The Federal Reserve Monster

by Unknown

At this time the Federal Reserve Bank of Atlanta was lending to all its member banks in the States of Georgia, Florida, Alabama and parts of Louisiana, Tennessee and Mississippi a total of $88,000,000 and had "bought paper" to a total of $16,000,000—and that included some $10,000,000 which it was loaning to other Federal Reserve Banks, principally in the North for speculative loans. Mark that down—$94,000,000 of loans covering that enormous area of production.

At this same time the Federal Reserve Bank of St. Louis was lending to all its member banks covering the greater part of Missouri, Arkansas and parts of Illinois, Indiana, Kentucky and Mississippi $80,000,000 and had $31,000,000 of bought paper—including $20,000,000 taken from other Federal Reserve Banks. Mark that down—$91,000,000 of loans in that area of production.

At this same time the Federal Reserve Bank of Kansas City was lending all its member banks in Kansas, Nebraska, parts of Missouri, Oklahoma, Wyoming and Colorado $88,000,000 and had $17,000,000 of bought paper. Mark that down—$105,000,000 of loans in that fertile area of production.

At this same time the Federal Reserve Bank of Dallas was lending to all its member banks in all of Texas, parts of Oklahoma, Louisiana, New Mexico and Arizona $57,000,000 and had $6,000,000 of bought paper. Mark that down—$63,000,000 of loans in that vast area.

At this very time, in January, 1920, one huge speculative bank in New York City was borrowing of the New York Federal Reserve Bank $130,000,000! This one New York Bank—catering to speculators, to money masters, to "corner" builders and to "high financiers," not even remotely connected with the real production of real wealth—was borrowing more money from the New York Federal Reserve Bank than the Federal Reserve Bank of Atlanta or of St. Louis or of Kansas City or of Dallas was lending to their member banks in their huge areas of real production of real wealth! And not only that, but at that very time the Federal Reserve Bank of New York was borrowing of other Federal Reserve Banks $100,000,000 to hurl into the New York maelstrom of speculation!

And not only that, but at that very time all the money which all the twelve Federal Reserve Banks in the U.S.A. were lending on agricultural and live stock paper to the 9,000 member banks in the 48 states of the U.S.A. amounted to the pitiful and piffling sum of but $51,068,000—not one-half of the amount borrowed by one speculative bank in New York from the New York Federal Reserve Bank. At that time agricultural interests, particularly in the South, and live stock interests all over the land were beseeching the Federal Reserve Oligarchy for money and beseeching in vain.

Take another look at the official figures for the month of November, 1920. At this time the real producers of real value—in the West and the Northwest and in the South and the Southwest—were gasping for money and credit. Bear in mind that their property, their production and their toil forms the real foundation for the vast superstructure of American wealth. Where you find a lily-fingered parasite lolling in a mahoganized eyrie of splendor and gambling with money—the tokens of production—you find a battalion of real producers in the great stretches of America toiling to produce real values. If there is to be any discrimination, if there is to be any partiality shown by the overlords of the Federal Reserve System, it ought to favor production of real wealth, and not parasitism gambling with its proceeds. When there was this drouth of credit and money where real wealth is made, how was the Federal Reserve System opening its irrigation gates of money? It shut them in production's face and opened them wide at parasitism's demands.

At this very time—in the middle of November, 1920—one speculative bank in New York borrowed $134,000,000 from the Federal Reserve Bank in New York, or $20,000,000 more than the Federal Reserve Bank of Kansas City was lending to the 1,091 member banks in the Tenth Federal Reserve District.

Another speculative bank in New York borrowed from the Federal Reserve Bank in New York $40,000,000 more than the Federal Reserve Bank in Minneapolis was lending to its 1,000 member banks in Minnesota, North Dakota, South Dakota, Montana and part of Wisconsin.