The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1923-02-09

the reserve system a moving picture
theatre, a gymnasium, a restaurant
and clubrOoms; all of sumptuous eIe-
gance. The annual rental value of
the space so devoted to recreation is
about 100000.
The new reserve bank building in
Chicago is to cost s1O,465, 684; that in
Cleveland $8,41O,257 and that in BOs-
ton $5,s56,568.
In these four cities alone the sys-
tenn plans to spend nearly s5O,OOO,OOO|
for banking quarters.
This is the same system that
cramped down on farm loans while
it opened the gates for commercial
and speculative paper; the same at
whose door is laid the heavy charge
of debating credits until in the agri-
cultural regions the court dockets
were swamped with the cases of
farmers driven into bankruptcy by the
declining prices at the farm.
The amount that these four banks
plan to spend on their buildings is
about five times as much as the av-
ferage annual expenditures of the
J United States government for all pub
lie buildings Of all kinds for all the
! country.
} In addition, according to allegations
made in the senate, the Chicago re-
serve bank, with the approval of the
board, charged off in its accounts more
than 100000 to depreciation in
property value, on its new building
which had not yet been completed.
The explanation for these astound-
ing performances, as given in the SEN
ate, was what the reserve banks had
accumulated huge reserves that under
the law were subject to government
} taxes amounting to 80 per cent. Rath-
er than let the government collect the
5 taxes the reserve put these sums into
colossal buildings and the government
was thereby the loser.
a Besides this, as these charges in
J. the senate related, the New York bank
had made dazzling increases in the
I salaries of its officers and employees.
One was raised from 81, 1920 a year to
e $4,000; one from $500 to $4,000;
4 one from $4,000 to $4,000; one from
$4,000 to S9O,OOO One officer was
: for time in receipt of the salary of
3 SIS, 1000, but when the senate's atten-
f ton was called to the fact the salary
2 was reduced.
For the year 1921 the salaries paid
in the New York bank exceeded the
total salaries paid by the United
States to the president and vice-presi-
dent, cabinet, supreme court, both
houses of congress, all federal circuit
judges, the general Of the army and
the admiral of the navy and some 9TH
er public officers thrown in. On the
payroll appeared, according to these
charges, an editor of a New York
, newspaper that was often printing
editorials commencing the reserve
board and its work.
It appeared that the New York bank
had in its employ more than $500
persons, while another bank in the
same city, that seemed to be doing a
largee business, was able to get along
with only 200 employees Of all kinds.
1t was charged that here again the
: result if not the purpose Of this reck-
; less expenditure Of money was to de.
prive the United States treasury of
taxes to which it was rightly entitled.
q In the face of these revelations,
4 which in former times would have
! been first page matter for every news
: paper, the press of the country chief
ly maintained silence, although some
L newspapers attacked the men that
E were making the revelations. If this
was not legitimate news there never
t was any in the senate. Whether the
: charges were true or false, they were
: made in open senate by responsible
2 men, apparently supported with vol
umes of testimony.
If true, they revealed the great
federal reserve system, Of which so
much had been hoped, as a gigantic
: scoop to gather quickly great heaps
/ of money into the control of a few
and make great profits for handful
: of bankers.
1 If the people will discover the rea-
t son for the lop-sided and jug-handled
, journalism revealed in the suppress
sion of this story they will be making
5 start toward a return to the con-
ttrol Of their own affairs.
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