Wheeling majority. [volume] (Wheeling, W. Va.) 1907-192?, 1913-08-07

Reserve Bank may withdraw its col
laterals and substitute others.
Let us see for minute how this
might be worked. A Federal Reserve
Bank may keep practically all its
notes and bills of this character on
deposit in the U. S. Treasury, only
exchanging them from time to time,
when they come due, for new notes
and bills. With these as collateral it
can obtain Treasury notes to the same
amount. These Treasury Notes it
can take back to the Treasury and
exchange for gold. With II or more
Federal Reserve Banks working this
scheme, how long would it take to
drain the Treasury of its gold? 1t
has the greenback redemption scheme
worked under Cleveland, beat to a
standstill. AS long as the Gold Stan
dard Act with it's requirement for
gold reserve of $150,000 10000 remains
on the statutes, the Federal Reserve
Banks by draining the gold can force
the governemnt to issue bonds to any
amount they want and at any interest
they might demand. The government
would not even be able to get back
the gold it itself might have deposited
with the Federal Reserve Banks. be
cause thel aw guards against any
withdrawal by the government, ex-
t-cept by checks, drawn for disburse-
ments. The reserve that the Federal
| Reserve Banks are required to keep
on deposit in the Unitd States Treas
ury dos not either need to be in gold,
but may be in \laWful money. The
relations between the government and
| the banks could probably best be com
pared with a wolf under the control
of lamb. The lamb and it's contrc
would soon be inside the wolf
The bait held out to the business
world is that of increased and stable
credit. Business men have become
trained to look to loans as their main
source of money; no business man
likes to be refused loan when he
asks Off it and thinks with the in.
creased facilities provided for in the
bill, he will avoid refusals, be able to
increase his business and extract
more profit. The bait however, is
like bank notes, only promises, not
expected to be taken seriously The
only two things that are certain in
regard to the operations of this pro-
posed law as affecting the business
men are tina THE more he draws on
his credit the greater also his ex-
pense on this account will be, and
that while the banks may become
more able to give stable credit accom-
odations, there is no obligation on
their part to do SO.
| Organized into one big and power
J full trust they would be far more in
, dependent, the business world far
more dependent upon them than at
present. The business man who
would not listen to their 'advice"
might Just as well give up his bust
ness. The justification process would
undoubtedly be carried out at far
greater rate of speed than at present,
with the elimination of number of
midd1emen, employees and small bust
ness concerns. Even the small banks
are not m UGH protested. After they
get into the trust they cannot get out
again without dissolving and the
greater facilities the law provides for
are entirely at the option of the Fed
eral reserve banks and the Federal
Reserve Board.
The laboring world has already ex-
perienced the different effects of
partial classification and monopoliza-
ton and can readily picture for it.
self the further results of a complete
justification and monopolzation of
the financial system, the public utili-
ties, the natural resources and the
necessities Of life. The combined
capitalists and employers of the coun-
try would be like one big giant against
the labOrer. and he would be a more
Iabject slave than any histoFy has