SATURDAY, AUGUST 15, 1930 Would Take Power lo Expand or Contract Credit From Private Banks i'Miis wlncri have l;een R<1- niici-d for the revision of Ihe '""'mi's hanking system —plans '"'I have Ijecome a part of 'alluT CGUghlin's o\vn econo- uis program—are detci-iln'd in hi-' second of three- ImparEial iilictt-s wliifh jGh'n T. Flynn i-is written in an effort lo gin '.'iilrrs of Hie Courier News a 'flU'r uilileit'taiKliuff of '"fhc (-'oiiglilin 1'laii." liY JOHN T. FIA'NN Copyright, 1930, NBA Service, Inc. Once more across tile sky—a fky dark anil echoing with Hie rumblings of politicians In eruption—[lie magic word "•iioncy" Wreaks like a flash of lightning. It Ls the word with which Father Coiighlin disturbs the slumbers of lenders of botn mr.Jor parties. Father Cdughlm tells them, and his radio audience, 111 at Hie power lo issue money a sovereign power, that it )>e- ongs lo tlie government undci- he cdnstitulion and that th;J bankers have usurped that powct. But what does he mean by this? How much money is there In he country? There Is on deposit In Ihc bunks now about 43 hiliion dollars. But we all know that there is only about six and a quarter billion dollars of inonej issued by (he government. Who issued tin: other 43 billion? Last year Ihe banks nad rlepos- ts or 45 billion. Where did Ihe new four billion come from? Tlie government didn't issue it. Who did? How Bunks Create Millions of Dollars This is a point of the greatest mportance. Tlie money is created by the banks. Here is a bam: with a million dollars :n deposits You borrow $1000 from thnt bank. The banker doesn't give you $'lODC n cash. He merely writes in your deposit book a deposit of S1000. On tiie bank's books a deposit oi :ICO(» to your account Ls entered. 50 no«- the bank lias deposits of 51 .001.000 instead of $1.1)00,00:). You may draw that S1000 out by Jiving a check to another man, "it he promptly re-deposits In the same bank or another one, 59 lint the S10CO of newly created money remains as a now deposit n yonr bank or some other one. This is Die process by which ban:-; deposits arc created. And it is with these • deposits that v;e' do :he business of tlie nation. This a called hank mousy, credit *ioney. Tiie banks have it in Iheir pow^ to increase or decrease the amount of money by making or calling loans. And this is a power wliieli Father Coughlin, iu common with many other money reformers, says the private bankers should not possess. This power he wants to take away from thc banks and -vest in llic government because lie says it is a money making rmcl (ratling function. I'm! In Disparity nf Money ami Deposits Tills practice is criticized on another score. It is called an clement of great unsafely, re.spons-- hlc for our countless ban!: crashes. The money, supposed to be in our banks Ls really not there. When you have $1000 in n bank, you think of it as being real money which you can draw out at will. So does everyone else who has tnotiey in tlie bank. When you draw it out you want real money, government money, cash. But llic banks are supposed to have deposits of 40 billion dollar:: while (here Is really less than one-sixth lhat much money in the xvliole country. When, therefore, any- large number of people want to draw (heir money al the samr time, the banks simply don't have it. " : , _What can be done about this? r Coughlm proposes a e. Like the idea of tlie com- j y dollar and managed 'cur-, » v ... his plan for ibis iias, in j r p:irl at least, support from well-' Irnoivn economists. Father Coughlin mixed inlo thc plan several "Ihcr ingredients. 100 Per Ccnl Versus 1C Ter Cent Nanking Now we come lo (he pi.ins for dealing with the great p-oblem of bank-created money, and ws can look at various plans for demobilizing the bankets' control over credit. The first is offered by Prof. Irving Fisher. He calls It "100 per cent banking." Banks have usually cash (o the extent of 10 per rent of Iheir deposits. Fisher'.? plan Ls lo reniiire 100 per cent cash—a dollar in cash in the vaults for every dollar of clepiK- lls. Here Is how It would work: First. Ihe government would -set up a Currency Commission. This commission would buy ;rom all 'he banks almost all their asset?, enough to give thc batiks cash coital ( 0 ii, c j r deposits. The commission would pay for these assc'r with papor money Issued by it. This done. t'ac commission would have pr.ictic.illy all of (he bills, noles. bonds, stocks non- owned by Hie banks. The batiks would have insleart government currency. The deposits of Hi? ',w"'iks would be the same. 1ml BLYTHEVILLE, (ARK.) COURIER NEWS ~ When Throng Recited Pledge NUSJ Wilh right hands raised, thousands of delegates'thundered the pledge of the National Union for Social Justice as the convention of Father Charles B. Coughlin's creanimicn opened in Cleveland's -rent Public Hall. Here is shown a-.section of the great throne as they stood for the ceiemony after °Rcp Martin L. Scenes', tnsursent Democrat, temporary chairman, had called the convention lo order Radio Priest Gavels for Quiet they would be In cash instead of Interest-bearing investments. Thereafter all deposit batiks would lie chartered as mere warehouses of cash. They would not make loans. They "would always have to keep a dollar in cash in their vaull.i for every dollar 0:1 deposit. Their profits would come from charging depositors for th? service. Those who wish to borrow would BO to oilier types of banks specially chartered for the purpose. Such banks would accept funds Irom investors, not depositors. You | could put money in such banks for savings purposes, understanding that it could not be cheeked out at will. You would get interest. on yonr savings. Such banks would make loans. But they womd hand wished to deposit it lie would put over cash to the borrower. If he it in a deposit bank where it would remain until lie took it out. Business needs differing amounts of money at different times The amount of money, instead of being increased or decreased by bank credit as at present, would , be increased or diminished by 1 the Currency Commission. Another Plan Wipes Out National Debt Another plan might be called Ihe Chicago University plan because it Ls sponsored by a group , of economists there. Under thLs i plan the government would take over the Federal Re-«Tve Banks. The new bank would immediately buy up all outstanding Federal bonds—paying for them with Federal Reserve notes. The government would then own most of its bonds, thus almost wiping out the national debt and saving hundreds of millions a year in interest. The bondholders womd have cash instead. Private bankers would then bo permitted to form three kinds of "~~~ •— banks. I. Deposit batiks like those cept savings also and would make] of the National Citv naiik Van advocated by Fisher... 2. Investment short term loans. I dcrli) E. Facing a throng of thousands whose applause beat in a ing roar through Cleveland's, huge Public Hull, Father. Ciiarlcs Coughlin is shown here as he vainly gavelcd for quiet at the opening cf the convention of his organization.'. • A demonstration, ihat lasted for 1-1 minutes rocked tlie great auditorium before delegates returned to their seals. Behind Father Coughlin is shewn youthful Senator Rush Holt of West Virginia, keynote speaker for liie conclave of the National Union for' Social Justice. • VOTE Bill LITRE (C'onllmicrl From Pngt 1) urt'iKlil In to the- county clerk's ih« 'urii' 011 " Cn " n UI ' OI| B"I In "«• \Mls<n bos and Jimmy Gwallney that from Victoria anil trtn, according 10 workm who weie al the courthouse gutlu'riii* ceclion iTsulis. turned In ivporls ••'•'»•!••• n, a . (he boxes h,i;| for Pulley by exactly ()>,. snm< , figures by which Ihe local dn- Uon oiticers cerlliled them to have «OH» fcr McDonald. One theory Is lhal the Loxcs were first reported ft i- Biiltey as a prnclicnl Joke, a view lhat linds support ill the nckiK-.vlcdgcd fnct Mint the busts hud scneraily been can- ceded lo McDonald the night be- fcre election. Hailey supporters. " I ho fiber bund, contend that there was n last minute switch to him nt Wilson ami Victoria when it appeared Ulal his dte- tion was certain bill that later, when It developed Hint his narrow lead mlglil. be willed out, there was an effort to throw Ihe tones tlie ether way. In any event (here has been no explanation of Ihe erasures on the ccrtl- lieatlon sheets. Delegates Arc Choc™ Delegates and alternates lo the Democratic, slate convention from this county were olivled as follows: Chlekasnwba Dlslricl-dctcgales, V. 0. Holland. G. E. Keck. C. II. Wllstii, Cicne Bradley, Jesse Tay- los and Doyle Henderson, of Bly- Ihevllle, Hob McKlimoii, of MII- ntla, ami Dr. A. E. Robinson, Leacliville; alternates, Mrs. 11. L. Reynolds and Mrs. J. B. Clark. Blytheville. Mrs. T. E. Tate, Armorel, Will Richardson, Half Moon, Mose Smith, Yarbro, P. A. Rogers, Clear Lake, and J. P. Tompkins. Hurdcllc.'. Oseeoln district—delegates, Miss Alene Word, Llruce Ivy, S. L. Oladlsh, J. B. Uunn, Hale Jackson, J. T. Coslcn, O. U. Segraves and W. F. M. Ferguson: alternates. C. E. Stillenger, Jack Klrk- patrick, J. L. Williams, Claude Thcmason, w. P. tllyj Wilson. D. C. Young, W. A. Butler. Chairman Taylor announced that checks would be mailed next week lo judges and clerks who served in the primary. Tiie successful nominees for Justices of the peace and constable and commtttcemcn elected lor eacli township as certified by the central commillce arc as follows: Big Lake township-. A. F. Alston, John Neeclliam, justices of peace; Newt Moore, constable; Jim David, Eptlia Davis, W. E. Green, Joe; Horncr, comintttccmen. Burdette: R. T. Segraves, J. F. Tompkins. justices of the peace; H. C. Weathers, constable; J. F. thunder- PAGE THftEB Tiny fTexan Slicks Up for Big Time ' accept deposits. But the mercial bank would make only short term self-liquidating loans. Tlie Investment bank alone could make long term loans am) depositors would understand that thcjr accounts were not checking accounts. All are aiming at two things Firsl, to make bank deposits safe, and second, lo separate Ihe func- Bcing only 45 inches tall isn't poing to kce-p Charley R. Lockhart, liny state treasurer of Texas, from "painting the town red" miring his stopover in New York lies seen hero slicking up for n tour of Ihc bright spots prior to leaving on an ocean cruise financed by thc gift o( employes in h!s office. Tompkins, H. P. Liston, coimnll- Icemcn. _ Uowen township: 6. fc. Cook, O. | W. Poltcr. justices, of thc pence; W. E. Lott, constable; R. w. Cmv- ford, J. W. Crawford, conimitleo- uen. Canadian township: A. ' H Harslimati, R. u. Blnckwell, justices of Ihe peace; J. c. Dobbs, ;onslablc; C. E. Crlggcr, San! Tilhnan, commltteemeii. Carson township: w. F. M Ferguson, J. c. Kfrfcpatrlck, Justices of thc peace; 11. E Ross constable; J. D. Scott, J. o. Klrk- patrick. coinmtlleemcn. Clear Lake: M. H. darner, Ar- Ihur Brltlaln, Justice's of the peace: Charley Lutes, conslnblc- Joe Epperson, Irn KODIICC, com- mittcemen. ' Flelcher township: j. A. Apple R. W. Thomas, justices ot tn c peace; w. A. Woods, conslablc; J. A. Owaltncy, Sam Bowen. com- miiteemcn. Coldon Lake township: no justices of Ihe peace; J. j. Grcer constable; J. n. Cullom, W. F Wilson, commltteemen. Half Moon township; W. H. Wil- separatc deposit [ tion of mere banking from tne investment banking [ function of creating money. Prom trusts which would accept long Vaiulc.liri Proposes i hnniHiw -,„, term savings and would make a!l Separation of Functions i H^Ii~nJ,,,, ,, , long term loans. 3. Credit banks A third nlim Is offerer! i«' timU ' f . i W °' • , , V ° ll!rec plnns Fnthcr Co "ahltn draw, or ii^iatio,^ which would ac- ^ V ^^^^^^^^^^ wS i llf aSer^rllcie™ W '" "^ There's the Rub That Shows Quins' Love B llams. Will Richardson. Justices ol Ihc peace; Homer Hodge, con- lablc; R. L. Story, Lei and Hodge commltteemen. Hector township: C. C. Marrs A. B. Tale, jiis'lices of 'he peace- Earl Uowen, constable: E. M Woodard, OUo Bradberry, cornmlt- tcenien. Pecan lownshlp: John' Uzzell, R. C. Branch. Justices of llic peace R. E. King, conslable; K. Chllds, C. W. Friend, jonm. .. jnen. ^ Swayne lownshlp: J. K. Coopei Roy I'ermlnter, justices of llic peace; Ernest Brill, constable; S B. iiozzell, Ben Permlntcr, com- mitleemeii. Whitton township: W. W. Burl justice of the peace; c. w. Burl constable; J. A. McClcndon, R A Jackson, cominilteemen. Ecolt township: Nap Etta. H. c Smith, Justices of the peace; E M. Norton, constable; ..\ 5 Calchlngs, R. L. Clark, cotnr.tiUec- mcn. Monroe township: G. L, Waddell, w. D. Hale, Robert Greene, C. L. Moore, Justices of the peace;' B. R. Moore, constable; C. D Ayrcs, J. B. Bmm, H. p. Dmiavant, Minor Taylor, commitlcemen. Neal township: C. ?.. Garner A. A. Honnoll. Justices of Ihc peace- W. E. nancy, constable; A. E'. Hoblnson, O. J. Moore, Bntce Cuip T. O. Wilkins. J. n. Hodge, E. H! faber, commltteemen. Hickman township: W. B. Lof- lln, W. B. Hagan, juslices of the peace; I. A. Harrison, constable; Lish Atkinson, _Will Ray, com- milleemen. t , • Troy toiviulilp: O. P. Craig, C. K. Lynch, jiisttces of the. peace' Morris Lynch, constable; C. P. Craig. C. E. Lynch, commlt'ccmen. Little River township: j. jj. Lunsford. W. A. Webb. Justices of :hc peace; J. B. Sharp, constable; W. Matheny, a. H. Hobson, co.-n- nUUeemen. Chickasawb.-) ton-nslitp: J. L Nabors. T. W. Smith, c. R. Morgan. Tom Cassldy, justices of thc peace; Harry Taylor, constable; Jesse Taylor, V. G. Holland, J. j. | Moore. J, A. Leech. J. Louis Cher- 'ry, C. R. Babcock, John O. Mc- Hatiey Jr., c. W. Afflick, B o. West, J. J. Daly, Floyd White, commitlcemen » . plant a big, sisterly kiss nshl on Yvonne's laimhlng lips. Bllllie '• Wing about n. R l,e probably Is planning mlsehiev- ' Tlie sun varies In brightness over an 11-year period as the sunsix>ts wax and wane. CHURCH EXCUSES G. W. Barhu : Herein is my Father g| ori ned, that Ye !*„,. lliuch frull . d so ye shall be my disciple, even n s Die Father Iras loved me I also IKIVC loved you; Abide ye in my love. • John 15'8 9 ATTEND CHURCH SUNDAY , —Committee. World Travels Too Fast For Ils Own Good Declares Ancient Georgian I1V OIIA1II.ES KKKSK, JR. l/iilltil 1'rrss HUH Correspondent MEIfmiAN, Miss. (UP)-Specd Is Ihe ruination of the world today, If yon will lake the word of lOQ-ycar-old J.' II. Smith, who Uves wit), hi.., W-ycar-old wife In a small, one-room yellow collate here. Smith was born nt Cordele, Co., In 1836', the year the first steam- powered locomotive chugged Us way over uncertain railroad beds on wooden trucks. "Yep," Hie aged man prophesied, "speed Is the ruination of the world today. All my life I stayed home and lived simple. I didn't run around keeping lute lionis nwl dissipating. I ( it c good clean wholesome food. None of lhat fancy stuff for me." Tall mul with only n trace of the sloop of old age, his clear, blue eyes twinkle merrily under his hoary brows. He recalls vividly the pleasant serenity or his boyhood days.' The twinkle seemed to fade, however, when lie recalled the four years of war between the states and In the Sixties. "Sure I remember It. Didn't I spend four long years fighting the Yankees? "Why I can remember one winter we had lo march in snow uj> to our hips. A comrade of mine had Ihe whole sole ot his foot fi~o/.cn off." He puffed Ills corn-cob pipe and mused, "lobacco won't hurt nobody. I've been smoking since 1 was knee high lo u duck and It never harmed me. Wo used to have barrels of home-cured tobacco al home when \vc were boys. "But let me tell you unc thing," he said, the color flushing back Into Ills checks, "I hale to BCC women smoking." , Smith (loured out "stored-up resentment toward (lie opposite sex with sly glances at' Mrs. Smith. "One trouble with the world today," he said. "Is, women don't know their place. They clutter offices and don't get their work half done 'cause they are loo dcrn busy looking at -Tien. "They ought to be nt homo pushing a broom around, keeping house for the men-folks. That's what they dirt when I was young and the world was a better place to live In." Smith takes little Interest In politics, but he was willing lo venture that President Roosevelt "Is a pretty good president." "He lias done about all any man could do to help the country out. I've lived through. 20 administrations, so I giiess I ought to knoiv." STORIES-IN STAMPS " By I. S. Klein REVOLT AGAINST IGNORANCE 300 years, up to the begln- nlng of the 19tli century, Guatemala was kept in ignorance, Under oppression. Ruled by Spanish governors, the native Creoles heard nothing of the revolutions In France, the United States, and South America. But gradually news oi freedom gained in other Spanish dependencies seeped Into Guatemala, and the people become restless. They were appeased first by promises that weren't kept, then by offers or amnesty to political rebels. Still the Guatemalans grew bolder. In 1811, a small force revolted in Son Salvador, the capital. But oil other cities remained loyal to Spain and the revolt was suppressed. Other attempts were flucllcd, and many insurgents were sentenced lo death. But fear of further revolt kept the governor from executing the rebels. ' The tide ot revolt, by that time, became overpowering, and even the new governor, -Gavlno Gainza, went over to the independents. In 1821, he called a meeting of citizens in Guatemala City, whera resulted the "Act of. Independence," in a scene shown on a stamp, issued by G u a t e- mala in 1907. t. l'J36, NBA Service, Inc.) .. . . she will leave Spain the bag to hold." The dictionary Is o -record of American colloquial phrases. Gosnell News Hold-the-Bag Phrase Traced to Jefferson CHICAGO (UP) — Americans may be "left holding the bag" lo<lay, but It's nothing new—it happened in Thomas Jefferson's tiaic, ioo. University of Chicago scholars, preparing a "Dicllonary of American English." found lliat Jelfer- soit wrole a letter In 1793 in which he said: "If the bankruptcies of England proceed to Ihc length of an universal crush of their (>n|>er Mr. and Mrs. Murro Potter lire, the parents of a 7 1-2 pound girl. Mrs. Zola Sonheaver and sons, Mickey and Miller, and daughters, Janice and Evelyn, have returned to their home nt England, Ark., after n week's visit with Mrs. Sonheaver's brother, -John Ed Grimes, and other relatives. Mrs. Mary Bevlll -lias returned from a six months visit In California. .Mr. and Mrs. VIp; Bi-yeans, of California, are visiting Mr Dry- cans sister, MiV Myrtle Bevlll, and other relatives. Dick, baby son of Mr. and Mrs. Raymond Jackson, died lost Sunday. Tlie Rev. and Mrs. Vernon are holding a revival meeting in Tennessee. Mrs. Billie Lewis, of Forty an-J Eight, was the guest Friday -f Mrs. Lorella Grimes. Although SO per cent of Prance's population Is engaged Iu agriculture, production Is not sulflc- lent for demand. About GOCO French prisoners are confined In French Guiana. We Pay Cash For 2nd Hand Furniture . Phone 10.11 Hubbard 2nd Hand Furniture Store Near GulT Hole) Mississippi County, Arkansas LAND OWNERS ATTENTION Tin's being the year for assessing Inntls yon arc hereby notified lhat all cleared lands will be assessed at S20.00 per acre and uncleared lands at SS.OO to 810.00 per acre. If yon are-the owner, or represent the owner of lands now assessed, take notice of the adjustment in assessment and meet with equalization board the week of August 17. We \vonlil like to have the co-operation of the school board in each district. R.LGAINES, Assessor.
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