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

~stItution getting that much.
Congress Held Probe
OF course, Congress could not fai
to investigate the Federal Reserv
system in view Of all criticisms, an,
a very thorough investigation wa.
made, and the facts regarding thi.
particular loan showed that out Of
the $l3l 900 900 loaned this particu
bar bank, SIP, 0O0, 900 Of the amount
was loaned against government wal
bonds bought by the bank and patri-
o~tlcaIjy he'd by it, the bank not hav-
ing thrown them on the market. as
SO many institutions and individuals
did, whsch caused oul government
bonds to go below par, but CARRYING
them and paying the Federal Re-
serve system a higher rate of inter
est than the bonds paid.
The United States government
therefore, got the benefit of $112,-
100000 of that loan--the whole
American people, in fact. or this
large loa&. only ~$l9,Ooo,ooo was Dor
r67&'d 'pst III banks portfolio.
in the s,uth, and 'fssI Ell M ssb's
parts OF the country, and if thiA INK
had not given such generous sup
port ID its country clientele,
1t is doubtful if it would have
had 10 call on the Federal Re-
serve system for airy accommoda.
tons whatsoever, The bulk of this
loan was really used in support of
agriculture and deserves to be SO
classed. though made in New York
During 1920 and the early part Of
i'zl, the Federal Reserve Bank of
our district, with headquarters in
Atlanta, and branches in New Or
leans, ami various other Southern
cities, exhausted all it's funds making
loans IN the district, and the Federal
Reserve Board, purely for the sake Of
the general welfare, transferred 81
100000 to this district from other
districts, principally from the Fed
eral Reserve Bank in Cleveland Ohio.
ms was also true of all the Southern
rederal Reserve Banks. The require
ments Of this district have been fully
met, and there is no doubt but that
Ihe full needs Of this district will be
saken care of, ever at the expense Of
ne ron-agricultural centers, as was
lone during the season OF l92O-1921.
Tells Experience
was a member of the original
loard of directors of the Reserve
sank OF this district, located in At
anita, and served five years contin-
'ously, when | gave up the work.
,ut was then appointed a member of
board of the New Orleans branch
Vhere ! have served continuously
yer Stree. During these seven wears
nave never seen an agricultural
ran declined. The Federal Reserve
'ank, by no means, however, honors
applications, it not requiring even
wise MAJ to know that such a pol
y would be unsound. But | don't
eiieve the Federal Reserve Bank of
MS district has rejected one worthy,
eserving agricultural laon; and
elleve this is true of every other
ederal Reserve district in the South
nd West.
IT is a life work to master a knowl- ;
ige OF finance, and there are not :
any who are competent to under !
and these questions.
Highly trained, experienced patri- i,
S are the only type fitted for these
'sponslbllities, and this is the char i.
ter of the Federal Reserve Board, .
ID If 1t is ever otherwise we NAV :
the currency of this nation. !,
its exchange to decline in value, {
happened in Europe when, in their =
fhculties, they ceased to pursue '
und financial policies. The contrast :
cause all Americans to praise :
G Federal Reserve Board. {.
And the people know this. =
They know that very few of the :.
are competent to express =
und views on financial questions, y
d that is why they are paving so !.
tie attention to them. =
II the people believed all that isl
ID about the Federal Reserve sys-
n, the devil would be to pay. The 8;
oplc have more sense than the :,
rdful of discontented men, who. y
cause of their losses, political pre-
ices, cupidity or sourness for
Ter causes, fail to realize that the
ople are pretty evel-headed after 81
, and the sooner they learn this nj
the better for them and the pl
mtry at large. W
Agriculture il Basis
What mar who understands bust
IS can fail to know that a very
&c percentage of all the loans of
Federal Reserve system are TO
'essarily p~redicated, directly or in ca
tI~t1v an urir,1turn gA o W