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.
Public-domain text, read in full here on John Shaqi.
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