Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-11-01
FEDERAL RESERVE EARNINGS.

The Federal Reserve system is the financial arm
OF the government 1t was stated distinctly at the
time the system adopted that it had no money
making purpose 1t was to be the servant of the
people to facilitate business.
How far it has departed from its announced
purpose is shown by facts given the floor of the
senate by Senator Watson. These facts were undis-
puted and may be accepted az true. Senator
Watson said:
1--WE will take the Boston bank. The capital paid
in was less than IS 900, 900 The gross earnings
(1s2o) were s12, 900. The expenses were 81,
900, 900. The total net earnings were s1O,OOO,OOo
Take the bank at Philadelphia. The capital paid
in was IS 100000 in round figures; the gross earn
ings were more than s11 100000 expenses $4,000
900. 1t the government that was doing that
What right did the government have to exact such
a profit from the people Of Pennsylvania who wish
ed to avail themselves of the resources Of that
bank?
.oTake the bank at Cleveland O. The capital
paid in was s1o,O0O,Ooo The total net earnings
were more than 81 900, O0O Is not that than
100 per cent? Has the government right to make
more than 100 per cent out Of the people who pat
ronize the governments own bank? If the govern
mont sets that example what will thesprivate bank
er do?
eve will take the bank at Richmond Va. Tho
total capital sS500.000. The total net earn
ings 100000 very nearly double the capital
stock.
AZ take this from the seventh annual report OF
the Federal Reserve Board for the year 1920.
"Now to the Atlanta bank, in my
state. The capital paid in 100000. The
gross earnings s7500,000 The expenses were
$1355.000. The total net earnings were s6,OO0,OO0.
or 2000, 900 more than the capital stock. What
per cent is that? Nevertheless, my stately friend
from Utah fMr. SmooD seemed to be indignant
that anybody was charging corporations with maxi
ing excessive profits But this report relates to last
year. and It is the government making these huge
profits. II the government profiteers then private
corporations will profiteer
Take the Chicago bank. The capital stock
less than $4,000 900. The net earnings s25,-
100000. What per cent that?
LET go to st. Louis. The capital stock
was slightly less than $3,500,000. The total net
earnings were s5,250,000.
take Kansas City. Mo- The capital stock paid
in was s4,500,0 900 in round numbers. The total net
earnings s5,500,000.
take the Dallas, (Tex.) bank. The capital was
slightly less than 900. The total net earn
ings were s1,67S00O.
take the San Francisco bank The capital paid
in was less than ,000 The total net earnings
were $40 100000. What percentage is that? What
is that but excessive profit, and why should the
government be maintaining lot of bankers the
board here at the head of the regional banks rob
bling the people in this way? 1t is not legitimate
business. 1t is robbery under the forms Of law
The Journal feels that the exceptions of Senator
Watson are we'll taken. This enormous total in the
United States was taken from the people who were
under the necessity of borrowing money. This is
crime, but the serious phase is the perversion
OF the system from its mission of service into
moneygrabbing enterprise
Senator Watson charges that the big fnanciers
of the United States have seized control of the peo-
pies banking system. We think so. This is to the
harm Of the people and the small banker. What
il to be done about it?