CHAPTER VIII

THE PARTIALITY OF THE PILLAGE

HERE is the idea. For reasons best known to themselves Federal Reserve Oligarchs penalize production and favor parasitism. Who are really entitled to the largest loans from the huge storage or reservoir of Federal Reserve money? Why, the real producers of the real wealth, the agricultural interests in the U.S.A. Have they had it? They have not. Look at the figures--official, please remember--as of January 1, 1920, when the Federal Reserve "Drastic Deflation" Drama was beginning to be staged.

At this time the Federal Reserve Bank of Atlanta was lending to all its member banks in the States of Georgia, Florida, Alabama and parts of Louisiana, Tennessee and Mississippi a total of $88,000,000 and had "bought paper" to a total of $16,000,000--and that included some $10,000,000 which it was loaning to other Federal Reserve Banks, principally in the North for speculative loans. Mark that down--$94,000,000 of loans covering that enormous area of production.

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.

Take another look at the official figures for the month of November, 1920. At this time the real producers of real value--in the West and the Northwest and in the South and the Southwest--were gasping for money and credit. Bear in mind that their property, their production and their toil forms the real foundation for the vast superstructure of American wealth. Where you find a lily-fingered parasite lolling in a mahoganized eyrie of splendor and gambling with money--the tokens of production--you find a battalion of real producers in the great stretches of America toiling to produce real values. If there is to be any discrimination, if there is to be any partiality shown by the overlords of the Federal Reserve System, it ought to favor production of real wealth, and not parasitism gambling with its proceeds. When there was this drouth of credit and money where real wealth is made, how was the Federal Reserve System opening its irrigation gates of money? It shut them in production's face and opened them wide at parasitism's demands.

At this very time--in the middle of November, 1920--one speculative bank in New York borrowed $134,000,000 from the Federal Reserve Bank in New York, or $20,000,000 more than the Federal Reserve Bank of Kansas City was lending to the 1,091 member banks in the Tenth Federal Reserve District.

Another speculative bank in New York borrowed from the Federal Reserve Bank in New York $40,000,000 more than the Federal Reserve Bank in Minneapolis was lending to its 1,000 member banks in Minnesota, North Dakota, South Dakota, Montana and part of Wisconsin.

Another speculative bank in New York borrowed from the New York Federal Reserve Bank $30,000,000 more than the Federal Reserve Bank of Dallas was lending all its member banks in all its huge territory.

Another speculative bank in New York borrowed from the New York Federal Reserve Bank $20,000,000 more than the Federal Reserve Bank of Richmond was lending to all its member banks in the Fifth Federal Reserve District.

Massing these gigantic figures in another form, the fact is that at the time four speculative banks in New York were borrowing from the New York Federal Reserve Bank an average of $118,000,000 apiece--or practically as much money as the Federal Reserve Banks of St. Louis, Kansas City, Minneapolis, Dallas and Richmond were lending more than 4,000 member banks in 21 states comprising more than half the entire area of the United States!

If this isn't coddling parasitism and penalizing production, you find a name for it!

Millions by the hundreds for parasitical speculation, for the pounding down of prices in "short" markets in a "bear" campaign waged against real values and millions by the paltry tens only for the real producers of real wealth! If these actual figures don't batter down the "prop" of Federal Reserve propaganda about "furthering agricultural interests," nothing will. "Furthering agricultural interests" with a bludgeon! "Equalizing credits" with a meter of equality so stretched as to enwrap parasitism! If these actual figures don't convict Federal Reserve Oligarchy of the height of Pecksniffian hypocrisy it's convict-proof! Look over--and don't overlook--these figures. You can't consider them in cold blood without irresistibly concluding that Federal Reserve Oligarchy pampers parasitism, penalizes production and bestrews its gigantic resources by favoritism instead of by merit. It is obsessed by a squandermaniac prodigality for speculation and by a niggardly parsimony for real production of real wealth. It exalts the tokens of wealth and the jugglers of it far, far above its real producers. It reaches out almost limitless largess to the pinnacles of parasitism while practically starving the real makers of real wealth on whose shoulders parasitism gaily rides. It shovels out hundreds of millions for speculation and serves with an eye-dropper tens of millions for production. It's unfair, unjust, inequitable and Janus-faced. It mumbles and mutters and chitters and chatters and propagandizes about "equalizing credits" and "emancipating credit," while in truth and in fact it is grossly discriminating in its credits and instead of "emancipating" credit enchains it to the golden chariot of speculative splendors! That's what it really does and that's the true tale of its Partiality of Pillage.