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Jack's w Al BR LEITER TO MEMBERS Of F[DERAL RESERVE SYSTEM p ft By John F. Bruton, Director for ai North Carolina, and David R. Coker, pl Director for South Carolina. September 22, 1920. g Almost every (lay one sees in news- P paper or periodical attacks on or criti- P cisms of the Federal Reserve System or its administrators. Some of these 0 sttacks are, unfortunately, from men o-l reputation and standing, who ought ' tr know better. The peole as a whole, howev'er, regard the Federal b Roserve System as valuable and, in C fact, indispensable. But the attacks t -upon its management andl the misrep- t representations as to its scopie and i p~-.vers will, if allowed to go on inde finitely, without being met vigorously ~ and~ in full, eventually create a p~ublic pa judlice which may be reflected into a the Congress and cause legislation c wvhich will wveaken or destroy the Sys- b ten. The member banks, sonme of s' which but for its powerful aid wvould ll ]or.g snice have ceased to function, f lduew that preservation of the System o is vital to business andl credlit and con-a tb':ued banking growth, a There is a widespread impression in I the cotton and tob~acco regions that th ' Federal Reserve Bank can and CYPRESS DOORS ~ BLINDS MOULDINGS iAND ! MILL WORK Friend The 7th. e have a few so have a fe-v Visit our Fa AD H A kould furnish unlimited credit for the II Lrrying- of these crops for indefinite, ~ i4i riods, or until these markets can bel ried up, by means of this financial , until the ideal pricfe which the t anters have in mind may be realized. However desirable it may be to the rowers to withhold these and other roducts from the market for the pur sie of forcing an advance in price o vit is desirable for these crops to octfrhe market fothn puiiury) ie limitations of the Federal Reserve .ct, the dluty of the Federal Reserve inks to dlistribute their funds equita ly, and the presenlt congested finani ial situation make it impossible for ie System to extend unlimited aid for wese or any other similar purposes, nd no banking system can be dlevisedl rhich could safely assume such an ndertaking. There seems to be in many quarters total lack of knowledge and appre iation of what the Federal Reserve anks are now doing to hellp the pre ent situation, andl the member banks henmselves may not have complete in ormation. It is a fact that North and Suth Carolina, the princip~al cotton nd( tobacco sections of this District, re' now borrowing far more than their ro rata share of the funds of the Fed ral Reserve-Bank of Richmond. There .re 97 member banks in North Caro mn, of which number 72 are borrowv ng from the F'ederal Reserve Bank. 'he amount borrowed from the Sys em by the 72 North Carolina banks s 221 per~ cent of the amount to vhich they are entitledt undler an 'quitable dlistribution of the funds of ~he Reserve Bank, and 179 per cent of he amount to which the whole State s enItitledl. In South Carolina there ire 98 member banks, 88 of which are borrowinig 285 per' cenit of the amount to which they would he entitledl under a fair distribution, andl 262 per cent of' the a mount to which the whole State is entitl~ed. To enable the Federal Reserve Hank of Richmond to make these heavy loans to North andl South C'arolina, the quotas of other sections of the [District which are, at present, not borrowing heavily have been uised; andl, in add ition, large loans have been secured by the Richmond Bank from other districts. The pre sent generial financial situation will permiit of such borrowings being heavily increased or indefinitely ex tendled, and many of the banks in the cotton and tob~acco sections must real ' r ' i j '4"' Bradham Duroc One of Our Pr( Sows that wil r nice spring .rm and see Champior A M D Mannini :he Federal Reserve Bank have al 'eady been reached. , For the Reserve banks to maintain :heir position as actual banks of re werve, and in order that they may ake care of and tide over banks whi -h, >ecause of unusual and sudden de velopments, may need qdick relief, the Federal Reserve banks must at all times maintain a reserve of lending power. Little is known by the mem ber banks themselves of certain deli ate situations which have developed from time to time in certain parts of th Ditr)Iet, whieh situations would have caused local panics, accompanied by distress andl financial failures, if the Federal Reserve Bank of Rich mond had not had the ability, the judgment and the dliscretion to handle them promptly andl judiciously. Every member bank understands that the Reserve banks stand ready at all times to aidl andl support, through the member banks, every legitimate industry in the District, including cot ton and tobacco, as far as the lawv andl a prudlent management of the Reserve banks will allow, and as far as the member banks have a right to call upon them. The State banks "hich have refused to join the Systen, have not the right to its support, andI the customers of such State banks have no) right to complain. Many, however, do0 not unditerstandl the purlposes and I limitations of the System, nor do they realizte the tremendous aid - nich the System is now furnishing. We feel that the member banks themselves should all make it tnreir business to see that the people of this District get a pro'~per conception of these matters, andl that the misch ievous and mislead ing propaganda against the Reserve System is properly and effectively combatted. The member banks them selves are the owners of the Reserve Bank and can best do this. They owe it protection, support andl encou ragement, such as stock-holdiers al ways owe to their corporations, andI espec tiallv do they owve it when they know they have been fairly and 1liber' ally trieated. Would it not he wise andl sal uta ry for the banks to go to the trouble to explla in that. present stressful fina ncial condlitionis are large Iy dute to the ex travagance(4 andl lack of busi ness foresight of ou r people ? Manyv sec tions had last fall enough moneyC in hand to operat e the farms and buisinesses for twelve months, hut wasted a large part of it. and then wen to the banks for abinormal adt vances on the assumption that high picev(s wou!ld he perim a nen . Th e ag r'icul tour'a and1( manufacturing sections of North Carolina and South Carolinma coulId hav bit'Iecom e finnanc iaily i nde Ipendent duin jg the piast threeet yearis if h'ir people h ad shiown sound business judgmi'nt and had held on to a fair proportioni of theiri riofits, and the hanks should lose n0 opp~ortun ity to ('all a tten tion t~o th is fact, ini order that ourii peop1le may pr'ohit fi'om the bitter' experience through wvhicl we are passing, anti mtist pass because of it. Farm :01I ducing Sows i farrow in 0< Boars for Sali i and World Champic UROC 15, S. C. SOUR, STOMACH INDIGESTION' thedford's Black-Draught Highly Recommended by a Tennessee a Grocer for Troubles Re sulting from Torpid Liver.I t East Nashville, Tenn.- The efflo. loncy of Thedford's Black-Draught, the ' genuine, herb, liver medicine, is ~ vouched for by Mr. W. N. Parsons, a t grocer of this city. "It is without doubt the best liver medicine, and 1r don't believe I could get along without I it. I take it for sour stomach, head ache, bad liver, indiger .an, and all other troubles that are the result o1 a. a torpid liver.t "I have known and used it for years,9 and can and do highly recommend it to every one. I won't go to bed with-. out it in the house. It will do all ii claims to do. I can't say enough fol Many other men and women through. out the country have found Bl ack. Draught just as Mr Parsons describem --valuable in regulating the liver ta Its normal functions, and in cleansingi the bowels of impurities.I Thedford's Black-Draught liver medi' cine is the original and only genuine. Accept no imitatlins or substitutes. Always ask for Thedford's, ag ing two or three times ats mutch as it is e'ntitledl to form the Reserve Bank should not (as sonme have dlone) mere ly say to would be baorrower's wh'o cana not~ heiLC~ ac omodated that thle Reser ve' Bankl will noct re'discounat the p~aper. Fa irness antd the publitic in terest de maaand that, in suchi eases the batnk ex-| pl ain that, it has al readly secutred| from the Reserve Banik andl loaned toj its customoers more than it is entitled; to rceaive fr~oma the Reser-vce Bank, and; that il cannot atnd shoutld tnt he ex poected toa horrowvt undly. 'The omecers of the Federal Re'serve; lflnk of Richmondl atnd of the Federal' Reserve' Board hiave. repeatedly siaid that the resoturces of the Systen woutld lbe at the dispiosatl of miember banks in ('very reasonable way for1 (crop~-movini# purtposes. That means Itht baks whaich hiave. not already seriouslhy overborrowved will he grant ed loans when ftands tare available, for thae piurpose of eatrrying properly storedl agricultural comlimod ities for re-asonablle periods. However, the law does not permit Reserve banks to disi conuna paper mntn t-n cnary inveutmnnts. * -. -.-- - U &" 0 Mg * CaW MX19 Fancy Orion Ch :tober for Sa] k n Durocs. FAR a purely speculative character, hether in commodities or other kings. It is our belief that banks hich nre not already over-extended mi, through the Federal Reserve Bank ftord great relief to the agricultural tWation, and ameliorate, if not pre ent, congestion and depression in the arkets for southern agricultural >modities. The people must not be lowed to think, however, that the ituation can be -handled without a easonable amount of liquidation, nor must they be permitted to believe that ie resources of the Reserve Bank are mitless andl available for unlimited eriods for the purpose of withholding heir products from the market. We most earnestly urge that every lember bank of the Reserve System ppreciate the dluty and assume the esponsibility which rests upon it in be present situation, use every op ortunity of combatting the present iischievous and possibly dlangerous ,ropaganda against the Reserve Sys om, and see that the people are cor cctly informed as to the purpose and imitations of the System and of the arnest dlesire of the officers and direc ors of the Federal Reserve Bank of tichmondl to rendler every service in he present situation which can bc iroperly extended by our Reserve tank. Finally, it is not true that the Re erve Banks have contracted theii oans to industry and agriculture; the3 aye increasedl such loans heavily. Il a not true, as stated by many critics hat the .banks of the country, goner illy undler the influence of the Federa leserve Board or the Federal Reserv< sinks, have contracted such loans r'hey have increased these loans enor nously wvithin the last nine months. Loans for speculation or for profi ,eering, or for the less essential rur >oses, or loans of a permanent invest nent character, may and have b~eel -alled, and people who were borrowinj o0 much for any reason may havy >een called, but this credit was loaned o others andl the aggregate amount o ill hank loans to indlustry hars increas adl enormously dluring the curren vear, andl increased as could not hay ween done-except for the Federal Re ierve banks and the lFederal Reserv System. We are profoundly convinced tha the welfare of your institution an that of your clients is dlependlent upo) your candid and( honest efforts t counteract the misrepresentations an misconceptions which are ennstantl in evidence. You can do little to cor vince the dlemagogue, the speculator: and others whose interests are nc favorgd by stability and conservatisti hut the great body of our busineF peole, many of whom are uniforme or misinformed, are due especial cor sidleration, and it'is in their behal that we appeial to you. With assurances of our interest your problems andl our dlesire to be< service, JIOHN F. BRUTON, DAVmI n. CoKEn ief Le. D-a o -'rml--o ~--. r m', D~on 2:u a p.&r~s,;.w. ech becom c:a~ C:e discses~. Avo ed painh1 C3~.'- tuee by takir.g MANNING, S. C Attorneys-atLaw -MANNING, S. C. Rt. 0. Purdy. S. Oliver O'Bryan PURDY & O'BRYAN Attorneys and Counselors at Law. MANNING. S.C. FRED LESESNE, Attorney at Law MA NNING, S. C. Loans Negotiated on Real Estate S MONEY 'TO LOAN On RelEstate-Smiall and Large 1 Loans. Long Terms. J. W. WIDEMAN MANNING. S. C. t, Hf. C. CURTIS, ri Attorney-at-.Law MANNING, S. C. n WEIANBERG & STUKES J. A. Weinberg Taylor HI. Stukes Attorneys-at-Law MANNING, . C .