Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1920-10-22
HOUSTON BALKS
AT HOLDUP AID
Tells Farmers That Treasury
Won't Aid Any Scheme for
Artificial Prices.
REFUSES TO REVIVE WAR RULE
Heated coIIoquy Develops Between
Representatives of Agricultural
Interests and Secretary-His
Stand Approved by President

Washington, Oct. 16. - Secretary
Houston reiterated to representatives
OF agricultural interests in conference
here that. the treasury would not be
party to the Withholding of any COM
modify from the market in order to
maintain artifcially high prices.
Spokesman for the delegation we're
frank in their criticism of Mr.. Hous-
toms recent statement that prices had
begun to recede, but the secretary told
them as frankly that his statement
properly represented conditions.
The delegation sought mainly to
have the treasury revive the war
finance corporation, arguing that
through it they would be able to OBJ
tain funds to finance exports which
they claimed were falling off, creating
a stagnant market.
Secretary Houston asked if any
members Of the delegation would loan
directly on German bonds or other Sc
curlties, explaining that previous APP
peals Of cotton producers were that
the government should make available
to them the German market. A heated
colloquy between the secretary and
Senator Smith of South Carolina, fol-
lowed.
Germany must live" the senator
said "You know she must live. / see
no reason why her bond should not be
accepted. I would reply to your direct
question: Yes, a thousand times yes,
for, as I said before, Germany must
live or the world pays the price"
Senator Smith told the secretary
that he was 1.-THE one and only one" in
the government who could direct re-
sumption of governmental activities
which would relieve the situation COM
planned of by the. agricultural inter-
ests.
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 loan it, it meant
only that the treasury's borrowing
would have to be increased and the
government would have to call on the
people continuously 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 If
the exigency required.
Secretary Houston said the decision
of the treasury not to revive the war
finance corporation had been approved
by the President and numerous prom
inent senators and representatives.
All were familiar with the problems
with which the corporation would deal
If it were revived, the secretary said,
adding that the consensus of opinion
was that the benefits derived from
restoration of the corporation would
not counterbalance the evil effects it
would have on the general money mar
ket and credit conditions.
Prepared to press their demand for
a more liberal credit policy they met
with the explanation that they would
be granted hearing before the full
membership OF the 1eueIl AeSoANO
board apd its agents, assembled for the
boards regular fall policy conference.
Delegates to the agricultural con-
vention hoped to be able to present
their arguments before the board for
mulates its policy in so far as it af-
fects credits to farmers.
Governor Harding of the reserve
board has told committee which ap-
pealed to him for relief that the board
was preparing statement of policy
covering all phases of the credit stu
alton.