We have a Federal Reserve System which still is benefiting by the assistance of its perfector and director, Paul M. Warburg. And what is the condition in the United States? Some of the biggest industrial institutions in the country now in the hands of creditors’ committees. Farmers being sold out by the hundreds, their horses bringing about $3 each. Cotton and wool enough to clothe the nation, spoiling in the hands of the men who raised it and cannot dispose of it. Every line of business, railroading, newspaper publishing, store-keeping, manufacturing, agriculture, building, in depression. Why? For lack of money. Where is the money? This is the country that is supposed to be the financial center of the world—_where is the money?_ It is in New York. The Federal Reserve System, which Mr. Warburg desired to head up in one central bank, has just about turned out that way. _The money is in New York._ Here is the charge made to the governor of the Federal Reserve Board by a responsible public official who knows: While there is a scarcity of money for the producing sections of the West and Northwest, the South and Southwest, “we find that individual banks in New York City are borrowing from the Reserve System, in a number of cases, more than $100,000,000 each; and sometimes as much as $145,000,000 is loaned there to a single bank—_twice as much_ as some of the Reserve Banks have been lending recently to _all_ the member banks in their districts.” One bank in New York borrowed $134,000,000, _or $20,000,000 more_ than the Federal Reserve Bank of Kansas City was advancing to 1,091 member banks in that Reserve District which covers the states of Kansas, Nebraska, Colorado, Wyoming, and parts of Missouri, Oklahoma and New Mexico. At the same time, another New York bank was borrowing from the Federal Reserve Bank about $40,000,000, which was _more than the aggregate loans which the Federal Reserve Bank of Minneapolis was lending to its 1,000 member banks in the_ great states of Minnesota, North and South Dakota, Montana and part of Wisconsin. Another New York bank borrowed from the Federal Reserve Bank a sum which was _greater by $30,000,000 than the Federal Reserve Bank at Dallas was lending to all the banks in Texas, Louisiana and Oklahoma_. Still another New York bank got a loan which _equaled the total loans allowed by the Federal Reserve Bank of St. Louis to the 569 member banks_ of that very important district, which includes the whole state of Arkansas, parts of Illinois, Indiana, Kentucky, Tennessee and Mississippi, and the larger part of Missouri. Take the Fifth Federal Reserve District, served by the Federal Reserve Bank at Richmond, Virginia: one New York bank was able to borrow from the New York Reserve Bank _more_ than the Richmond Reserve Bank would lend to all its member banks in Maryland, Virginia, North and South Carolina and the larger part of West Virginia.