Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1916-10-26
DEMOCRATIC
CLAIM IS T.
EXPLODE
N. D. Farmers Not Aided by
Federal Reserve
F! Notes.

States Treasurer, John Burke, can
dfdate for the United States Senate,
compelled the Federal Reserve Bank
at Minneapolis to issue Federal Re-
serve Notes to farmers of North Da-
kota to move crops last year, is
shown to be pure fiction by an offici-
al statement issued by the Federal
Reserve Board in this city.
The question as to how these Fed
,eral Reserve notes were issued to
farmers of North Dakota in the fall
of last year was put up squarely to
the Federal Reserve Board. The fact
lis in the summer of 1915, while
$I5,OOO,OOO was deposited with the
Federal Reserve Bank of Richmond,
Atlanta, and Dallas to move the cot
ton crop of the South, Secretary Nc
Adoo said in his annual report that
mo. deposits were made in the FEEDER
al Reserve Banks of St. Louis, Min
:neapolis, Kansas City and other cit
les for crop moving purposes, be
cause they were not in need OF funds
for such purposes" In the summer
.of 1915, Federal Reserve Agent Rich
stated in a letter that '-tlae North
west was amply supplied with funds
and rates for money were very low.
The Federal Reserve Banks ,estab-
lished a so-called Commodity rate
in accordance with the commodity
paper regulation issued by the Board
September 3, 1915, and that was put
into effect at the various Federal Re-
serve Banks on different dates and in
the case of Minneapolis on Septem-
ber 81. That there WAS no urgent
need for Federal Reserve Bank notes
in North Dakota is shown by the fact
that the Federal Reserve Bank of
Minneapolis in September, 1915, is
sued only $1,500 worth of these
notes. In November, or beginning
about IS days after the commodity
rate had been established, only ,$12,-
500 of these notes we're issued by
the Minneapolis bank. The :categor-
ical statement of the Federal Re-
serve Board issued here shows that
what was done at Minneapolis was a
logical part of the handling tof the
Federal Reserve notes thrnout the
country and as the Treasurer 'of the
United States has NO official connec-
ton whatever with the Federal Re-
serve Board he does not figure in
the transaction at all.
The complete official statement of
these transactions as made by the
Federal Reserve Board in this city
follows:
During the summer of 1915 So
called crop moving deposits were
made by the Secretary of the Treas
ury in certain Federal Reserve
Banks, while similar deposits were
offered to others. On this pGint the
Secretary of the Treasury in his an
.nual report for last year said:
"'In the year 1915-$15, 100000
was deposited with the Federal Re-
servo Banks of Richmond, Atlanta
and Dallas. No deposits were made
in the Federal Reserve Banks of st.
Louis, Kansas City, Minneapolis, and
other cities for crop-moving pur-
poses because-they were not in
need Of funds for such purposes:
"The Secretary of the Treasury al
so published in the same report q
letter from Federal Reserve Agent
Rich in which the latter said:
"'The Northwest is amply sup
piled with funds, and rates for mon
ey are very low. This Bank has
ample resources to meet the current
demand upon it."