Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1922-12-05
FEDERAL RESERVE SYSTEM
Mighty Good Thing If it Will Attend
to Its Own Business.


to Its Own Business.
George w. Norris, governor of the
Federal Reserve Bank Of Philadelphia
says the Federal Reserve System is,
or will be, in peril unless every clti-
zen lets it be known that he is abb
solutely opposed to any repeal Of the
act or to any statute that would i'm
pair or destroy the independence and
utility of the system"
In support of this statement Mr..
Norris reviews the history of the first
and second banks of the United States
which were dis established because
the people concluded they had too
much power, political and otherwise.
Mr.. Norris is right The Federal
Reserve System may 60 the way of
it's predecessors, but not for the rea-
son he suggests, which is that those
who have suffered are inclined to hunt
for scapegoat upon WHICH they can
piece the blame for their losses and
misfortunes."
We believe in the Federal Reserve
System. We realize its enormous
value to the country and we should be
sorry to sec it done away with, but
it's unpopularity and peril are its own
fault and unless it changes it's ways it
will go. The people blame the officers
of the Federal Reserve System, not for
r&ising the interest rates or any other
use of their statutory powers under
the Federal Reserve Act, but for their
extra legal activities including:
First. Their preachments upon the
need OF defation and liquidation,
which greatly increased the demorali-
zation ard depression of the period
from which we are just emerging.
Second. Their inquisitorial investi-
cations into the business of merchants,
manufacturers, and others to get the
data which they print in the reports
that the Federal Reserve Board and
most Of the regional banks issue each
month or oftener. For these reports
and the money spent on them there is
not a shred of authority in the Federal
Reserve Act.
Third. For the resentment and
turbulence of the Federal Reserve
Bank officers under criticism and the
propaganda they have conducted in
defense of their policies, including the
distribution of speeches and pleas in
abatement" by Senator Glass and
others. They have forgotten that they
are the servants of the public. and
have assumed the airs of autocrats.
Fourth. For their vindictiveness
toward those who criticized them and
the bludgeoning methods used in try
ing to induce non-member banks to
join the system and in compelling re-
calcitrant institutions to accept the
par collection" plan.
Fifth. For the unwisdom and eX-
travagance shown in the construction
Of the new buildings now in course of
erection for several of the Regional
Banks and branch banks. 1t is much
10 be feared that these buildings will
prove to be permanent and irritating
memorials to a rccklessness in expen-
diture that is exhibited not only in
the way they have been planned but
also in the salaries paid to the higher
officers of the Regional banks.
The duties of the Federal Reserve
Bank officers and the Federal Reserve
Board are clearly set out in the Fed
eral Reserve Act Not n word is said
about compiling or issuing reports or
advising the public how to conduct its
business. They are authorized to
raise and lower the rediscount rate
and if they will but confine themselves
to this and conduct the business of
the banks economically, they will be
less unpopular. In this respect they
would 90 well to follow the example
of the directors of the Bank OF Eng
land. They raise and lower the bank
rate. but they do not send out qucs-
tionnaires or issue reports to the pub
lie, or attempt to be the deus eX
machina of business in general as have
the officers of the Federal Reserve
System almost from the first.
The Federal Reserve Officers have
q quasi governmental authority and
status. For this reason they are sup
posed to know more than other people.