The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-12-15
RESERVE
MEMBERS ARE FIRM
Will Probably Ignore Reso-
luton FavOring Financial
Help for Farmers
E ID LARGELY
T OF BANKING
Present Members OH Beard Would BE
Likely to Resign If Congress Should
Direct Them to Do Anything Con-
trary to Sound Business Judgment.

Direct Them to Do Anything Con-
trary to Sound Business Judgment.
BY DAVID LAWRENCE.
Especial Despatch to The Reformer')
Copyright 1920.
WASHINGTON, Dec. 1j.-Congress
would raise false hopes by the passage OF
resolutions promising financial relief to
the farmer. in the opinion of officials IN
the executive branch of the government
The senate has just passed a resolution
directing the secretary of the treasury to
revive the war finance corporation ana
nxnressing to the federal reserve board the
onipion that liberal credits should be eX-
tended to the farmers of the country. Tins
action of the senate will probably be fol
Invred nv n favorable vote in the house ana
tbep congress will nave discharged It's oo'
LEGATIONS to the farmers who nave Deeh
cIamoring for help as prices deemed;
But the truth is the resolution VIII DC
practically ignored II VIII not diu ny
situation. and the farmer who relies on II
* ant To he in a worse situation h he
now is. Investigation at the executive
end of the government reveals the fact.
for instance. that Governor Harding OF
tbe federal reserve board will stand pat
and will not regard the resolution passed
by the senate as mandatory
If congress wants anything lone II must
direct the federal reserve board to do IT
Inv amending the federal reserve act. And
if it does that it would not be surprising
to see the federal reserve board go to pieces
altogether by the prompt r~eSlgnatlons OF
several of its members. Either the fed
pral reserve board will act for the best IN
t~ercsts of the country, according TO It's
best banking Judgment or the federal re-
serve system Will become the football oil
congressional politics. That's the critical
| view of the situation as it has developed
i'm executive quarters in the last few days.
| Some inkling of the seriousness with
which members of the federal reserve
board regard the invasion of their preroga-
| tivps reached the senate yesterday for the
proposal to limit the discount rate TO >
| per cent was voted down after 1t was
learned what a miscellaneous effect the ac-
ton might have had on the entire banking
| situation.
So far as the federal reserve board is
| concerned the teeth were taken out of the
| resolution when the proposal was changed
from a direction to the expression of an
opinion. Governor Harding has Indicated
in his testimony before congress exactly
how he views the proposal to extend credit
to the agricultural interests and the ac-
ton of the senate has not changed his
mind. Mr.. Harding is to be governor OF
| the federal reserve board until August.
1922. and though he comes from the South,
| which has been inSistent that cotton grow
| ers be protected by the extension OF
credits. he is acting independently of any
political influence in the matter. The
fact that Senator Carter Glass, of Nir-
| ginia. a Democrat and former secretary of
7 The treasury. as we'll as Senator George
Mclean, Republican chairman of the COM
mittPe of the senate on banking and cur
rency, vigorously opposed the action of
the senate is proof Of the ~non-partisan
character of the opposition to the Gronna-
Norris proposal. Officials fear that for a
I day or two the market might hold up as
relief is promised by congress-, but that
when those who are holding their goods
finally find out that they cant expect
financial aid the bottom will drop still
further and the Revision of feeling will
be even greater against those who raised
false hopes.
As for the secretary Of the treasury and
the war finance corporation, the direction
Of congress that it be revived Will be heed
ed if the resolution passes both houses.
There is, of course a chance that a preSi-
dental vote may be i%nterpoSed as Mr..
H0uston's word with President Wilson is
very potent. However, even if the reSO-
luton should become a law over a veto
the chance for relief is still dependent
upon the personnel of the war finance cor
poration, the members of which are Sc
lected by the President. There are four
members of the board besides the secretary
of the treasury, and at present there are
two vacancies. Surprising Mr.. Wilson
appointed twofD Democrats. would the sen
ate confirm them for four years term CT
would the senate feel that Warren Hard.
ing out to have the chance to name these
new members? Delay would, of course
nullify the purpose of the resolution as il
seems to be the universal opinion III exec
utive quarters that the present emergency
will come to an end after New Years.
Moreover, the regulations of the wal
finance corporation are made by the cor
poration itself. 1t can demand all sort,
of security and practically decline to eX.