Show I n RESERVE BOARD HA HAS t CONJ CONTROL Ot- Ot I Vie Me ds power dower for Good Now Good Now No K That Morgan organ Heid Held in 1907 W WASHINGTON t.- t. May 20 The O.-The The fed fed- sene board occupying th the fl- fl uncial position held by J J. J P. P Morgan l the panic of ot 1907 will cause great rm if f it sweepingly w b- b bIse raises Ise Interests interest s in an effort to reduce living JIving tv ing ets to Senator Rob Robert rt L li i ien wren Ten en one of ot the fathers of the law I Ich created the board th the board is justified only In re- re Iring a liquidation of loans held for or pr profiteering purposes he heThe heThe Id The following question was asked of ofTen Ten en today by the United Press Prese Harding of ot the federal serve Jerve board now sitting where J. J P P. sat in 1907 that is has hag con con- con con- credit b been en transferred d from all street treet- to Wa Washington Senator Owen replied It It yas as the intention oo ot the federal serve erve act to put the the- government of States in th the position to supervisory control aver b Dv r the system of ot the United States d through the great power of f federal federal reserve notes and conling con- con ling th the extension of ot cr credit by the eve erve banks to control the credit creditt stem t n of the United States give sta- sta tt to business ss and nd establish crediton credit on ant onya ja reasonable basis with stable Interest rates Mr Morgan of course in 1907 group controlling the reserves the country centered in New York I similar milar power I IR ESSENTIALS I I think the board is Justified and andt tt t the e member banks are jus justified in requiring a liquidation of eld for for- speculative purposes or profiteering purposes through the of commodities for but they are not ju justified putting putting- up t. t tile the e rates tes of the reserve to 6 an ant r per cent thereby In- In every ba bany bay y In the United States raise the rates and constrict cred- cred T That at t means raising the rates on Cn bably fifty billions of ot public and andrate sate rate loans on bank loans on mortes mort- mort es on iron government loans I warned board their action would have this act ct ctt It has has' had the effect Gov- Gov ment Igans are now on a 6 per cent cerit 1 and Liberty bonds have gone to tolf lt the lf the federal reserve resene board ac- ac ls be policy to which I have obed ob- ob e ed d dby by raising t the e rates broadly on onse onse se who are not nol speculating great m must follow and production be with DEPOWERS POWERS The pow powers rs of the reserve board much greater than Morgan had link rink it unfortunate that men so el ely affiliated With Morgan Co uld have been given such great ers as that exercised by Benjamin ong oni as governor of the Federal erve erne bank of New York because Stably blY the point of view Is vital the advice coming from such roes is not the advice which would given by manufacturers a and d mer- mer who must have stability of in- in st rates and stability of markets marketa bud bud- fluid credit to carry on their busl- busl II successfully ADJUST CREDIT EW W YORK May 20 New Kew York king and financial circles were ling Ung every effort efort today t to readjust loan and and- credit situation on a aAr ar Ar r basis without a a. too violent die die- ance of the financial structure le atlon of loans ordered by federal reserve board was Ras in TJust Tf Just how sweeping It will be no will say bankers trying to pro- pro customers customers' credit It Is re red reed reed re- re ed d as ae certain that the merchants large luxury stocks on bank bankIt It have been ordered to reduce bank obligations far food has been little affected teete 78 vas as understood however today some rome of the banks have been car car- paper for tor vast out quantities of food old storage e and that they have din part of these loans It was this course would compel holders of r the stored food to realize on it with the result that It must be marketed and food prices will de de- de- de cline |