The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1920-09-10
FEDERAL RESERVE
BANKS EXERCISE
UNLIMITED POWE

Continued From Page One)
Reserve Bank alone is the judge as
10 what paper is spec ulative and all
the industries are being handicapped
by their drastic action along the lines
mentioned
Oil "Non-Essential' Industry.
For instance: One of our largest re-
sources in this state and nation is the
oil indusry-and oil mems paper is
regarded as "non-essenual' and is not
eligible for discount at the Federal
Reserve Banks although they use this
money in drilling proven properties
The oil industry is however very es-
sential, as ii is now our greatest
means OF fuel and is used in all man
ners of transportation and IS, there
fore, necessity. Ii should have the
encouragement OF the financial insti-
tutions OF this country
Stochraising Industry Crippled.
The markets on wool. cattle and
sheep are very uncertain and il is
practically impossible for these men
to secure credit and as this business
is carried on by extensions Of credit
through the various banks, they are
forced 10 sell on lower market, their
pastures being untitled and their grass
bringing them no return or profits.
For instance: l have one friend
who has several hundred thousand
pounds Of wool SOLD at SIS cents the
man who contracted for this wool is
unable to carry out his obligation
owing to financial conditions-and has
failed the grower is now offered 10
cents per pound for this wool.
Farmers Feel Strain.
"The same condition is beginning to
exist with our farmers as already
exists with our stock raisers Wheat
has declined 50 cents on the bushel
within the last 80 days, owing to the
shortage of cars and the failure or
their locSl banks to finance the mar
keting OF the grain. Cotton has drop
ped more than Is cents a pound with.
in the last 80 days with the 1920 crop
hardly beginning to move, In my opin-
ion, If this financial condition is not
relieved cotton will go down to IS or
20 cents. This means that the cotton
growers Of Oklahoma alone have
lost more than Sl00 900 10000 in the
value of their cotton crop in ,ast 60
days. This decline does not benefit
the consumer Of this country. by rea-
son OF the fact that the manufacturers
will try TO hold UP their prices; also be-
'ause most Of our cotton goes to En-
'ope.
Reserve Banks Dictatorial.
"The Federal Reserve Bank has re-
itricted credit through banking insti-
utions Of the country both by re-
itrieting the amount and c,ass of
PAPER that they handle. In addition
o this, they raise the rate OF interest
Is the loan is increased. In other |
words, If Z bank borrows very much
money, it would pay the Federal Re- !
erve Bank about 10 per cent interest. |
II course. this makes the banks slow |
n making loans.
Does Not Follow Intention"
In our opinion the Federal Reserve |
'ahk has plenty of credit power yet.
Without reaching the limit OF safety.
We are informed by very reliahle
ources that they first deduct IS per
ent off their reserve before figuring
- This S5 per cent would give sew
raj billions Of dollars credit. Also,
was the intention when the Fed
raj Reserve Bank was organized not
make money, but TO give all classes
men fair credit"