Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1922-01-20
73rd YEAR

SAhIiiAh WAT III q tANioi itFNl
System has Disseminated against Ii
agricultural interests of the Sout
and West, and that President Hare
irg should place on the board a pra
teal farmerto see that these inter
eSts get a square deal, former Gov
ernor Chas, II. Brough, in his &C
dress before the Mississippi Deve
opment Board recently, caused
good deal of comment, favorable an
unEavorable, his remarks on the Fed
eral Reserve System being answere
today by +. W. Foote, vice presiden
Of the First National Bank, which i
a member Of the system.
The following remarks concerning
the Federal Reserve System Were
made by Gov. Brough during hi
speech.
"My friends, while | am not al
authority on banking, and would not
presume to speak as al authority
yet it is very apparent that the Fed
eral Reserve System, which | regard
as ~. greatest act that was ever
mess and % ;ke~cg's~:NqsAs Il any
the Federal Reserve System, ana
their associated banks by the agri-
cultural interests of the country.
Mr.. Houstorb a great Chicago
banker, in the last number Of the XII.
wants Magazine, says that the Fed.
eral Reserve system now has $780,.
600 600 nj outstanding agriculture
loans, Of which sos, 900 1000 has been
furnished by the states of Mississip-
pi, Arkansas and Tennessee
IF 81 per cent of the deposits in
the Federal Reserve banks of the
country are from agricultural peo-
pie, then the proportion Of agricul-
tural loans in this country instead of
being $3.50, 000, 900, ought to be 49,
100000 900, and !, for one believe
that the president of the United
States ought to be required to put a
practical agriculturalist, "A practical
farmer upon the Federal Reserve
Board, and that the South and re
West should receive more oonsidera-
ton at the hands of those who man
age the greatest fundamentally for
good that this government or any
other government has ever seen.
There is no doubt that the FEEDER
al Reserve system wrested the CON
troll of money from Wall Street, and
vested it in IN institution supervised
by the government. II is apparent
to all of as that there has been a
period of deflation since the war.
We don't want as %extravagant imitation
this policy of deflation has beer
extravaganza, particularly in view of
The fact that the city profits Of the
Federal Reserve system in the city
If New York have been PIG per cent.
The profits of the Federal Reserve
'ystemout of the city of New York
averaged over 100 per cent.
Mr.. Foote Answers
In answering these statements, Mr.
'oote had the following to say:
Il know that Mr.. Brough is a man
# the highest integrity, and really
what he has said to be true.
iowever, these statements leave a
'ad impression of the FEEDER
! Reserve system which through my
ssociation with it since its concep-
ION feel it my duty to correct.
Mr.. Brough states that 81 per cent
I the deposits of the + deral Re-
erve system come from the agricul-
ural interests of the country. He
ollows this up by saying that the
should be divided accordingly
nd that the agricultural loans are :
My $3.50, 000, 900. ;
This leaves the impression that the ,
ystem has worked against the farm !
:" This. however, is untrue and {
Misleading. Even admitting that the ,
ericultural deposits are 81 per cent, $
hich | do not believe to be a fact, $
does not mean that the depo i I
'rs of this 81 per cent are being dis
'riminated against.
ut has been very popular to charge q
lat the Federal Reserve system has 5
ven material aid and comfort to n
Street, and itt critics lave i
'emingly e~ndeavored to lead the
.ople to believe that much of these 9
ust funds have been sidetracked to :.
all Street for the purpose of spec :,
alton. II must be remembered that /
Federal Reserve system discounts l.
investment loans and makes no :,
ans whatsoever except in support =
current agricultural land indus y
enterprise aai commercial =
per flowing in one way or another e
erefrom and upon government Sc -
"
To illustrate the absurdity of this
pc of charge, and how Impossible
1se allegations ere. | refer to one n,
the principal choice morsels the la
itators have fed to the public. II
ev cite loans aggregating $751; n,
1000 made to one New York bank, d
evidence of what the system was T.