The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-01-23

over after examining reports and
figures I have reached "A different
conclusion.
II find Notwithstanding tho fact
that tho federal reserve BANKS, with
the approval ~ the federal reserve
board, have increased the discount
rates. and have made rulings with
reference 10 certain classns - paper
that the discounts bv member banks
with the federal reserve banks In
creased 1921 100000 from December
90. 1919, to October I. 1920, and
that this Increase does not measure
all tho aid given to member banks
for commercial ana agricultural pur.
poses during that period for the rca-
ROn that the loans Tnado to member
banks by the federal reserve banks
on war paper, Including coftlncntcH
OF btcdneHs. dccroaacd f327 900,
600. and that the amount ~ bankers
HcccptHucos held by the federal rc-
goryo banks during said period 40
creased f2si.0O0. 900. n viii thcro
fore be Hrtn that tho credit released
by tho decreases ln haukerF accept
nnccs and loans mw'e on war paper
was consumed by other diacounta
Rud wns put out in loans for aRti-
cultural and commercial purposes,
making IN effect a total incrcnHe
during said period ~ about ten
months of i2,0OO,0Oo.
"To give you Como idon OF 'ho
vast amount Of credit extended by
the member banks IN the United
states win onll your attention TO
the complete report 81 tho comp'rol-
lor of the currency ~ Juno 80. 1890.
IN when tho total resources of all
the member banks of the federal re-
serve system amounted go t2G.3g9, ,-
6d7. 900. These banks worc required
by law to keep the reserve ~ mp
proNimatrly Sh per cent which
amounted 10 fl7gg.o13.G 900. which
left ~ total sum for loans and IN.
vcstinonts of f2AG10.5tdO0O Nc
cording TO the Same report the total
funds loaned md invested by said
member banks amounted 10 f27..
OG1 l39o 600. This disrlugr1 that tho
member hanks or tho federal reserve
system Ind invested In loans and in
Vcstmcnts s2.4JO,O 900. 900 moro than
! they owned. and this sum was bor-
rowed from the federal reserve
l bauka
Under the old national banking
| law this tstr1 credit Of $3.50. 600. d.
| 200 would have been impossible
/ Can you say that the federal reserve
| banks during that time were re
strictlng credit, or rather would you
say they were encouraging the too
eNtr0VHgnnt granting of credit by
tho mcmbcr banks thcmselveH2"
Concluding Judge Stnndovcn said .
! y have boon asked that II tho fcd 20
eral reserve act containH skeleton
I am 10 expose II have read tho
act. I have studied tho rules and
regulations ana read a number Of
articles In favor ~ the act aud u
largo number NJ criticisms directed
against liz up"iaiiuu, und / nave
reached the conclusion that tho fed
cral reserve act ia the backbone of
our financial structure: that 10 H.
tho strength of tho needy In his dis.
trcss. and that II ~ built upon a
solid foundation. and that while
there may be amendments necessary.
az conditions change, the country ia
To be congratulated upon the wisdom
ana foresight Of the farmers of this
act, and that tho government In time
OF need used the federal reserve
banks Of the country as It's right
arm tn finance the great operations
OF tho war, and through this system
we came hut uf the war bigger and
stronger than before we entered, and
that we viii contlnrn to enjoy the
bepofiia Of this system in time Of
peacc, and that our financial prob
lcn1s viii be worked out with the
aid or this great financial system" a"