Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-10-13
Farmer Group
to Protest Policy
Currency Dehation

Washington, Oct. 12-Steps to ap-
peal directly to President Wilson
against the currency defiation policy
Of the treasury department on the
ground that farmers generally faced
heavy losses unless the downward
trend Of prices Of farm products was
checked, were taken today by a
special meeting of agricultural inter-
ests called by the American Cotton
Association.
Senators Overman of North Caro-
lima and Harris of Georgia, who are
connected with the movement, called
at the White House to prefer a re-
quest for the conference with Mr..
Wilson and his cabinet and were
told by Secretary ,TumuIty that they
would receive an answer from the
President tomorrow morning. The
senators emphasized the necessity of
prompt action as the regular fall
conference of the Federal Reserve
Board of Governors of the various
Reserve banks also is scheduled for
tomorrow. The question of interest
rates will be considered at that con-
ference and the agricultural repre-
sentatives gathered here declare
they wish to present their views on
the whole question Of crop financing
before action was taken by the Fed
eral authorities. q
I Speakers at the meeting before
adoption of the resolution proposing
to take the problem to the Presi-
dent personally, repeatedly de-
nounced the dehation policy of Sec
rotary Houston. Farmers stood to
lose billions of dollars unless the
government acted to check the fall
of prices they declared, adding that
in many cases market prices were
now below the actual cost Of grow
ing. The result would be greatly de-
creased production next year, they
said, if means to remedy the situa-
ton was not found.
A charge by former Senator Mar
ion Butler Of North Carolina that
there was Conspiracy" of officials
to force down the price of agricul-
tural products. brought a. protest
from John ]. Mcswain Of South
Carolina.
II cannot believe one of them ca
pable of conspiring to rob his fellow
man. said Mr.. McSwain. Il do be-
lieve. however, they made an error
of judgment. LetHus reason with
them and see where they have made
a mistake"
]. j. Brown. Agricultural commits
sioner of George, and Senator Ed
Smith of South Carolina, also pro-
tested against a statement by Mr..
Butler that the country was about to
face a panic as result of the de-
fiation policy.
Senator Smith said there was "a
crisis, but no panic"
A general committee composed Of
representatives of each Agricultural
organization attending was named to
draw up a statement to the public
presenting the plight of the growers
in declaration of principles to be
adopted by the convention. A res
olution calling for the pooling of low
grade cotton under selling COM
mission to handle export sales went
to special committee on cotton.
Senator Smith suggested that the
farmers find out their legal rights
under the federal reserve system and
demand them.
IF forty-cent cotton is profiteering,
if 80 wheat is specializing. who says
1T is?" he demanded. WHO in Am
erica gives any one the legal right to
fix the price on anything"
The Senator said he did not see any
authority in the Federal Reserve Act
| for contraction of credits.
Il do not believe the law gives any
| administrative officer the right to say
what kind of business shall bay,
credit and what shall not" he as.
| REI CT AEIHAY