Vernon Parish Democrat., 1921-12-01

OySlem and TO demonstrate the ConSe-
quences of them that these errors may
be avoided hereafter. the operations OF
the System perfected, and its great
purposes fulfilled.
The most important of these pur-
poses is to assure equable and equita-
but distribution of the money supply
of the country that it may be available
where and when needed for actual pro-
ducdon and legitimate commercial pur-
! poses and not accumulated in places
and for purposes where it is not needed
for legitimate uses, o. is misused Ell
ther to extort inordinate gain from need
or to promote speculation, destructive
IN some, and adding nothing TO the
country's real growth and progress.
Fortunately, the facts and statements
from both sides are of public record
now, and will be printed in the pro-
ceedings of the Joint Committee Of Con-
gress investigating especially from the
standpoint Of Agriculture-the admin
istration Of the Federal Reserve Syh-
TEN.
System Dsspises til, Country Banks
The record shows that a year ago,
in September, 1920, when agricultural
sections were earnestly pleading for
additional help, the national banks Of
three big cities-New York, Chicago.
and St. Louis-had received accommo-
dation5 (nearly ell from the F'ede.al
Reserve Banks) through rediscount$
and bills payable. to the extent Of 24
per cent Of their total loans and dis
counts.
AT the same time the national banks
known as the country banks" that is
to say, the banks outside Of the Re-
serve and Central Reserve cities, had
received accommodations in the shape
of rediscounts and bills payable for on
ly 10 per cent of'their total loans and
rediscounts.
If the country banks had been
granted accommodations for the same
'1Dportion Of their total assets (exc!ud-
ling rediscounts) as the national banks
10 the three big cities, they would have.
'seceived at least---.-.-. ST, ,630,000,000
instead of -.-.....-...-.-.--.... 596,000,O00|
which was the total amount Of all the
"rediscounts and bills payable" which
all the country" national banks in the
United States owed on September s,
1920,
If that additional amount Of credit,
$1,034,000,000, had been supplied to
them up to that time or during the en-
suing twelve months it is fair to assume
that our country might have been
saved billions of the losses we have
suffered. not only from shrinkage Of
values, but from the violent and sudden
collapse, resulting in disturbance and
disaster without compensation and cor
responding advantage to consumers.
SYSTEM Did Not Assist PrOpslIy
will now submit certain official
figures from the annual report Of the
comptroller of the currency, submitted
to the Joint Committee Of Congress by |
me on. the End and 3rd ultimo page
222, Comptroller's report for 1920. |
Comparison Of the loans and dis
counts and of money borrowed by re-
discounts and bills>payabIe on Septem-
Der s, 1920. by the National banks of
the three cities of New York. Chicago, |
and St. Louis, as compared with the
country" National banks; that is TO
say, all National banks outside Of the !
central Reserve and Reserve cities,
l St. Louis 1886 .00O,000ETAOIl |
. Sept. 8, l920-Total loans and dis |
counts to all customers, including re-
discounts: New York, Chicago and ST. |
Louis; $3.695,000,000; country"
banks, $5,853.0O0,000. Accommoda- !
tions obtained by rediscounts and bills
payable: New York, Chicago and St.
Louis, $896,C00,000; country banks
596.000.000. Ratio of money borrow
ed to total loans: New York, Chicago,
and St. Louis, 24.2 %; country
banks, 1929.
These figures show that, although
the country" banks were carrying ST. /.
l56,000,000 more of loans and dis i,
counts" than the national banks in the
three big cities, yet the accommoda- !
ton which they had been able to get
fusm the Federal Reserve Banks whose
principal function is supposed to be to
extend aid in times Of emergency and
stress, was actually about $300,000.- /
600 less than the accommodation grant
ed to the national banks in the three
big cities.