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.