Mohave County miner and our mineral wealth., 1922-05-19

rAGE TWELVE
 The Kinds of Loans Federal Reserve
 Banks Make
 The simple transaction of the Aus tin grocer is typical of the vast mass of loans which enter into the opera tions of the Federal Reserve system. Suppose, for instance, that instead of the grocer, the borrower is dry goods merchant in Butte, hardware dealer in Chicago, a steel maker in Birming- ham, a lumberman in Seattle, or an exporter in New York-each a respon- sible business man in good financial standing locally. Their borrowings from member banks, whether large or small, can in turn be borrowed upon by the member banks at their Federal Reserve Banks, provided they arose out of the production, sale or market ing of goods, and are within ninety days of falling due.
 Loans to Agriculture
 Suppose, again, that instead of the grocer of Austin, the borrowers are farmers, or planters, or cattle men, likewise in good financial standing To- cally. Their borrowings from member banks, whether large or small, can be borrowed upon by the member banks. at their Federal Reserve Banks, provided they were for agricultural purposes, including the raising or mar keting of livestock, and. are within six months of falling due.
 Loans on Government Bonds
 Suppose, again, that the borrower is anyone who owns a United States Gov ernment bond or note, and puts it up at his bank as security for loan' Such borrowings from member banks whether large or small, can be borrow ed upon by the member banks at their Federal Reserve Banks if they are within ninety days of falling due. 1t was loans of this sort rediscounted al the Federal Reserve Banks, that en- abled millions of people turnout the United States to subscribe to the Lib- erty and Victory loans.
 How One District Helps An
 other District
 Just such reasons as prompted the Austin member bank to borrow from it's Federal Reserve Bank, sometimes cause a Fedesal Reserve Bank ltsel1 to borrow. Borrowings by many mem Der banks, representing loans tha' they have already made to their GUS toners, sometimes draw down the res ervoir to such point that it must b' replenished if the Federal Reserv' Bank is to Continue to lend.
 This country is so vast that on section of it is apt to have credi to spare when another section need credit. All that is necessary is
 quick and easy means for bringln them together. The Federal Reserv system furnishes the means and ha often used it. A Federal Reserv Bank renews its power to lend by bol rowing from another Federal Reser' Bank in district where the demar for credit is smaller. It puts up security the notes upcn which it t' lent to it's member banks. In oth words, one of the twelve reservoi in the countrywide system pipes some of the surplus credit from ol [ or more of the other reservoirs al < so renews it's power to lend. ..... <; Industry and Agriculture Cooperat
 This is the kind of beneficial coope ation between agricultural and indu trial districts that actually took pla in the difficult years of 1920 and 1o2 At times, when agricultural distric such as Richmond, Atlanta, St. Lou Minneapolis, Kansas City or Dalls having received large amounts s
 money in payment for their crops, h surplus credit, they lent it to indu trial districts which were in need a it. At other times, when the stuati changed and industrial districts su as Cleveland, Boston, New York
 Philadelphia, having received payne { for goods, had surplus credit, tn lent it to agricultural districts.
 Thus an individual in need of mo D, ey may borrow from the member ba
 and the member bank may borrt from the Federal Reserve Bank, a the Federal Reserve Bank, in tul may borrow from other Federal K serve Banks, taken together, form o ultimate reservoir of credit. Tho thu resources are very great they are T unlimited, and in times of extraordi ary credit demand it is to the intere of everyone to make sure that t reservoir is not drawn down so lC as to impair it's continued usefulne - The Power to Issue Currency
 Very closely connected with t power of the Federal Reserve Ban to lend is their power to issue cure cy-Federal Reserve notes. The DO CT to lend, taken by itself, would
 of far less value if the power to sue currency did not go with it. Ju
 IT A. IL