Show CREDIT ECONOMY URGED BY BORAH Governmental Intervention in ill Corporate Financing Is Recommended Washington Jan 22 Effect of oC credit cred crell- rise of or it expansion on tho the general prices and tho the part the American people peo peo- pIe can pIa play In iii counteracting Inflation Anh r I b by wartime economic economic- M-IW M sized tOlla today b by the federal reserve reser board boar in Its Us annual report to Con Congress res Explaining that ev even n though credit expansion eXI Is not entirely responsible for 01 increase in price pricell prices the board sa says s a aIt It it regards It as ns one o of its most Important Important tant taut duties to prevent as RS far as practicable l expansion o of banking credit from rom running an LU uncontrolled course Goods floods and credit sn says the tho report must be saved aved to tho utmost of or our ability In order to check tho the upward movement mo of or prices and in or order er to free treo for the thc use ulle of oC th the government o the goods and savings ins required for fOl the wino winning win win- ning o of tho war var rio Tho present condition of or a greatly reath expanded currency will bo ho Improved tho tito hoard board believes belle as the public performs performs performs per per- forms its duty of absorbing the government gov gor- loans out of or savings 8 Before DeCore third thiril Liberty loan Joan tho the report dds adds federal reserve banks must reduce their Investments to strengthen re reserves reserves re- re serves and a avoid old further urther exp expansion that lint has ban accompanied the last two Liberty Lib Lib- erty loan loans The Tue hoard board does 1005 not say way specifically how ho hoit it proposes to do this The chief problem o 0 of corporate I financing has been beer removed b by Iy government govern govern- o I ment operation u of railroads says sas the he boards board's report but the tho situation Is still serious sellous The Tho board therefore respectfully gu suggests carl early consideration b by Congress Con Con- gross gress of oC the lie problem of te financing in the belief hollet that no io satisfactory satis satis- factory solution will be found that lint docs 1001 s not involve e some degree of oC govern governmental mental intervention The board Is la o of C the opinion that some sonic plan for government govern Oln ment merit intervention or aid can be worl worked ed 1 out which would meet tho the requirements 3 of the lie situation satisfactorily Earnings of or the twelve tn federal re reserve reserve re- re serve e banks In 1917 7 were reported a as ns 3 I gross ross and net with declared dividends of about aboni I The Tho boards board's s 's expenses have ha been bce ii a n I little less than and the lie cost of ol administering the tue gold settlement fund has hns been nol noly or 1 I l- l 3 1 cents per 1000 |