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About The American. (Central Point, Or.) 1928-1936 | View Entire Issue (Oct. 17, 1935)
GOVERNMENT BANK UNSUITED TO U.S. Would Serve Politics Rather Than Business Needs, Says R. S. Hecht, Citing Previous Experiences. QUOTES PRESIDENT JACKSON Extsnt and Dlversity of Thls Country Present« Different Situation From Europa and Makes Regional Banking Necessary. WASHINGTON, D. C.—A refutation of arguments in favor of a government- owned csntsal bank system for tbe United States la presented in a state ment by R. 8. Hecht, President of tbe American Bankers Association, based on exhaustive atudles of European cen tral banks. He also points out tbe die astroua consequences of previous cen tral bank experiments In tbe United States. "Our present regional Federal Re- aerve System under private ownership Is infinitely better for this country than would be a government-owned and controlled central bank," Mr. Hecbt saya. "If history teaches us any thing, It Is that It Is almost certain that a central bank so owned would be run to meet tbe varying exigencies of the government In power rather than to serve the commercial needs of the country." Central banking has been tried twice in the United States, but was Anally abolished because the credit control which the central banks exercised be came objectionable and unpopular, be goes on to say. What Andrew Jackson Said “Tbe continued existence of tbe Sec ond Bank Anally became a bitter polit ical Issue and President Jackson suc ceeded In abolishing It” Mr. Hecht saya. "Permit me to quota from ble fare well address: ‘The Immense capital and peculiar privileges bestowed upon It enabled It to exercise despotic away over the other banka In every part of the country. From its superior strength It could seriously Injure, if not destroy, tbe business of any of them which might Incur Its resentment . . . If you had not conquered, the government would have passed from the hands of tbe many to the hands of tbe tew; and this organized money power, from its secret conclave, would have dictated the choice of your highest officers. . , fhe forms of your government might, for a time, have remained, but Its living spirit would have departed from i t ’ ” When the Wilson Administration con sidered banking reform It carefully kept away from reefing central bank ing powers In a single institution and Instead Introduced the regional Idea by creating twelve reserve banks located in different economic and geographical sections of the country. Mr Hecht saya, s plan that has worked exceedingly well because the separate banks are under the guidance of men chosen on account of their intimate acquaintance with the problems and needs of their respective territories He continues: "The great size and diversity of America tends to make a central bank undesirable. Tbe central banka of Eu rope such as tbe Ranks of England, France and Germany cover areas not as large as some of nur »tales A cen tral bank In the United Stales on the other hand would be called upon to ad minister the Ananclal policies of an area larger than all of Europe. In which there are quite a number of cen tral banka Subiervient to Popular Demands "Moreover, history has proven that any banking system entirely owned and dominated by the gnveinmenl usu ally demonstrates much greater ability In aiding expansion of credit Hum It putting on the brakes at the right time to prevent undue InAntlon by restrain Ing and contracting credit This Is east to understand because in times of de preaslon everyone is urging the govern merit to make money and credit e.i and to encourage extension "On tbs other baud. It always has been and always will be a difficult task for any government to call a halt In tlms of apparent prosperity because In the very nature ot things the govern ment would be very sensitive to puhlii crltlclssi and would hesitate to take any action which would tend to curtail business activity. It Is such undue sua ceptlbllity to popular demands which makes government banking Inherently weak. "Our studies show that of all tha cen tral banka at preaent existing there are only four whose stock Is owned by (he government. The newest central bank Is that of Canada, which opened Its doors only a few months ago after a most exhaustive study had been made of the experience ot all nations with the result that the stock of the Bank of Canada la privately owned." The American Bankers Association. Mr Hecht saya Isconxlnced that a cen tral bank would not be tn the Interest of the public or the hanks This posl tlon. he added, la "well understood by the President and the leaders In his Ad ministration (or we ha«e been abso lutety frank with them in all of onr discussions and have missed no op portunlty for emphasising that In our opinion no banking system will. In tbe long run. he sound if it is dominated entirely by the ever changing political administrations We should do all ws can to keep nur hanking mechanism as far remoxed fr m n-yi *»n politics as p .sslhle " THURSDAY. UCTOHER 17, 1KM T 1.e AMERI CAN. CEN TRA L, P O IN T , O REG ON PAGE TWO drees. for •xample. w u at Fremont, weekly pay envelope contained $2$ W a l n u t M a r k e t Nebaraka. ill'the heart of the farm 50. In 1930, it contained IJb.OO.j P act in E ffect belt. There Mr. Roosevelt stood Soar it stands at 122.28. ' . (our-square for oue of hta most in i-j Everyone wants to see that pay The strongly fought walnut mar Dots and Dashes and Red Hot mings and -Mr. Hedgepeth! portaut legislative pets, the AAA. At envelope restored to its 1929 level j keting agreement went into effect Flashes—and this One policeman and one policeman gait Lake City, he praised Philippine —or above it- But there is much this Is Miss Scandal , . in Oregon. Washington and Califor- j Tosaer. tossing to you the newslees are two policemen, Two policemen independence, one of the major acts dissension as to the^prope^wn* to ^ yesterday concurrentIy with aQ and two policemen are too bad for of his Administration in the field of do that. Some news of the world! j announcement from A. E. Wright, the lough guys! foreign affairs. At Boulder City, No-! that each worker should put in more — 0— Portland, northwest representative of The two policemen wear two stars, vada. he dedicated the great Boulder hours per week— others point ou j the walnut control board, that all FLASH* —Since Central Point Hi My Stars! ^ Dam—and spoke aggressively in de-jthat this would tend to aggravate took to football, both neck* and bells Some believe that provisions, of the new code will be — 0— reuse of Federal Public Works spend- unemployment. I are rung. FLASH!— The "hot-shot". borne | jng an(i government-ln-the-power 1 the only way out is to increase hour- \ enforced rigidly. — 0— The control measure was approv made race car drivers of yesterday business. Thu» it went, in set and ly wage rates further— others oh FLASH!— Good neighbor, when woud not be speedy enough to drive informal speeches made ail along his serve that depressed business could- ed in Washington, D. C., late last | you imagine you hear thunder rals- the hearse* of today. route. It is significant that he said n't foot the Mil, and tha, more harm! week ,ollow,n* a po11 of which was expected to show that the j Ing thunder, be not alarmed, for in — 0— nothing concerning a new constitu- than good would result for all con majority of Oregon growers, at least, ! reality. If you will observe closely, ** FLASH!— With mine neighbors tional amendment, a much-debated cerned. were opposed to renewal of th* you will discover that -Mr. Leo Oben- own ey<Ag j gaw tbree children riding issue. Most experts now think that Organized labor still wants , tnc ■ agreement. , | chain has purchased for himself a • on one b|cycie t0 school yesterday, he will continue to say nothing about 30-hour working week, is seemingly, Congengug at geveral gUte meet. two-wheeled automobi e Oh M,. Second Hand Men! What |t | n the future------ It ia too danger- Interested less In increasing the in- Jngg ,n ree<>nt weekg wag th#t ^ — 0— a splendid opportunity to sell two oui an(j might become a boomerang dividual worker’s earnings than in .,^..11 , . local growers . would ignore a new FLASH!— An orchid to Mr. Cum-1 slightly used bicycles. | Thus opened , he campaign of the increasing the total earne > a code ¡{ were put into effect. ..................... party-in-power. And, shortly after , workers. Generally speaking It, a„gwer Wriifht sald he had and various councils will present the President had gone to the se a 1 wants to get more men to work be- Teceiyed P arent Teachers assurance from the farm membership stunts. Ion the cruiser Houston, it was met; fore trying to better the income of admlnlgtratlon that vlolatorg wlu be Lay P lans for M eet One of the principal feature of- by tbe head of the party-out-of-pow-| those who already have jobs. prosecuted promptly. W e d delegates to the convention j er> Mr. Hoover, who a p p a r e n t l y ------------------------ will be a caravan trip to Crater lake, opened the Republican campaign of NOTICE OF FINAL HEARING Organization and preparation for 1936 with a ringing speech at Oak- IN THE COUNTY COURT OF THE the Oregon State Parent-Teachers SNOOZE FLASHES land. C alifornia. T his speech by the sON’T C( H I N T Y ^ ^ ^ ,s' FOR B- association convention to be held In H igher 1 9 3 5 I n c o m e Medford October 22 to 25 inclusive C n V ° nly “Ving e*-Pre8,den,‘ waa more In the matter of the Estate of 1 or O regon r arm s than usually important— in it, foi [ \ g a ERIKSEN. also known as In- is making progress among local or ■ . - . the first time since he went down geberg Eriksen, deceased. ganizations. The chief activity ao Higher average prices and slight-ito defeat in 1932, Mr. Hoover di-i Notice is hereby given that the un- far has been the membership drive, -•]. . . . ... . * . K„ . . , dersigned Administratrix of the above Hat. Only which ia being entered into by a l l ,1* be,ter crop yields are expected to rectly attacked, by name and b> in- entitlp(1 egtate hag flIed w)th , he chapters in the state, and results | brlnS to ,he farmers of Oregon 5 ference, definite acts and policies ot abovp entitled court her First and TIM McCOY in of which will be tabulated this week. m,BI°n dollars more cash income the President. Even when he was Final Account and Report as such “ Square S h ooter” The objective this year, as an-1 from ,he crop and animal production campaigning in 1932, Mr. Hoover, if Administratrix, and the Court haf this writer’s memory is c o r r e c t. ^ „November 18th, 1935. A^D. at Episode 5 “RED RIDER” uounced by Mrs. L. D. Courtright,' °f than received from that of 10:00 o'clock A. M., as the time, and sthek to principles, steered clear of chairman of the state membership 1934’ and possibly 10 million more, the Courtroom of said Court in the Hun., Mon. committee is “Every Home in Mem- ***** tbe September report on the personalities, and on only one oeca- Courthouse in Medford, Oregon, as bership.” Membership in 1933 was agricultural situation just released sion in that bitter campaign s p o k e : the place for hearing objections, if “G IN G E R ” ! allY there be, why said First and 15,531, in 1934 19,082, in 1934, 23,- by ,he o s c agricultural extension the name of Roosevelt. J A N E W IT H E R S Final Account and Report should It is also indicated that Mr. Hoover said that the Roose- aot be approved, said Administratrix 047. The goal for 1936 la 30,000 service. members. The membership drive will' P u r t ‘h a s i n g power of farm income velt administration “is now clutched and her bondsmen discharged, and Tuos., Wed. be completed throughout the state per ,ltre be greater than in any in the meshes of the gigantic spend said estate closed. All persons are JACK HOLT in ing bureaucracy it has created.” He hereby notified to appear at said before the convention, when results; tb<* Prev*0'18 four years, time and place and show cause, if ‘T h e D efen se R ests’ and gains of ail associations will be1 ( asb Iarm income from 1935 pro- went on to say that unless the bud any they have, why such relief should W ed . N ile Is C a sh N ile presented before the delegates at a Auction is P l a c e d at 85 million dol- get is balanced, "we shall see one not be granted. Dated and first published this 17th membershfp “ Pow Wow’’ luncheon *ara possibly 90 millions, depend- of these three horsemen ravage the T h o r s ., F r l . on Wednesday noon, October 23. on prb’e frenda during the ba- land— taxation, repudiation or Infla dav of October, A. D. 1935. IRENE POWELL, Colored feathers will be awarded lance of the marketing season. At tion.” He denounced the New Deal’s Administratrix of the Estate of Inga EDMUND LOWE and worn, and the color worn will t *le b ‘Kber figure 1935 cash farm relief program, and said that the last Eriksen, also known as Ingeberg in U Eriksen, deceased. depend upon the Increase of mem- ,ncome ould a '>Proacb 75 per cent Republican administration (his own) Mr. D ynam ite if I of the estimated annual average of had provided sound, economical re O. H. BENGTSON, bership in each association. Attorney for Administratrix. The man bringing the most raeni- 124 million from 1926 to 1930. The lief for the needy, and that the Oct. 17, 24, 31, Nov. 7 bers to his association before th. : lower f,,5ure’ 85 million, is approxi- Roosevelt administration had undone conventlon will be dubbed “Big ,natPly 70 per cent of the »926-1930 the good work achieved then. In Chief," and four Princesses will be a' er“8e - but is gr< ater than in any effect, his speech was a clarion call chosen from the largest associations " ,ar from 1931 to 1934, both in to Republicans to join shoulder to shoulder in a fight to bring back In the following groups Elementary amt° unt and purcha8in* P°*«r. rhools, high schools, rural schools, ,n 1834’ ° re*nn ca8h lnfome was Into government the principles ol Two conferences'!PPr“X '"a,ely 80 rallllon dollara their party. . . . . will ,,, . be . held . . at . .. 1933, 58 million in 19- A M EM O R Y P IC T U R E ’ These recent events have done on membership the 70 „„ million . „ , in ... . ,, , 32, and i4 million in 1931, according much to clarify vagueness surround convention, one especially on awards . . , . ® to data given in the circular which ing the political situation, are help . . . seeing in memory those also gives the first estimate ever ing to bring he isuues into bold re “ liOST CHANCES” . • . . just An Object Lessim I made of Oregon cash farm income in lief. One news magazine has observed the 191U-1914 prewar “base period." that the forthcoming battle will be because . . . . I xvas not in a From Europe This is placed at an average of 74 the greatest since 1896, and that the position FINANCIALLY . • . to j million dollars annually, or 60 per main issue will be the same one that J By RAYM OND P IT C A IR N grasp them . . . . w ill you too cent of the 1926-1930 average. The Piattonai Chairman McKinley and BrVan fought over— | Santinrlt of ihr R rpuhlic _ acreage of all land In Oregon farms sound money. look backward . . . . as I aui “oOo- " T h r y that ran give up n a e n u a l liberty from 1910 to 1914 was about 80 per doing? .............. I'm wondering to obtain a little tem porary »afety d eter t e cent of the 1926-1930 acreage and To quote the United States News. neith er lib e rty nor tafety." farm prices averaged about 75 per ’Wages today are 2.2 per cent high-! Bo spoke Benjamin Franklin, sage of cent of the 1926-1930 level. er than In 1929. Wages today are) the Revolution and of our early Re public. His words ring as true today as 21.8 per cent lower than in 1929.1 a live grow in g account at this bank . . . they did a century and a half ago Strangely enough, both these state Turn to the news from modem Eu ments are true." rope If you would see the evidence. ¡The explanation of that apparent What do we read? impossibility is that the average Reports of government threatening to T he F IR ST N A T IO N A L B A N K plunge its people into a war of conquest workman gets more per hour for his o f M edford which statesmen fear may embroil all services now than he did in 1929. Europe. i Happenings Thm Affect the Dinner But he gets less at the end of the Reports of government elevating re Falls, Dividend Check* and Tax week— because he works fewet ligious and educational Intolerance to Bills of Every Individual. Nation hours. In 1929 he worked more than the status of a national policy. . turns “C h an ces” into “ A c h ie v e m e n ts” al anil International problem* In 4 0 hours per week— now he works Reports of government sacrificing the separable from IxM-al Welfare. freedom of its populace on the altars of 37.2 hours, according to a tabulation Communism and regimentation. of 25 major industries reporting to As the war guns spit in Ethiopia. Under what types of governments kre I the big political guns are being the National Industritl Conference these things happening? The answer brought into play in the United Board. is clear. In 1929 the average worker’s States. Early October marked the Under those whose people, for the real beginning o{ the great cam sake of a promised—and unfulfilled— economic safety, have delivered their paign of 1936. It was then, in the ensential liberties into the hands of words of Time, that, "13 months be highly centralised authority—whether a dictatorship or a rommunized bureau fore he was to defend his Presiden tial title against an as yet uunamed cracy. These are the dangers which the Republican challenger, Franklin De Founders of our nation knew and fore lano Roosevelt jogged out of Wash- saw when they wrote a Constitution that denied despotic power to politicians Ington for a 3,000-niile stretch of and vested all ultimate authority tn the | political r o a d w o r k , Champion people i Roosevelt felt It was not too early These are the tragic possibilities which for him to go through his pace* for men and women who love America seek the benefit of some 50,000,000 vo to avert today when they fight efforts to weaken those guaranties of personal ter* who will turn thumb* up or liberty and opportunity that are written down on him In 1936.” Lesser Into our Fundamental Law. ; lights had played their part»— It They know — from the lessons now was time for the chief to lead his apparent tn Europe — tliat Franklin's H ere, in the G enuine legions Into battle. warning could be rewritten to read: The President’s speeches on hit "They that can give up essential liberty to obtain a little temporary trip constituted direct, non-apologet- H eatrola, is safety low both liberty and safety." 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