Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-10-13
FARN|ERS.SE:EK
70 FIX BLAME
FOR PRICE DROP
Agricultural Conference
Condemns Federal Reserve
Board and Others.
CREDITS RESTRICTED
BY ANNOUNCEMENT
Rsssrvs Banks Withholding Money
From Farmsrs Because Of Mandate
that Prices Must BE Reduced to
Near Prs-War 1asis-seeretary OF
Treasury Also Criticized For His
Action.
BY Associated Press.

Action.
BY Associated Press.
washington, Oct. 13.-Generai
bankruptcy ana ruin are inevitable
unless some immediate remedy is
found to relieve the present price
situation as Il affects the farmer,
says a report submitted to the asri-
cultural conference here today by a
general committee appointed to study
the situation.
Tho report was adopted by the
conference without q dissenting vote.
Tho committee blames the federal
reserve system for present prices
charging that it has arbitrarily
withheld from assisting the basic in
dustry OF this country to maintain
level OF prices that at least meet the
cost Of production"
Declaring that the condition OF the
mind OF the farm population Is "oml-
nous" tho committee says. this state
OF mind can only be changed by
frank and fair attitude on the par.
Of those In authority test OF
which can be only their acts"
Seek 60 Fix Blame.
The committee says "it is wrong
a i matter OF policy, artificially to
press down prices OF commodities
ma ii Is par4icularly wrong to begin
Nth the raw oommod dities. for such
program Inevitably forces upon the
nroducer the heaviest burden OF re-
constructors and readjus ustment.
rh6a report Of the committee says
ths present situation was brought
about BY the following official acts.
Restriction Of credits.
Raising the rate OF discount Oh
farm products. ~
Discontinuance Of the war finance
corporation. 49,
.The statements given out by the
.aa1,retary Of the treasury, the COVER
ncr of the federal reserve board and
fhA FEDERAL reserve banks have been
construed to the effect that COM
modify prices, particularly the price
&c farm products, were too high, ana
that a pre-war basis or an approxi-
nation OF pre-war prices must DC
reached within short time:
sscrstaryof Treasury Criticized.
.4The consequent effect OF these ut.
ferances upon the member banks ol
tha federal reserve systems and the
banking industry Of the country gen
arallv was to cause them to Wlthholo
accommodations because OF the rear
that the security taken would neces-
sarily decline.
a,rhe action Of the federal board IN
d,.countine the bonds held by me1n-
har hanks as part OF the commercial
cra6it of the banks holding these
bonds thereby enormously decreased
the power Of such banks to exteno !,
The needed credits to the agricultural
interests Of their respective COM
munities.
{. .sYour committee feels that the OF
ficials Of the treasury department
and the federal reserve system have
exceeded their authority when they
publicly announced opinion as to
prices OF farm products, which have
resulted In disastrous price declines"
Would Muzzle Departments.
The committee further reports that
II. is Of the opinion "that the functions
OF these institutions as expressed IN
the law are to discharge the duties
imposed on them by the law and in
the spirit Of the law regardless OF
what. effect 1t may or may not nave
on markets of the country and prices
OF commodities. We believe that the
rate Of discount should be determin-
cd first by the character OF the paper
offered for discount, and second, by
the aggregate earnings Of the federal
reserve system, and that the rate
should not be used as weapon to
deflAteA prices or discourage proper
loans in commercial transactions.
1--WE, therefore, insist that the fed
era1 reserve officers and officers OF
the treasury department shall dis
continue and desist from issuing
statements Of their opinions as to
prices and their attitude toward the
trend OF commercial events"
The committee recommends that
the rate OF discount for the market
ing Of the agricultural products be
made as low as Just1hed by sound
business, and that the rate on fixeo
or certain class of paper shall. be
uniform, and that the rate be not
changed during the period of crop
If the federal reserve Of
ficers will take such action at once,
the report says. with particular
reference to more liberal policy IL.
extending credits for the encourage
ment OF exports, We believe that the
distress and unrest among the farm
ers of the country will be greatly re-
lieved."
Want Supply and Demand Law.
prices Of commodities that farm
ers receive will be determined by the
law OF supply and demand if artifi-
cial and gainful advices and state
ments are withheld" the report con-
tinues.
"The question for theD officials
.(treasury and federal re/erve board)
to determine is what rate Of interes,
and rediscount Is justifiable under
the law and to leave the question of