The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-10-14
HOUSTON, FACING
HOSTILE FARMERS,
MAINTAINS STAND
ReiterateS at Conference With
Agricultural Interests That
U. S. Will Not Help Keep
u)D Prices,

WASHINGTON, Oct. 14.-Secre-
tary Houston reiterated today to rep
resentatives of agricultural interests
in conference here that the treasury
would not be party to the with
holding of any commodity from the
market to maintain artificially high
prices.
Spokesman for the delegation were
frank in their criticism of Mr.. Hous
tons recent statement that prices HAD
begun to recede, but the secretary
told them as frankly that his state
ment properly represented condi-
tions.
The delegation sought mainly to
have the treasury revive the war fl
nance corporation, arguing that
through it they would be able to OBJ
tain funds to finance exports which
they claimed were falling off, Gre
ating a stagnant market.
Secretary Houston asked if any
member of the delegation would lend
directly on German bonds or other
securities, explaining that previous
appeals Of cotton producers were that
the government should make avail
able to them the German market. A
heated colloquy between the secre-
Carolina followed.
Germany must live" the senator
said. You know she must live.
see no reason why her bond should
not be accepted. / would reply to
your direct question: Yes, a thousand
times yes, for, as l said before Ger
many must live or the world pays
the price"
Senator Smith told the secretary
he was the one and only one" in
the government who could direct re-
sumption of governmental activities
which would relieve the situation
complained of by the agricultural in
| terests.
\ Secretary Houston explained that
the treasury was constantly in the
market to borrow money for the pay
| ment Of current bills. He told them
that the war finance corporation
could obtain money only from the
treasury and that if it were to lend,
it meant only that the treasury's
| borrowings would have to be in
| creased and the government would
have to call on the people continu-
ously for more money.
Senator Smith declared that if such
| were necessary. it was the proper
course to pursue. He said he had
no objection to another popular loan
IL the exigency required.
Secretary Houston said the deCi-
sion of the treasury not to revive the
war finance corporation had been APP
proved by the president and "nu-
| merouS prominent senator's and rep
| resentatives." All were familiar with
the problems with which the cor
Ara tIR,
vived, the secretary said, adding that
the consensus Of opinion was that the
benefits derived from restoration of
the corporation would not counter
balance the evil effects it would have
on general money market and credit
conditions.
The agricultural representatives
today expected to be granted
a hearing before the full member
ship of the federal reserve board and
its agents, assembled for the boards
regular fall policy conference. Dele
gates to the agricultural convention
hoped to be able to present their ar
guments before the board formulates
it's policy insofar as it affects credits
to farmers.
Governor Harding. of the reserve
board, yesterday told a committee
which appealed to him for relief that
the board was preparing statement
Of policy covering all phases of the
credit situation. The statement, he
said, probably would be made public
Saturday. Governor Harding denied
the board had issued instructions
which would result in Curtailng
farmers credit
For three hours a committee from
the reserve board heard delegation
from the agricultural conference de-
scribe conditions which they said
threatened the life of the nation
through a reduction of food produc-
ton Inability TO obtain financial
assistance is working the greatest
hardship on farmers, the boards
committee was informed.
Gov. Harding yesterday told the
delegation that German interests had
informed him they were in the mar
ket for two million bales Of Ameri-