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Show "PASSING THE ItlTK" I'M AIRLY Probably no institution designed for the general welfare of the whole country has been ,less understood by the public or more misrepresented for political purposes, than has the Federal Reserve System. Elliot C. "McDottgal, President of the Marino Trust Co. of Buffalo, New York, in a recent address defended the Federal Reserve banks against attacks regarding discrimination in rates. He challenged anyone to cite specific spec-ific instances where rates had been charged that were not justified by risks taken or by the policy of checking check-ing speculation. Whatever rates the Federal Reserve Banks may have established were alike to all in the same district. Furthermore Mr. McDougal stated, stat-ed, that the country banks of the South and Central West charged their borrowers considerably higher rates than they in turn paid their city correspondents, or the Federal Reserve Banks; in other words, that too many of the country bankers who continually are denouncing the East as a congregation of bank pirates, pir-ates, were the chief offenders against the farmers whom they profess to love. Thus the Federal Reserve System which has discounted bank paper at six or six and one half per cent to help local banks carry the farmer, (rate is now 4 per cent in all Federal Reserve banks except in Kansas City, Minneapolis and Dallas), Dal-las), is blamed for the high interest rate which the farmer has often had to pay and in which the Federal Reserve System has had no part. The Federal Reccrve System may ho improved as time passes but it is unfair and net justified by the facts for country hankers to "pass the buck" to the , Federal Reserve System for high interest rates which local banks may establish. OPTIMISM Secretary Hoover in a recent Denver Den-ver speech aserted that unemployment unemploy-ment has decreased by 50 per cent. Also he said that tlier production of American industry is now 85 per cent of normal. :flr. Hoover is an aposllo of optimism, who gives body to his faith by filling in with facts and figures. |