The Elk Mountain pilot., 1921-06-09

81 believe it could be demonstrated that the radca
deaton policy of the Federal Reserve Board the riot Of
grain gambling and the last increase of freight rates
have brought upon this country more hardship tragedy
and suffering than the itself Of the three the
credit sringency has been the destructive 1t has
farmers billion dollars alone doubt if cyclone
from Maine California coud have wrought greater des
tructon than this credit killing blight has visited upor
legitimate business The mark of it is everywhere
There is something seriously the matter with
country when who is thrifty industrious and doing
well, lose $4,000 equity because enough ready
cash be had in his community to make another
payment the property. This happened recently to
young Texas farmer and his wife.
In the rich state of Iowa, farmer and his wife who
had paid taxes without skip in lean years and fat
years. for than 80 years. sold up the other
day. because hgh-cost farming and low-vaue farm stuff
didn't leave them enough to pay interest a note.
''This farmers wife wrote letter in which she
concluded
like our blessed Saviour, without home place to
lay heads"
"A tragic ending 80 years of hard work and self
denial These similar cases be duplicated by
thousands.
The country has had dearly bought lesson, but the
worst we may soon confidently expect to see
a general revival of business. Following President
Hardings conference with the of the board
there already signs of credit policy The
administration will require of the board fa-
vorabe treatment to commercial credits based on farm
products and favorable farmers and other
vital industries. This must come crop curtament
will result.
Nothing yet done SO strongly proves the new ad-
ministrations sincerity of purpose to put conditions to
rights in the home land than this prompt action.
While the Federal Reserve Board denying the
charge that it restricting agricultural credits, Fed
eral Reserve Banks mailing printed forms giving
other bankers why farmers paper elig
BILE for rediscount One of these forms which have
gives 119 reasons for declining to accept such
paper.
'The trouble has been due to the domination of the
Reserve Board by the banking and financial element
The board has had chiefly in mind the interests of Wall
Street Its tremendous power has favored financial New
York, of the boards members has made public
The speculator and big middeman have been favored
because they could higher rate of interest while
the farmer, the stockman and the business have
suffered. Dominated by a banker board
making the system a narrow financial in
terest instead of the country a whole, the Fedora
Reserve Banks have made profits while farm
ing and industry and business have been coming
standstill all the United States
while New York banks borrowed enormous sums al
from to per cent from their Federal Reserve bank
and these banks made loans needy borrowers from
90 to 200 per cent banks in Western and Southern cities
had pay the Federal Reserve from S715 per
at moving time that they might the desperate
needs of their communities 1t is that banl
in section paid the Federal Reserve as mucl
interest in two weeks in September
on this little banks entire capital stock would
in year at per cent.
"At the time that the Reserve Board was busily de
hating our farmers and stockmen and giving inter
views the sin of extravaganza sculptor design
ing pair of $4,000 bronze doors for l0-million
dollar Federal Bank building in Kansas City, and severa
sky-scraper buildings costing millions are now bein
built for Federal Reserve Banks in the central cities
"While the debating" process going on bi
banker in Western city, who carrying a group @
country banks to the extent of million dollars
this letter.
This bank is today paying above l2 per cent inter
at the Federal Bank while helping tide countr
banks through their credit emergency. Every $4,000
additional that borrow calls for higher rate. If tn
large banks here do not borrow these advanced
there would be way under heaven prevent half tn
country banks in the state from closing their door
They have the farmers paper. 1t is good, but fc
months he could not sell because of shortage. No
his purchasing power has been in two by declinn
prices, and with high freight rates he does kno
which way to turn. Which means that the business
tivty of this territory has been cut in half"
Concerning the reluctance of Federal Reserve Banl
accept farmer paper for rediscount Kansas banks
writes citing this instance:
AT a national bank in this section, of farm
qualified debt-free and worth Sl5O,000 had bo
rowed $4,000 to feed and ship steers to Centr
Kansas and finish them off cheap The steer
paid for. But the local bank needed money an
sent the note and statement to the Federal Reserve Ban
in Kansas City, for redscount The Reserve bank
the and with the information that it d
consider the security sufficient The local bank
the and it paid when due But the Reserve ban
by rejecting this prevented the local bank fro
p helping another farmer
"In almost the mail the Reserve bank informe
the local bank that paper of Libby, McNe Libby tn
packers would be accepted up to 10 per cent of tt
capital and surplus of the local bank without inanc
statement of the borrower"
During this time that the Federal Reserve Banl
have been pyramiding interest charges to Wester
country bankers that matter how safe their con