The state herald., 1921-09-02

The board should operate in the
open. 1t should be finally completely
and permanently divorced from Wall
Street, and instead of being the ally
of that system 1t should be so con
structed as to assure the nation that
1t is operating for the common good.
"The Federal Reserve Board has in
its power the vital developments of
the entire population machinery for
conducting business. 1t formulates
policies which in brief time stag
mates markets. parayzes businessand
brings wreck and ruin to scores of
thousands of innocent victims.
Increased production of crops and
expansion of trade call for CORE
spending increase hi currency and
credit. not the contraction of these
supreme elements IN the arteries of
our business affairs"
Mr.. Wannamaker said the small
bankers of the United States. because
of tyrannical action of the Federal
Reserve Board. were almost afraid
to call their souls their own" Through
the use Of various disciplinary meas.
ures. the board of the regional au.
thorities can, and do make life
wretched for the small banker" he
said.
Agriculture which stands at the
head of American industry has
no representation on the Federal Re.
serve Board. neither is there anybody
ON that tribunal who has any practi.
cal knowledge OF farming or any real
sympathy with the tiller of the SOIL"
continued Mr.. Wanh maker.
Contraction Of the currency. restric-
ton of credit and all the other evils
which contribute to a policy OF arti.
fetal and inexcnsable dehation has
been encouraged and used by the
Federal Reserve Board, he said.
Bankers who used the organizations
facilities for extending credit were
continually harassed by demands that
they reduce their line. especially was
this true OF those bankers who held
Liberty Bonds as security. Mr.. Wan,
namaker said.
THE Federal Reserve Board by its
policy had not only winked at. but
actually encouraged. usury. Cicero
tells OF reply made by Caesar TO a
man who asked him what he thought
OF usgrr. What do you think OF mur.
der?" shot back the great Roman.
But the policy of the Federal Re.
serve Board is no new thing. The
same was practised In Athens hun.
dreds OF years before the birth OF
Christ. The usury OF those times
had resulted In making virtual slaves
OF nearly all the people. Solomon
came ON the scene and enacted law
cancelling all debts. Who knows but
the people OF this nation may make
a similar demand. We are paying
heavily Inflated debts with cruelty dc.
Hated dollars. ! am wondering II the
people will always tamely submit TO
the process.
''immediate reversal OF the policy
OF contraction OF the currency and
contraction OF credits is not only a
national. but worldwide necessity.
Liberty bonds should he rcdiscounted
ut ga per cent and the rate ON com.
mcrcial and agricultural paper should
ut once be reduced TO I per cent.
The Comptroller OF the Currency
stated on August that the Federal
Reserve banks could now issue g..
692.000.000 OF additional Federal Re.
serve notes. or grant ssO7e. .s69. 900 OF
additional deposit credits and still
maintain a legal gold reserve basis
of 40 per cent. These figures from
tho controllers official report prove
that while the per capita circulation
based upon the gold reserve had IN.
creased si60. 100000 In tho last ~
months the gold reserve had actually
Increased $500, 10000
1T ought to be clearly shown TO
the nation that u raise IN discount or
rodisconnt rates In necessary before
such policy Ia promulgated. by the
USE Of tyrannicnl and arbitrary pow
er the Federal Reserve Board can al.
most In a moment convert a solvent
man Into n bankrupt The power 10
Issue these abuses should be given