Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-02-23
Power Of Fsderal Beard
Will Be ExeEted -
Preserve CredltA
HOPE TO PUT TRADE
ON PRE-wAR BASIS
European Demand vsv Amsslsan
coeds and Money cssdltsd VIA
Responsibility For Iwspalrsd cssd.
Its and High Pr,sss ~ lifs's Ne.
esssitiss--spscuIssiss Nss Wholly
Checked.

- Il a
Washington. Feb. ss.--pstermsna-
tion Of the federal rsservs board %
exert the full power OF tina resesve
banking system in controlline ths
credit system. a course designed %
aid commerce and industry In rs-
storing commerce 70 pre-war equi-
iibrium was disclosed In the boards
public report today. with this a. III
peace time policy the board was prs.
pared to test the ability Of the sys-
tenn. to act as check ON expAnsioa
and to induce healthy liquidation.
The board declared II vas aware
OF the implied power 10 rectify q con-
dition which confronts the country.
This power followed the authority for
and employment OF an elastic system
OF credit and note issue. it was added.
Recommendations also were made 10
congress for amendment OF the rs.
served act which would permit re-
serve banks with approval or the
board 70 establish normal maximum
lines OF credit Accommodations Tor
member banks. An ascending scale
OF rates would bc provided IN the
event money was borrowed above the
maximum line. This the board be-
heves would Induce banks to hood
large borrowers In check and thus
work to the erect that credit expau.s
sion would stop. warning wus eay-
en- that the country must evag4
against too rapiA sxpanpesM Wills
the ooand WAS ID oyu4akhy with I'll
remedy TOT the sv11eoe 0eaSN poene.
90 OUT that re0sNeo 0,o1s inf1ees
se! evic snea IT,
Mooefn nnsmeO = ao0e - cfs
ns uisnsaAp .sl seeS
.ys.eln muN % ~ WAN
aoes 70 pTomote ~ - 81 eoede.
Inc trusn OF this nust p empnaucd
.ne present ssAss % sne WorM
"ns plo.uc.on = - LYME heed
y. Tag Wo1io svesxwu
uiscou = ~ s. =
IN son - ~ inctsase e
alscouns sss tne noard AID tnas
'n's ~ oa tns oiuouaI nnstn0S
o1 osnel countl'e. no w. hoWevsh
p'esupposes normAA conoitons ase
tnese' ~ was pointed oue 90 mot Al
eHIst n TINS ume. Whiis hish r.
ae1Ss oann nss ~ ano
az restraining influence on ocr-
rowefs' II may operate - welI 20 At
tract suppnos OF crcdN from otner
centers' ~ 10 tnis conditions amone
others, that was said oy tne board 70
MAKE imperative tine use onts power
IN oontroiiins credit and starting de-
iiations.
In setuns FORCES TO work 20 check
expansion. the board Declared much
depenoed upon cooperation OF bust
ness and the community generally
rhere 10, however. NO need for dras-
tic or pecipitats action the report
continued. Our economic and finan-
cial position Is. ut the bottom. safe
and sound. Extremes must be avoid
ca. tho processes OF adjusting the
volume OF . credit to = normal hnsis
would DO Effected IN an orderly man
ner Much VIII depend upon tho CO.
operation OF business. Without such
cooperation from the general COM
munity progress can ne neither rapid
or supstantiai.
MUST ABSORB war issues
= plea was maze Tor compieie ap-
sorphon oy investors o. outstnntssns
portions OF war securities issues.
me specinc OF srcater proonrtion
was urged asan a. ono OF the nistn
oas py "hieh the proper nsfance
hlisn. 90 na.erin!iy hded- But TO
peara airecleo A'ten.'on 70 dahssis &
"nich iay IN ens pain q srcaf pro-
dua.ion un'ess Inn. pro1uc.'on " l1n-
hiea,a'ls ioi,o"eu ~ u'sts'pueion ano +
.., aVo'aance oi was.eiu. consunpt'on
e,hpi,as'n.a ,nas nouru'n Mnss
nor DC praol'cea ol ptoouotson WIG
'Nv.m, ..m. .'o.l
ino p uav ~ lSa9sa.
asn.Iso 0 - 60 an
sa",.a., aa. Nv .na pn n.snn.,,, 'un0''on e.
~ n
sr,, =. $4,000. "
Ine ks =. s.cnss ssoase =
a.,.,a lo.a M - ...ui..Ms s..'.l 800