The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1920-10-07
IF, BYRNES PUBLISHES CORRE-
sPONDENCE WITH HOUSTON.
No Cause For Panic.
Secretary Referred to Treasury l'e-
partment Not Banks-in ACCORD
With Har0 'ng.


ence with Secretary Of the Treasury
Houston, which shows that the secre-
tary in his statement CT last Monday
referred only 10 the attitude OF the
treasury department and had no refer
ence to the policy OF the federai re-
serve bank system in discussing the
paper of member banks. The secre-
tary advises M. 3yrnes that he As n
accord with Governo" Hard;ng's def
milton of s'orderly marketing" as
meaning the marketing Of the cotton
crop gradually. The telegram o! Mr.
Byrnes to Secretary Houston on Sep
tember rs reads as follows:
ssAll trade reports indicate your
statement construed as Intention OF
federal reserve bank not to discount
notes secured by cotton. Satisfied this
not your policy. Statements "f Gov
ernor Harding in his Cleveland speech
defining orderly marketing was reas-
suring to entire trade. If you are in
accord can you not issue statement as
to what you meant by 'orderely mar
keting'? Any course other than that
outlined by Governor Harding would
result in speculation by mills and buy
ers at expense of producers"
Reply of Houston.
Secretary Houston's reply of the
29th states:
s:My statement is, II am in favor OF
every legitimate effort to promote the
ORDERLY marketing of all commodl-
ties. but the government can not be
party to an undertaking to hold COM
modities off the market to enable the
owners artifcially for speculative pur-
noses to maintain war prices or higher
than war prices"
ssIn speaking of the government OF
course, 1 was speaking particularly or
the treasury. I was not speaking OF
the hanks. They are not the govern
ment. My statement was induced by
request of people that the treasury
either deposit money in crop moving
sections or that it revive the war
finance corporation activities. Either
of these things would necessitate the
treasury borrowing more money at
the high rates at which it is now bor-
rowing to meet current obligations.
Il has no money to deposit except for
government purposes. The war finance
CORPORATION would only assist in
financing exports. This power was
given at a time when it was feared
that exports would not go forward.
Exports have increased steadily to
enormous proportions and are now
running at the rate of over SS,00O,000
for the year.
Could Not Borrow.
"Obviously the treasury would not
be warranted in borrowing money to
further stimulate exports or to de-
post for lending purposes. The treas
ury should not be in the banking busi-
ness. It may interest you to know
that six times as much is being redls-
counted in certain reserve banks for
crop moving sections as has ever been
deposited in such sections by the
treasury. There is no conflict be-
tween my statement and Governor
Harding's. He was speaking for the
reserve system. I have assured that
I am in favor Of the orderly market
ing of all commodities. Governor
Harding asserts the same. The banks
are lending more money today to
agriculture and industry than has
ever before been lent. | have re-
peated1y expressed myself in favor
of orderly marketing and Of the pro-
motion of cooperative marketing
among farmers. I do not see how l
can add anything to the statement.
My insistence on the desirability Of
orderly marketing is pointed to my
statement as to the unWisdom of en-
terprises to hold commodities off the
market artifcially for speculative
purposes to maintain war prices or
higher than war prices. assume that
the great mass of the people of this
country would recognize not only the
unwisdom but the illegally of such
an undertaking.
No Danger of Panic.
In publishing this correspondence
Mr.. Byrnes stated he was satisfied
that the spectators know that the
secretary of the treasury was stating
the policy Of the treasury depart