Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-07-29

have been admonished and restrained by the
Federal reserve administrators precisely as the
village man or the country farmer, even with
ample assets is advised and restrained by village
and small-town bankers when showing dis
position to be too speculative or extravagant
These things as all Of you know, occur every
day.
eighteen months ago, while this speculative
orgy was under full Roadway, addressed a writ
ten communication to the Federal Reserve
Board, protesting against the extent to which
the funds Of the system were being used in fam
ming the fires of speculation, and 1 pointed to
one instance where the Federal Reserve bank of
New York was lending to institution about
$3.50 000, OOO twice as much money the Federal
Reserve bank of Dallas lending to all of the
1000 member banks in that great district en-
bracing the state of Texas and parts Of the states
of Louisiana, Oklahoma, New Mexico and Ari-
IONA 1t was also shown that the New York Re-
serve bank was lending to that particular institu-
ton at one time an amount equal to nearly six
times the total capital of the Federal Reserve
bank of New York"
Mr.. Williams bitterly assails the integrity of the
management of our great American banking sys-
tenn. He says:
"Stenographic reports were taken Of certain
important discussions within the board shortly
before I retired and at the time the record was
made, the governor Of the board stated before
the board that he would furnish copies of the
proceedings to myself and to another member
who was retiring about the same time. Subse-
uuently he changed his mind, denied making the
promise, and notified me that the record of The
meeting referred to would be kept under seal,
and the promised copy has never been supplied.
If he really thinks he made no such promise his
memory has become dangerously feeble. The
records of those meetings, if they have been
preserved intact, may be interesting some day
to an investigating committee.
1.-THE Federal reserve system, despite its
faulty administration, in some respects has been
of tremendous service to the country; but from
the very outset Secretary McAdoo and the more
liberal elements of the board had to combat
and oppose the reactionary faction which fought
for the Gel azation rather than the democra-
tization Of banking power"
Again he says:
THE heart-breaking and purse-breaking col
lapse in prices of farm products and other COM
modities were referred to in the board in terms
of satisfaction, indicating the success OF its
policy of deflation, and in response to my ap-
meals of more than six months to apply the
brakes and secure a more orderly recession IN
values their response was, AS expressed by the
governor of the board to the effect that bal
loon was merely being punctured to let the gas
escape My reply this point was that wise
and sensible men should try to bring baloon
laden with human lives and fortunes safely to
earth by the intelligent of valve, ropes and
ballast. not by precpitating sudden and ruin
GUS crash"
We regret that space forbids more copious quo
ations Mr. williams charges the grossest extraVa-
yance to the board Throughout he charges discrlm-
nation against the agricultural livestock and man
la cturing interests and favoritsm toward specula
ions.
In view of the prior attitude OF this paper to"a'u
.,o ,,roeont management of the reserve system we
,re fIattered TO have man of the highest integrity
and ability who has been in position to know thus
confirm the suspicious have voiced