Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1921-12-30
Page Two.
A MONUMENTAL SCANDAL
federal Reserve Bank Not. Operated
fGff Public Benefit.
INSTITUTION RmH ION FOR SPECIAL PRIVILEGE


Key 10 the Peoples Liberties.
Greenville Piedmont
irFarmers. and business men who
have suffered from the deflation policy
of the Federal Reserve banking sys-
tenn tenn should read what follows:
wien the New; York Federal Re-
serve bank was being authorized to
spend up, to S25,s46,40S. for luxurious
banking palace, containing club rooms
baths, restaurants and the like, the to-
tai amount of money, which 6 of the
12fFederal Reserve banks were lending
on agricultural and live stock paper In
is states, including all Of the New
Bnglands States. New York; New Jer-
seyiis Delaware, Pennsylvania, Mary
land, Virginia, west Virginia, Ohio,
Kentucky; North Carolina, South Car
oifna,, Arkansas, the greater part OF
Missouri, and parts Of Illinois, Indiana
Tennessee and Mississippi, was only
s17,fS7,0Oo, hardly two-tliirds as much
as the sum appropriated for the pala-
tial bank in New York.
while the money was being appro-
priated for these buildings, the pres
sure on merchants and farmers for the
rspaymenf of their loans are being ex-
perted right and left: -
The Federal Reserve bank in New
York was spending for its palatial
home $25,s46, 400, although tho average
yearly congressional appropriation for
all United States public buildings for
the past twenty years, including post
Office and custom houses, was only
$lo;sSs,77S. - -''s'
THE contract for this palace was let
on the cost plus basis. Fees Of 81
1o6. 900 were paid to engineers and ar
chitects. The furniture, lighting equip
ment fixtures and Kitchen equipment
are to cost more than s1,000,ooo. The
furniture will probably cost sSoo,ooo,
kitchen equipment s50oeo, toilet ac-
cessories" sS3,5OO, "iighting fixtures
ard rehectors' and 'low tension"
S2i4,0Oo,s while acoustic treatment"
FIRE places, n1antels and shades will
cost sS7 1919.
The salaries Of thirty-three officers
Of the New York Federal Reserve
bank have been increased to $40 per
cent Of their former pay, while IL
have been raised 546 per cent. Ten
ofriciais of this bank are each drawing
more than the chief justice Of the Su-
preffie Court of the United States,
nine are drawing more than our am
bassadors to Great Britain or France,
IL more than General Pershins,. Of
them more than United States Sena-
tors. -
AZ New York bank clerk getting a
salary Of $500 was employed by the
New York Federal Reserve bank at a
salary of $4,000 per year. A young
lawyer hired by the bank in 1916 at
$S,s0O is now getting s25,OOo. Another
man is hired at $4,000 a year to give
literary finish" to the banks press
statements.
The, New York Reserve bank lent
to two banks in New York city in one
month s25o,OoO,ooO although the loans
on agricultural and live stock paper
by six reserve banks in IS states to
1000 banks in the same month
amounted to only s15,642,o0o.
The national banks in New York
city were given in proportion to their
total loans and discounts year ago
three times as great an amount OF re-
serve bank funds as our 1858 "coun-,
try" banks were allowed to get in
their hour of need.
II our country" banks had been
given by the Federal Reserve BANKS a
year ago and the same proportion of
Accommodations that was given to
New York banks, sometimes in blocks
OF $4,000, 900 or s5O,OOO,0OO at time,
these country banks would have re-
ceived' for the use Of farmers. cattle
raisers, businesses and industries of
the country thousand million dollars
more than. they got. ..
The defation in their holdings Of
''bills discounted ard purchased" b.
the IL Federal Reserve banks between
Oct. % 1920 when farmers and bust
ness men were pleading piteously for
help or consideration, to November l6
1921 was s1,7S4,OOO,OOO an actual con-
traction from sS.05O. 100000 in October,
1920, to $l,266 900 0O0
These statements. proved by officia!
figures, were by John Shelton Will
liams, former Comptroller Of the Cur
rency, in letter to Senator Overman
of North Carolina printed in the Con-
gressional Record on Monday.
BY way of comment, Mr.. Williams
declared:
''Whcn we survey the country and
realize the ruin which has come to oul
agricultural and other interests coinci-
dertly with the carrying out of the
Federal Reserve Board policies. 1t is
clear that it is rot a small matter.
business man declared the other da!
with terrible earnestness, l had rather
have 10 panics than one 'defation'.
The amount of material wealth
which this county would have by 8