South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-02-13
6. D. P. WOULD PUT
ON A PANIC SCARE
Launch Propaganda on Floor
OF House to DiSCredlt
Federal Reserve.
special 10 NE News Tlmes


indignant than concerned at the
apparent attempt Of certaIn repub-
leans OF prominence to throw q
panic scare into the country. Con-
fident that the thoroughly tried
federal reserve system viii continue
- be a bulwark against any SER
ious financial disturbance. officials
Of the government are not alarmed
by the mutterings Of the calamity
hOwlers. but are severely critical Of
those who. for political advantage.
evidently would create havoc iu
American business and industrial
circles.
Knowing that the ancient republic
can cry shat "a fun dinner pail may
be assured only by the return 0f the
republican party 20 fun powers in
the nation will not find a responsive
ear under existing prosperous con
ditions, some of the republican lead
ers seemingly are making deuber-
ate and concerted effort to break
down the confidence of the people
in the financial structure created
by the Wilson administration, which
withstood even the shock Of world
war without a perceptibIe tremor.
Locks Like Conspiracy.
Leading democrats are reluctant
20 charge the republicans with such
extreme craftsmanship but they as
sert they cannot overlook the fact
that three republicans prominent in
The affairs OF the house Of represen-
tatives have recently i'm apparently
carefully arranged sequence express
ed fears Of money panic.
Pep. Robert Luce Of Massachus-
etts. was the first one to sow the
seed OF possible financial disaster I'm
an address on the floor Of the house
few days ago He was followed
In the same arena by Rep. Frank
- " MondeH OF Wyoming. republican
leader, who also viewed with
alarm, and expressed grave doubt
OF the nations ability to weather the
storm with a democrat at the helm.
OF words TO that effect To clinch
the matter came no less a parsonage
than the speaker Of the house.
Frederick W. Giuett OF Massachu-
sets. who deserted his chair long
enough to go 20 his home city Of
Springfield 10 make an address in
which he followed the same line Of
argument as his party colleagues,
suggesting 10 his auditors that f.
nancial panic was imminent, FAC
cording to press reports"
Replies To Calamatists
Rep Cordeu Hull Of Tennessee.
democratic authority on things fl
nancial and commercial in the
house. SCOTS at the pessimism OF the
republican leaders. The fall Of for
eign exchange, the basis Of the re-
publican fears, he regards as being
inevitable under existing circum-
stances and says the cure will be
found in natural processes Of read
i&stment. which he asserts will cause
STothing more serious than business
fluctuations.
THE industries which had a sur
plus and which depend upon for
elgn markets for the distribution Of
this surplus are going TO suffer
through some dislocation i'm their
business" said Mr. Hull land there
may develop some little stringency
as a result OF the conditions, but
do not see any cause for alarm. The
remedy is going 20 come through
jerks and jumps, and because of
this there Is certain 90 be some dis
turbancC in some industries. but
others are likely TO be unaffected by
conditions
Mr. Hull pointed out that the do
mestic demand for iron and steel
building material is expected 20 alb
sorb the entire American output to
say nothing of the requirements of
the railroads for steel I'm the neCes-
sary continued rehabilitation. He
sees nothing TO be alarmed about
i'm the cotton decline and is conf
dent the shrinkage in food prices
that viii come with the Iessening
demand from overseas will I'm the
end be helpful 10 the economic sit
nation.
Wall 81. no Barometer.
The statement credited TO "a MEM
Der Of a Wall st. brokerage house.
on the eve OF his departure for Eu-
rope that history would be made
i'm Wall St during his absence
caused only amusement i'm inform
ed quarters here. AS one official put
IT, Wall 81. operators have not yet
realized what is apparent 20 every
one else. and that is that the coun-
kAry no longer trembles when the
Will 81. spectators get p1nicky
because OF conditions purely local
20 the stock market
"The fact is" said this official
there was a panic iu Wall 81. some
eight weeks or SO ago. 1t didn't
cause q H0rry outside of the street.
IS. however. Why. because the federal
reserve system Isl too strong 90 be
hurt by anything the stock manipu-
Iators may 90. Had that Wall ST..
disturbance occurred prior 10 the
creation OF the federal reserve sys-
tenn disaster would have resulted.
Just as IL did i'm the so-c3lled Roose-
welt pauic-a Wall ST. made panic
in 1897.
The best answer that can be
made 20 the calamity howlers today
IS 10 refer them 20 the absence of
national bank failures since the fed
-ral reserve system was established.
Prior 10 1914 there was Cd national