The daily Alaskan., 1921-07-05
Attempt Force Banks Join Board

Washington. July,--"Oticial per secution and oppression in the Unit ed States which would have done credit to the abso,uJ.sm of Russia in its puimiest days has been uncoy- cred by a recent decision of the su- preme court" declares Hon. Jona- than Bourne. Jr. The federal re- serve hourd-the most powerful it-| uaucial organization in the world has been accused by the supreme court of making warfare upon leEtt- innate creations of the states
 Although there has been hint ut the facts iu the past a full statement uf tho manner in which tine federal reserve board abused its powers has unf heretofore come to pubIic atteH- rion lt appears that the board uu- drrtuok Co use its official authority iu uu iurg-l way to force state bauoS to becuu.c members ot tte reserve sssIrm a-ltu&t their wishes. Various sc.emcs were resorjed Co but in spite ot rarsr measures many of tue banks undertook to preserve tHrir iude- peudrucr and taeir right to conduct their business in Jc,oydLu,r with the laws uI the state rather than of the nation. TaiS right tine federal law guaraute"d IHew.
 As a last resort. in it's efforts to punish state banks that refused to become members tEc federal reserve bank would have one ot ts agents gradually accumulate cheeks on the state bank until the amount of such racrks exceeded the amount uI eur rrucy said state bank w.s required lo carry su it's vaults IL would then send It's mru hurrirdly and UueNpect- rdIy to demand payment ut the checks iu cash. in default of which ,ur checks were sent tO protest and the news spread about the commuui- ty that the bank Was being question: ed by the government; that lt had dishOnoved checks. and the result | would be very likely run on the bank and iJs destruction. The bUnN ruuld save itself from this disaster by Sjgu.ug au agreement 10 submit itself to the orders ur the federal reserve system.
 TO protect itself from Jhe danger of pvocredlngs ot this kind the Am rriyau Bank and Trust Company ot i Gpug-ia appealed Go the courts of prevent tae Federal Reserve Bank of Atlanta from continuing corrciye methods >ucl as indicated above. It irs drCruse the federal reserve bank ! asserted that the holder of checks has a rtsbJ to retain them and pre- sent them aJ his pleasure,
 The supreme court held that while this was true SD long as the motive is an homes, one. the right can not be exercised for a dtshouorabIe pur- pose. The court sajt. Banks as We know them could not exist if they could not rely upOu averages and lend a large part ui the money that they receive from their dcpusitors on the assumption that not more than certain fraction of il will be demanded on any one day. If with 1 cit word of ta,seHood. but acting from what We have called diSinter- ested malevoIence, a man by perse- rution should organize and carry iu- to eGect run upon d bank and ruin it. We can not doubt that au uytlun would lie \ similar result. even if less complete in it's eUecI .s 10 be expected from the course that the defendants are alleged tu iut".d. and to determine whrtuor they are au- rhoriled 10 follow ,uaJ course it is not enough to refer to tine general right of a holder of checks 10 pre- sent ,.em in n,dy for Jhy pUrpuse ut breaking down the petitioners business as now conducted s justi- fed by the ul,~riur purpose in view.
 I've do not need aid .rom the de- bates upon the statute under which tine reserve banks exist to assume that the United States did not intend by the statute to sanction this sort of warfare upon legitimate crea- JiouS of the states.
 This instance of dictatorship by an arrogant bureaucracy will do much to discourage beStowing simi- lar powers upon governmental boards in the future"
 PUEBLO DEATHS ARE
 ESTIMATED AT 800