Capital journal. (Salem, Or.) 1919-1980, 1922-02-06
The Federal ReSerUe

In creating the Federal Reserve bank has the United
States created Frankensten that threatens the welfare OF
the nation?
From recent development it would seem so. Filling a
useful and necessary function in stabzng the finances OF
the country before during the it is apparent that
its operations have been perverted SINCE to the profit Of
peca interests and the derment of national and world
welfare
was never contemplated that the federal reserve system
should pile up excessive profits at the expense of the people
To these profits exorbant salary raises have been
made and costly buildings ereced-and yet the profits
exceed 100 per time of financial depression In just
one of these banks official draws salary of
$4,000 year. two $4,000, two $25000 one $4,000, one
$2OOOO two $18O0O $4,000, six $4,000 two $1O00O
and five from $500 to $4,000 In other there is
profligate waste of money.
show that funds of the system have been
extensively loaned to banks whose executive officers and
directors big borrowers that of the banks borrow
ing heavily from the bank loaned $5O0OOOO
to director in the New York Reserve bank, mostly on
speculative securities while farmers and country banks
were begging for relief and sustaining nous losses because
Of restrictions of credit by the reserve system
banks in three cities given $300000000 more loans
than all the 1878 country banks in the 48 states.
The United States supreme court in decision rendered
March 6 1921 held that the federal banks have
Systematically waged banks to force them to BEL
come members of the system, that drafts have been
accumulated and presented at time in an endeavor
wreck the bank refusing to join by heavy withdrawasand
action not what the system organized for
The present hard times and financial stringency is due
in large the action of the federal bank
in forcing liquidation after initiation by contracting the
rency-and European nanciers blame the American policy
accumuang the gold of the world in America and heap
ing up useless the real of European
decentralization If this gold working in industry it
ought be- conditions would right themselves abroad
and here too they assert.
When currency inflated prices follow. When currency
is contracted prices contract. The federal reserve after
initiating the currency and sending prices deliberately
contracted the currency and sent them smashing and then
by refusing credits, precpated the panic Before the
deaton began there than $50 per capita money
in circulation There but $50 per capta-ahd half
this tied up in bank and vaults,
The federal reserve SYSTEM which created to avert
financial depessons and panics has thus become
perverted into instrument for creating themhus taking
the place the Wall street nancers who precptated the
pancs of and 1907 for purposes of profit The reserve
bank the itself operating to furnish money
when needed and instead Of furnishing it at COST charging
100 percent usury shameessy profteerg the national
distress At the time the farmer needed money and credit
most it withdrew credit, contracted the currency and
destroyed property values
The federal system is constantly extending its
activities 1t puts out propaganda forecasts markets. inter-
with business and exercises the authority
regulate commodity prices and NEEDLES in the management
of industry It's deflaton policy has wrought ruin to agr
culture and depressed business Instead of serving the
people, it has pundered them and delivered them into the
hands of the money trust. 1t may become to
the government.