Page 5 of 3 Aug 1934 Issue of Albert Lea Freeborn Patriot in Albert-Lea, Minnesota

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Albert Lea Freeborn Patriot (Newspaper) - August 3, 1934, Albert Lea, Minnesota Freeborn Patriot 5 meet your friends a Peterson amp Olson lunches Schmidt a Beer manipulation of Money and its effect on Trade and Commer Cebu the editor shoe repairing cleaning Bill dress for real Beer step in at the hamburger Home regular meals at reasonable prices 133 e. Main Street men und women rubber heels we fix pm Quick �?�.v.v.briggs121 w. Clark St. Torgeson amp Hoium Barber shop under Spicer a him farm labor Oil association Oil Ioc a quart High test Gas Northside Highway no 65 Money credit and negotiable instruments form a medium of Exchange their primary purpose being to stimulate Trade and Commerce. If a Farmer wishes to Purchase an overcoat he does not take his hogs to the merchant and present them in payment. Instead he Sells them to a meat Packer and receives Money for them and with this Money buys the overcoat. The merchant with this Money pays the manufacturer the manufacturer pays the labourer the labor Guys pork from the meat Cutter the meat Cutter pays the packing Plant and the Packer buys More hogs. Take away the Money or whatever the medium of Exchange May be and the whole process is stopped. Increase the medium of Exchange and you increase business. So much Money May he put into circulation or credit May be extended or other mediums of Exchange used to such a degree thai it not Only increases business but also increases the Price of commodities and the wages of labor. This is exactly what happened during the years of 1917, i Jinx i is 19, and 1 920. In 1921 we had Sharp decreases in our medium of Exchange resulting in a Sharp drop in the scale of wages and tin Price of commodities with a corresponding effect on Trade and Commerce. From 1921 to 1929 we had a gradual increase in our medium of Exchange through the Extension of credit. It created the Boom of 1929. Starting in tile fall of 1929 and continuing to the Spring of 1933 there was a steady decrease in our medium of Exchange with resulting Low prices and business stagnation. From 1917 to 1920 there was an increase in the medium of Exchange through the issuance it government Bonds. These Bonds were not purchased for the purpose of investment by a few financiers. They were purchased by people in All walks of life who Felt it their patriotic duty to do so. The writer himself purchased two of these Bonds with Money obtained by polishing shoes. These Bonds were accepted almost everywhere at Par and were used As Money. Farms grocery Bills and what not were paid for with these Bonds. Prices went up with every Issue. Increased prices stimulated credit and speculation was rampant. In 1921 these Bonds totalling several billions of dollars went below Par were sized by the monies men and taken out. Of circulation. With the medium of Exchange Cut in half prices dropped and business slowed up. Every government official from the most insignificant office Holder to president of the United states knew that the results would be disastrous. The government did absolutely nothing to make up the loss caused by the loss in our medium of Exchange. Instead the Federal Reserve Banks were allowed to Call in Loans at this critical period and wipe out the entire savings of millions of our people. When Thomas a. Edison approached Andrew Mellon with a plan to remedy the situation he was Given a cold shoulder. Finding the masses of our people without Cash to Purchase their goods our manufacturers and merchants began extending credit through the instalment plan w Inch was a process of mortgaging future income. With every Extension of credit business increased and prices of commodities Rose. Cars radios Homes almost every conceivable form of merchandise was sold on this plan. With every such transaction the people of our country went further in debt incurring upon themselves at the same time a huge Burden of interest. Not Only had the masses of our people gone in debt but they were not receiving their just proportion of the National income. The income of Farmers decreased 4 0 per cent the income of labourers decreased 30 per cent while the dividends on common Stock increased 72 per cent. By 1929 ninety per cent of the wealth of this nation was in the hands of 2 per cent of the people. The remaining 9x per cent were in debt approximately $150,000,000,-000, and were faced with an annual interest Bill of almost ten billion dollars equal to the Gross value at the markets of All farm products produced that year. This interest Bill was equal to More than All the Money of All kinds that were in the United states. Consequently this interest Bill could not be paid and marked the end of credit. Then the government imposed a tax on checks which resulted in fewer checks being written and further decreased our medium of Exchange. Bonds dropped stocks dropped wages dropped factories closed farm products went Down and business once More became stagnant. So today we find that we Are in a very deep rut. We will not get out of this rut until these debts Are either paid or cancelled and we have a sound and adequate medium of Exchange with the Farmer and the labourer receiving his just portion of the National income. In View of this tragic state of affairs it was disheartening to see the original Frazier Lemke Hill which would have done so much to Correct this situation be Defeated by Only 4 votes. Tho continued on Page

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