The Cordova daily times., 1921-06-21
RRVEBAlN HAS CUT RATE
 ON DISCOUNTS
BY COL. WINFIELD JONES (Special Correspondence)

 count rate of the Federal Reserve banks over the country are falling and in the case of the Atlanta, Ga, bank the rate dropped from per cent to per cent.
 There are many people, both in public and private life, who point to the reduction as justification of their course last fall in directing a fight on the high discount rates as one cause of the financial depres- sion. One of those persons is Sen ator William J. Harris, of Georgia. Senator Harris introduced bill last December providing that per cent would be the maximum discount which Federal Reserve bank could charge to the member banks of the system.
 At the time of the introduction of the bill Governor Harding, of the Federal Reserve board, wrote let ter to Senator Mclean, chairman of the senate committee on banking and currency, denouncing the proposed legislation of Senator Harris. In a way, the Federal Reserve board con- tended that the discount rate had nothing directly to do with the de- pression, and that lowering of the rate would not help the situation.
 Senator Harris now declares the Federal Reserve officials are point- ing with pride to their latest order of reduction, saying that it will con- tribute a great deal in stimulating business in the present depression. The Georgia senator, along with many others who fought the high federal reserve rates, now feel that the officials have come around to see the situation in the true light
 Ia discussing the reduction of the rate by the Atlanta bank, Senator Harris says:
 "The reduction of the discount rate throughout the country is a vital and material assistance to the people who have carried the heavy load of a great depression through the past several months. Georgia and the southeastern territory should benefit by the new rate of the Atlanta bank. And so will every other section of the country where the lower rates are operative.
 If justification for the fight last fall to reduce the discount rate was necessary, then it comes with the an- nouncement of the reduced rates at this time
 Continuing Senator Harris said: The federal reserve system, un- doubtedly one of the greatest achieve ments in legislation in our history, suffered severe criticism because of the failure of some of the officials to give sympathetic consideration to the business problems following the war. The Federal Reserve board and the banks now hail the new rates as great aid in helping present conditions. The system is all right, but in my judgment some of the of- ficials charged with the operation were all wrong. The country is in- terested in its welfare, which should come before a desire to amass profits for the governments banking system
 "I hope that further reduction in the discount rate will be made to 5 per cent, which will bring 1t to the amount I proposed as the maximum rate which a Federal Re- serve bank could charge when in- troduced bill at the last session, When I proposed that step last fall the Federal Reserve board professed failure to see clear connection between the financial depression and their discount rates. It now ap- pears that they think the reduction just made is to help a great deal"
 natorsHarris is one of the ablest men on the Democratic side of the senate. He has introduced other legislation of benefit to the coun- try during his service in the senate.