Wall street, and excessive rates for call loans will cease. And when money can not bo loaned at excessive rates in New York, all money tem porarily out of uso will not bo drawn there. Ihis will tone down speculation and leave enough to transact the business of tho country without resorting to 'rag baby' issues." Muvuruur ouizer can perrorin no greater ser- 008Si0000000000 V,A l..,.r... j iwituuAKu snui The Commoner. vice to the country than by working for the pass age of a law which will make usurious rates on call loans a crime. Reference is made, in the article referred to, to Secretary's Shaw state-, ment that Now York City has the only call money market in the world. Let her have a call money market but let it bo governed by the same laws regarding usury as govern other loans. To further permit Wall street financiers to take advantage of conditions which they scheme and plan for, and force to come about by their wily manipulations, places upon tho state of New York the entire responsibility therefor. The paragraphs in the Associated Press re port to which the writer refers wero under dale of December 12th, and were as follows: "Tho committee also heard several money brokers, operating in tho "loan crowd" on the Nov York stock exchange, who testified that an enforced low rate of interest would prevent tho movement of money toward New York from country banks, when the money was needed at homo points." Second paragraph relates to the testimony of Griesel of New York: " 'What would be tho result of fixing a rate of interest on money in the stock exchange?' asked Untormyer. " 'Whv, it would keep the money at homo in the country banks,' answered Griesel. "C. V. Turner, loan broker for the National City bank, snid that the bank he represents never charged more than 6 per cent on loans no matter what the rate on call money might be on the exchange. " 'What would be the result if all banks did that?' asked Untermyer. " 'Why, money would not be attractedto New York,' answered Turner. He said that on the day, recently, when money was at 20 per cpnt he lent, for the account of tho National City bank, $1,000,000 at G per cent. He described ti'e general method of making loans on tho floor of tho exchange and said that the total dally loans on the exchange would amount to more than $-10,000,000 or $50,000,000." AMlliam S. Beck, Indianapolis: You are absolutely right, there must bo no backward steps, but onward and up ward. In my judgment it behooves overy democrat to keep watch until the measures conceived in the mind, and so ably presented to tho American people by Col Bryan havo been written in our statutes. For any democrat to slumber at this stage of tho people's fight would bo as nonsensical and as suicidal as the action of tho delegates of tho Chicago convention, and a crime against the masses that aro now looking 8o longingly yen h,opof,S ly t0 the democratic party for relief Tho burdens that have been heaped upon tho great middle class in this country through the mis-rule of the republican party are almost unbearable and must be lifted by the doKatS party, and the democratic party, if eve"? democrat will do his duty will bo" more than equal to tho occasion Would IZt wo had more liko Col. Drvai wil mighty tongue, and eloqut talk hS done so much to bring about our prWenr success, and my faith shall not falter " long as Col. Bryan and President nl havo life and health to keep tZ mJjLn awake and thinking. However I ffiff868 it tho part of duty for every demoSSfT aid in the dissemination ?of The troth L? 3578 for $3.2o, and for which you win please place on your subscription list Tin enclosed names and addressed orone0 0e000000 STATUS OF THE INCOME TAX Tho following is believed to be a correct list of all the states that have ratified the income tax amendment to the national constitution together with the date of adoption: ' ioiTT' A,,ff17' fl: Arizona, April 9 V innT' APril2' 1911; CaHfoniirJan: '11qf;o;n;,' F?. 20. 1911; Georgia (Vuk. j, 1910: Idaho, .Tan. 20 1011- tiiiiwU FelTV lVl: -' 0 1911 " ky Feb s :ifian.8aT8, Yarch 6 19ll: K iH kj, ier. s, 1910: Louisiana, July 1 IQ19. JJ, 912; Mississippi, March 11 iom. Vr" sonri. March 16, mil ; Mont-ma Tor qi :ioI?" 11. 1911; North Dakota i Feb 21 ?? v'?" Tan. 19 toil: OklalSmi? iflrch 141 mo.' ?Q?nVn?V 2' lflll: Sotb Carilona Ko 2V 1910; South Dakota Feb 3 iqio. w ' April 11 ini. T;' 7 d L12; Tennessee, throe-fourths These two mTcw the I following states; none of whS, S?e fr.m the on tho amendment- 'a3 yet aetea West Virginia . wSXj"1' Vermont- Virginia; "onM:0'' state, are in tho income tax? si oSdTe'i t"e frlemls o go by. " not Iet tllP opportunity tAZl tt'are-'Co'nT .W8 " shire, ,o,leIslaT,d;tItan0!tlCUt' New H"P- prMt,!!? ?o0anrr ta,tcn a"- lopted in tho neeessanr 8S " a"?namont This about marks the mtatoum of f States to make a ehange , tttSLotS THE RAKE-OFF J. P. Morgan & Co. are to pay 93 Vo for in 000,000 of 6 per cent Interborough bond 5'' issued under the pending contract with th !u From the columns of esteemed contemn..! , . that defend this amazing transaction wo 25' a number of actual sales of 5 per cent h 6 the stock exchange: Donds Five per cent bonds of the Atchison, TW, and Santa Fe, without public guarantee, sold Five per cent bonds of the Georgia Centm without public guaranteo, sold at 107 Five per cent bonds of the Jersey' Centm without public guarantee, sold at 11 8 V Five per cent bonds of the Chesapeake and Ohio sold at 109. u Five per cent bonds of the interborough itself not yet protected by public guarantee, sold it 104. ai Five per cent bonds of' the Third Avenue line recently reorganized out of bankruptcy and with out public guarantee, sold at 106. Second-mortgage 5 per cent bonds of the steel trust, which may be dissolved as illeeal sold at 101. ga, The "rake-off" on the interborough's $170 000,000 may bo computed as follows: ' If the bonds are worth only par, it is $11. 050,000. ' If they are worth what interborough bonds now sell at in the market, it is $18,700,000. If they are worth 110, at which price the com bine itself plans to retire part of them, it is $28,050,000. Commissioner Wilcox is quoted as saying that the city is not concerned in the price, the inter borough gets for its bonds; only in the cash it turns in for the subways. The city is much concerned. Either in fares or in taxes, the people will pay- for everything. They will pay for construction and equipment. They will pay principal, interest, depreciation, brokerage, amortization allowance. They must also pliy the rake-off. We may suppose from the commissioner's an nouncement that in this he has been misquoted. We may suppose that the majority of the com mission and of the board of estimate have come to see in the pending contracts less considera tion of the public interest than they had been able to see before. New York World. LOOKING BACKWARD Lyons (Neb.) Mirror: General Daniel E. Sickles of New York has been arrested for embezzling $23,476 of monument funds. He is ono of those war generals who paraded over the country telling tho people that Bryan was not a fit man to be president. But tho day of fooling the people has gone by, they are get ting their "eyes open." POPULAR ELECTION OP SENATORS Colorado, Iowa, Idaho and Nevada have rati fied the proposed amendment providing for the direct election of United States senators. This great reform has made more rapid progress than the income tax, although !it is now likely that the latter will be formally' ratified first. , r ,', QUERY ' How many 'state's rights" democrats will surrender thein conviction, on, (the demand of the liquor lobby? If a republican senate is willing to recognize the rightn of , the state to control liquor shipments how, can-a democratic nouso of representatives refuse? . - . ' wVIRTUE REWARDED The abolition of the inaugurWl-'hall will save a large sum to democratic husbands almost enough to make Up for their campaign contribu tions. This is virtue rewarded. ' GREAT IMPROVERD3NT The editorial page of th w Courant for SaturX t e Hartford Daily marked improvement lTTy 25th- ows considerable porUoTof S eStoSS deVOtGB a Jligest of Commoner editor S vPa to Courant readers have no? ft Verily the such a treat as they enlLSi ?lany a day hd orial columns of CoS5ectteurUeh th edI" issue referred to. VjnnecMcut s paper in the LDXE BAKING POWDER Ex-Senator Beveridge is still insistine; that tho progressive republican party is like baking powder, "absolutely pure." Other parties con tain more or less of alloy, but a harp and crown aro given to P. R. by T. R." and Albert J. Munsey must be a fallen angel.' l ' REFORM IS MARCHING ON ' Governor Wilson's inspiring words are doing the work whereunto they were. sent. Men who havo been counted as reactionary are now say ing that tho country expects progress and that the pledges of the party must' bo carried out. ihis is (true ;in the various states also. Tho 'harvest Is ripe-and the reapers are numerous. O f
