The Idaho recorder., 1922-02-10

economic problems. When 4
comes we can sell our sarsI'
ucts, and then their prica 8;
creased. The American d.
yet see that the decrease n
our products was cauesl h
feat of the treaty here with
sequent destruction of our
abroad"
Senator Glass Explains Fed.
serve Operations.
Senator Carter Glass AZ
rendered a distinct service "a
ty and to the country by 4
many widespread errors 4,
the Federal Reserve Board
eral Reserve Banks and IN
Reserve Banking system IN
on the floor of the Senate, "a,
for it's clarity and directnes,
gested statistical facts.
Senator Glass is pre-emins
ted for the task of CORE
controverting the preyalenf
concerning our great banking
rency system. AS chairrnsa
finance committee of the N
presented that measure \
charge of its passage. As
of the treasury under Preids
son he administrated it in
abve criticism. He is now a
ed authority here and throup
world on finance and bankins|
the principal author of the
and most scientific banking
rency system in the world.
Without enumerating IN
misrepresentation and M
tions concerning the Federal
the following paragraphs fro
tor Glass's speech, not only
the main facts with referepo|
operation Of this system bu
and controvert the misstatemd
have been made:
The twelve regional Fed
serve Banka are not owned
government of the United St
by their stockholding membe
The government of the
States never contributed
their capital; the Taxpayers
assessed a penny for their
nance-on the contrary thes
pay the government $60,0Oo
nually in franchise fees.
They do not loan, cannot Id
lar to any individual, concen
poration. 1t cannot compel 4
bank to discount or to refus]
count. 1t cannot establish
with any individual bank at
reserve bank; it cannot issue
to any regional bank except
plication of the regional bank
not withdraw or cancel Eel
serve bank notes with a view
tracing the currency or
other purpose.
Instead of debating bank d
diminishing Federal Reserve
during the period of falliri
the Federal Reserve banks n
plying largely increased creI
tiles and issuing a constants
ing volume of Federal Resen
(The exact statistics pres
Senator Glass showed an exp|
credits from January /, 1924
uary 1, 1921, of $472, ,0S8, ,SOI
currency expansion of $50
for the same period.)
Falling prices caused the
of credits and currency, sud
have witnessed since Janua1
year, AMI not deflation of crI WEI e
fall in prices.
The Federal Reserve bank 4
IL New York is to cost ent
built) $13,000,000 not $26,OO
is to be built out of sum
authorized by law, which i
the Federal Reserve bank,
owned by the stockholding
New York. The money doel 81
long to the people in the /
1t Is common property.
building will house 5000 ps
900 as has been freouently
The salaries paid officia 32 3.
bank are not above, but be
paid by other banking in]
The Governor of the New
eral Reserve bank, who i s
salary of $4,000, received a a
$4,000 before he took the pe
Senator Glass's speech w.
nature of a revelation to nd
the magnitude of the Feders
banks and the volume oi
transacted. The New Yorf2
Reserve bank houses SIS, ,O00i
gold and securities; it mOS
day S1S0,000,000 in cash aDl
100000 in securities; its disc
advances total over $500 r.
per annum.
Altogether, Senator Glas:
was a complete and conul
Tense of the Federal Reserv
system and its operations b.
knows it in detail-a systen
the greatest of the MANI
ments of the Wilson admH 3
tested and proved in the grs
of all time.