Pine Bluff daily graphic., 1920-09-12
|res Money Borrowed of $, Used for Political
 Purposes
for Robert L. Owen of OlklahomaD

Olslahomao
 onths ago having heard .n1 Reserve board contem- aeisi ;s;ng the rate of interest ia psserye banks l entered a o;rst it on the ground that bd as have the effect of raising a d. na.' af interest of all bank s,nnicipal loans, farm loans Eivate loans throughout through n.oat1s the ], 'tI the cost of living; woule nroduction , and distribution !na about a period of indus a1 was in vain. The policy ppted pptal by the board of raising " and advising the banks o1 a ntrv to "deflate" credits.
 n'tS ts;s policy the confidence ,onntry has been shaken, g # depression has taken place parts of the country ,; ana aaa IS Ded in all parts of the coun, n the floor of the senate ade a number of speeches e this policy, and have put lr sressional Record several let. ! srsssed to the President o1 .ed States, showing why this vas harmful. ,.runoent a of the Reserve Boaro eyedits have been unduly ex' hv people speculating in by people buying commodl' hoarding. h.s a measure of truth, but edy for such abuses of credit be applied individually ny \. requiring large margins fol Deculating in stocks and re gradual liquidation. The ould be a remedy for those for monopoly of commodities f;teering. As a rule, the prof re not profiteering on credit hair own resources. To raise of interest and to demand deflation is not a remedy uld be applied. It is a gross Q apply such treatment te te business engaging in ac' Eoduction and distribution e world is in such urgent increased production. If, fol oil men engaged in produc- denied credit for produc- dlminishes production under of supply and demand, ane lower the price of oil. Il ease it.
 urse, the producers in ex- eed might temporarily sel net at a sacrifice to save from bankruptcy, but in tht the policy is false as means ing the price of a commod' true way to lower the price oddities is to stimulate pro. and by increasing the pro, the price under laws of sup Remand will be automatically feet of the policy of the shown in breaking dowr or the market value of al securities, especially indus nrities, and not even except fnment bonds.
 palities cannot now sel Ids advantageously and thu f Liberty bonds face a los. est security in the world o: to 15 per cent, due to thu pn of credits by this policy prmal rates of interest il br 50 years before the wa ere they do not pay inter posits, from 3 to 4 per cent lgium, France and Engla~d lea, where they do pay in
 deposits of from 2 to the normal rate of interes from 5 to 6 per cent.
 he unwise policy of the Re rd commercial paper of thu ity is selling for 8 and and in reality many busi whose credits are really paying from 10 to 15 pc, money through vraious de ? as commissions and dis z. This raises the cost O es necessarily and in e cost of living.
 eral Reserve Act was fram P best opinion of Americ, lrpose of giving stability t,
 system of America an, reasonable and stable rat, The power of the credi
 the hands of the Reserv, 'normous and is now bein,
 not for the purpose O
 credits, but for the as purpose of deflating cred ng down confidence, and i
 on an industrial depress may be extremely harmful pmptly checked.
 KS cannot be relied upo, initiative because they ar, < oominance of the Reserv, the Reserve Board, an. put themselves in ieop y Y should dare to assail tn, 'ae Reserve Board.
 nDefs of Commerce are diff :uased, They are peculiar ..ms of this abusive power an create public sentimen
 demand for change 0. .s w believe it would be wis, sss0lution ss urging the F ed .e Board to restore tn, ases which were in cxis
 ae ps she war, and certainl, Y rates to what thev wa,,'