Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-01-25

study Of its principles and vast bene-
fits. Mr.. Hichborn has a fund of in
formation on the subject which he i'm
course.
Mr.. Hichborn in opening his address
stated that in talking to Governor
Harding of the Federal Reserve Board
the latter had told him that he found
people most unfamiliar with the Fed
eral Reserve Board and with its work.
ings, but most eager to learn. Hence
II may not be aniiss to tell you some
thing about the Federal Reserve sys-
tenn" said Mr.. Hichborn.
After giving complete history Of
legislative activity leading up to The
adoption of the Federal Reserve sys-
tenn bill and to its adoption in Decem-
Der, 1913. Mr.. Hichborn stated that the
fundamental change brought about by
the new bill and aimed at a more elias
tic currency. was the change from a
bond secured currency to AN asset Sc
cured currency. This is the important
part Of the system; the rest is mere
machinery.
Under the present bill there are "
regional banks with one supervisory
board in Washington, Sd. c., whose
members comprise the secretary of the
treasury. the comptroller of currency.
and five qualified members. named by
the president of the United States, APP
pointed for a 10-year term at salary
of $4,000 a year.
Federal Reserve banks are located in
Boston, New York. Philadelphia,
Richmond, Va, Atlanta, Ca. Dallas.
Tex, st. Louis, Mo-, Cleveland, Ohio.
Chicago. H., Minneapolis. Mimi. San
Francisco, Cal. and Kansas City. Get
1t out Of your minds that these are
government owned banks" said the
speaker. "They are not"
National banks are compelled to be-
come members of the Federal Reserve
System; State banks may come in If
they please.
The Speaker went at length into the
earnings and profits CT the bank in
this system and showed that the IL
regional banks had last year $685.
0o0,0O0,oo in surplus and paid to the
government over s69,o00,000 as a
franchise tax.
Mr.. Hichborn showed most conclu-
sively that through this perfected
system of re- discount this country is
assured at all times of the greatest
elasticity in currency which is as
Mr.. Hichborn said, the best guaran-
| tee against panics. There has been
| no indication Of a panic since the
J Federal Act and there couldn't be
one"
Perhaps one of the most interest
! ing features of the talk were the fig
ures relating to the New York FEEDER
al Reserve bank al given in detail by
the speaker. In 1920, the New York
Federal Reserve bank collected ST.
100000 checks aggresating $57,129,-
100000; handled and collected Gov
eminent securities, coupons, etc, $780,
100000 items representing over $780,
900, oOO0 600. The bank handled $685.
! 100000 separate bills. counted and
rolled SAB 100000 of coins and shipped
| CT 900 consignmcnts Of coins. Fig
; ures," said the speaker. (which are
almost beyond our imagination" In
this bank there are 40 officers and
! 5000 employees.
Mr.. Hichborn spoke at length of
the recent attacks upon the Federal
Reserve system which have been
made by the Agrarian bloc in the
Senate. These attacks he interpret
ed as showing hostility to Mr.. Hard
ing, the President of the Federal Re-
serve Board. The Agrarian bloc, he
felt. had unjustly blamed the Fed
eral Reserve system for the depre-
citation in the values Of farm proper
tics of all kinds, and for the difficult
ty which agriculturists are meeting in
obtaining large loans. These loans
the Federal Reserve Board vas not
empowered to make, but the bloc"
felt that with one Of their number a
member Of the Board these difficulties
would be removed. It is history that
this last attack by the bloc" has
failed.
Il have only touched the high spots
this is all could do in this short
time. The Federal Reserve system is
a great system and we are proud to
be members"
Mr. Hichborn's remarks were fol-