The Alaska daily empire., 1922-02-01
MEDDLING WITH THE FEDERAL
 RESERVE SYSTEM.

An effort to change the Federal system Of banking except in the direction of eliminating every political influence that might bear on the Board even in selecting the Boards personnel in strength power for utter imparality, should be discountenanced by the country at large. Any movement put the Board, and as result of that the system into politics. foster class distinction through the Board is not to be commended.
 The bill now before Congress that would make it compulsory to include dirt farmer in the Boards membership, is apparently class legislation and would probably in the end involve the system in partisan politics. The fact that the agricultural
 industry is a basic and it's welfare vital to the countrys well being does not alter the complexion of the proposed legislation. The duty of the Federal Reserve Board is supervise and guide the banking business of the country, rather that portion or the countrys banking that is included within the Federal system It is expected to see that all inter- fairly and mpartially treated Its policies must be consistent with sound banking principles and influenced by the theories of easy money advocates subject to pressure from within as 1t has been from without in favor of any particular interest industry The spokesmen for the agrcul- tural industry claim that the farmers have not been fairly treated, but their claims to be contro- verted by figures recently published which show that from May 1920 to May 1921, the borrowings from Federal banks in agricultural sections of the country increased 56.6 per cent, while in non-ag- ricultural districts they decreased 28.5 per cent. Further, bank reports show that the agricultural in terests have had their full share the couragement of production and marketing. It is probably true that credit has been obainabe for the purpose of enabling the farmer to warehouse his products and hold them until shortages thus artifcally created brought up prices. To have all lowed this would have been unfair to the consumer. It is difficult see where even an actual dirt farmer acting the Board could have altered it's policy that aid could have been legitimaely rendered.
 If the effort to pass class legislation favoring the farmers in this matter is successful there be any argument presented against extending similar recognition to other interests? The transportation industry is second in importance in the country rank ing next to agriculture. The railroads today in bitter need of assistance Why egislate for them and by law representative of the nations railroads to be member of the board? The auto motive industry is another large factor in the trys prosperity and in it's various ramifcations is in none too good condition. It might desire similar representation The American Federation of Labor could. with as good the farmers demand recognition. The gold mining industry all the country has been hard hit since all prices and is still struggling against handicaps which would justify it in demanding a place on the Board. To open up the system to class interest is to make 1t subject to demands from all classes and in the end defeat the very purpose for which it was created and deprive the nation of a sound banking system which has just it from financial panic
 No man may predict with accuracy what Con- cress will or will not do, especially the of election involving the entire membership of the House of Representatives and onethrd of the Mem- oers are likely to vote with both eyes the ballot boxes But if sound business prevails bill to give the agricultural industry special representa- ton on the Federal Reserve Board will be defeated.