Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1922-05-26
creants, whether they be X X. IL. or
not will be brought to punishment.
Dirt Farmer on Federal Reserve Board

Dirt Farmer on Federal Reserve Board
The house of representatives has
passed two important amendments to
the Federal reserve act.
One of these amendments provides
that the next vacancy on the Federal
Reserve board shall be filed by n dirt
farmer and the other provides that the
board must not approve the erection of
any more buildings costing over $780,
600 without first obtaining the consent
of congress.
Authorship of the dirt farmer
amendment is credited to Senator
Smith of South Carolina, and the 9TH
er amendment was offered by Senator
w. j. Harris of Georgia.
Under the law, the Federal Reserve
bank, after paying all expenses and six
per cent to the member bank stock
holders, must cover it's surplus earn
ings back into the treasury.
During the recent defiation cam
paign, accomplished by high rates of
discount, the Federal Reserve bank
made so many millions of dollars out
Of the distress Of the people as to
cause concern as to what might be the
result when the facts became public.
In order, therefore, that. the surplus
might not appear too amazingly great
it diverted hundreds of millions in "eX-
penses," mainly the erection of the
most magnificent banking buildings
that the world has ever seen.
The action of congress in thus limit
ing the outlay that the Federal Re-
serve board may make on a single
building is obviously wise. To leave
the expenditure of such immense sums
as are at the disposal Of the Federal
Reserve bank to the discretion of any
authority not directly responsible to
the people is dangerous. Congress
would have done well if it had gone
further and limited the gross expendi-
lures of the board to a certain per-
centage of profits.
But we are not very much impressed
with the amendment that would re-
quire the appointment Of a dirt farm
err as a member of the board. To be
sure we believe in the proposition
that the dirt farmer is entitled to the
fullest representation. We understand
very well how the board can and does
discriminate against one great indus
try or pursuit at the expense of anoth-
er, and how for the most part the dirt
farmer is made to carry more than his
share of the burden. But we do not
believe there is much guarantee of re-
lief through the mere appointment Of a
dirt farmer" There are dirt farmers
and dirt farmers, and it is quite easy
to see how quicklysalmost any dirt
farmer who might be made a. member
of the board, could forget all the other
dirt farmers. .e,
We used to think the Federal Re-
serve system was 1.-THE greatest thing
ever conceived in finance, and we think
SO yet. fOflneilN we were lihplSSoCu
because of the thought of what fine
thing it would be to take financial cons
troll of the country out of the hands of
the big private banking powers Of the
United States and England, and ad-
minister them for the best interests of
the whole people But since we have
seen how quickly the members Of the
board have joined forces with and sub
mitted to the domination of those
great private interests we have lost
our enthusiasm.
We do not want to be understood as
opposing the appointment of a dirt
farmer on the Federal Reserve board
Far from that. We want To see the
dirt farmer get more consideration
than he has ever had. But we are not
looking for any improvement from the
appointment of single dirt farmer,
even though he be both honest and
competent. If there is to be any inn
provcment at all it will come only
through the closer supervision of con-
gress and. the people over the opera
ton of the Federal Reserve board as
q whole.