The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-07-08
WOULD LIMIT RATE
OF RESERVE VESYSTEM
FULMER BE.
LlEVES CHANGE NECESSARY
Member Of Congress, on Way to
Orangebure, Discusses Bill
introduced by Him

| Representative H. P. Fulmer, who
was in the city yesterday on his way
home to make an address at Orange
burg on the Fourth, is very much
pleased over the reception that has
been given to his bill to limit the rate
of interest chargeable by the federal
reserve banking system. He declares
| that this great central bank has piled
up many millions of dollars which are
not useful to itself and have been
taken at real deprivation to the
small banks of the country, and their
customers. Mr.. Fulmer says that this
bill has started great deal Of action
in Washington, and he believes that
favorable attention would be increas-
ed if the bankers of the country
would write to the members of con-
gress and urge it's passage. Himself
| banker, Mr.. Fulmer feels that he has
practical, common sense remedy for
! some of the big evils of the day.
Wants Five Per Cent
Commenting upon his bill, Mr..
! Fulmer said:
81 believe that if the high rate Of
} rediscount charged by the federal re-
serve bank is reduced to S per cent
it will do more to bring about .: re-
vival of business than any other one
thing we could do.
'It is generally pointed out that it
will be impossible to reestablish nor
NAL conditions and bring about re.
vival of agriculture, connefcs aaha
industry except by lowering OF tine
rediscount rate on agricultural and
commercial paper to from 4 IL per
cent to 5, per cent. I believe tnat
such reduction is a. great tsslonal
necessity. a world necessity, and it
is only in this way that prosperity can
J he promoted in America and. That
! Europe can begin TO rehapiittass.
Everybody knows that the testr.e-
tion of credits and the extreme hlgn
! discount rates have stagnated indus
trv and commerce and paralyaed agti-
culture. ",
81 am sure that am ycieing the
conclusion of every bank man in the
AGRICULTURAL sections Of America: in
asserting that, if the bankers obey
the law in regard to the rates OF IN
terest that they are allowed to charge
their customers, under the national
banking laws, and are at the same
time forced to pay such high reois-
count rates as are now charged by
the federal reserve banks, they will
have to go out of business. That
seems to stare us in the face as GER
tainty.
"The people of the United States
understood that the creating OF 1he
federal reserve bank system meant
the financial salvation OF America
and her people, by being able at all
/ times and under all circumstances to
take care of any situation in any sec
tion of our country, and in manner
that would not only hold up panic
but in such manner and at such rates
Of discount as would make the mem
ber banks financial strongholds. All
of which would mean so much to the
building of good roads, the educating
of the people and the development OF
our national resources.
Unreasonable Rates
"If YOU will read the combined
statement of the IL federal reserve
, banks made at the close OF business
i Nav 25, you will be struck with the
indignant feeling that they have vlo-
lated right and reason by charging
unreasonable rates of discount to
member banks. That statement shows
that, after paying per cent divl-
dends to the stockholders on pald-ln
capital of s1o2,17a,ooo, they have
surplus of s2o2,o36,ooo, besides $685.
'271,OO0 reserved for government
franchise tax.
Congress seems to be long on Gre
ating departments and approprlatins
large sums to be spent by them, and,
after making these appropriations, in
setting aside for them sums OF money
in the way of contingent funds, al
lowing them to spend not only these
but to come in at later day and
secure still more under defciencies->
which is borne out by the passing
yesterday of deficiency bill carrying
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