The Birmingham age-herald., 1920-10-13
DIRECT APPEAL ID PRESIDENT AGAINST
 DEFLAT|ON IS PLAN
Farmers Faced With Heavy Loss Unless Drop In Price of Products Checked, Says
 Cotton Association
By Associated Press

washington, October 12.-Steps to ap- peal directly to President Wilson against the currency deflation policy of the treasury department on the ground that farmers generally faced heavy losses un- less the downward trend of prices Of farm products was checked, were taken here today by a special meeting of agri- cultural interests called by the American Cotton Association. Senators Oyerman of North Carolina and Harris of Georgia who are connected with the movement called at the White House to prefer request for conference with the Presi- dent and his Cabinet, and were told by Secretary Humility that they could have an answer by tomorrow.
 The question of interest rates, it was said, would be considered at lhe con ference tomorrow and the agricultural representatives gathered here declared they wished to present their views on the whole question of crop financing be- lore action was taken by the federal authorities.
 Speakers at the meeting, before adop- tion of the resolution proposing to take the problem to the President per- sonaily, repeatedly denounced the deflation policy of Secretary Hous- ton. Farmers stood to lose billions unless the government acted to check the fall of prices, they declared, saying that in many cases market prices were below the actual cost of production. The result would be greatly decreased yields next year, they said, if means to remedy the situation were not found.
 A charge by former Senator Marion Butler of North Carolina that there was a conspiracy of officials to force down the prices of agricultural products brought protest from John J. McSwain of South Carolina,
 CAN'T BELIEVE CHARGE
 T cannot believe one of them capable of conspiring to rob his fellowman," saI1 McSwain. T believe, however they made an error of judgment Let's req son with them and see where they have made a mistake"
 Agricultural Commissioner J. J. Brown of Georgia and Senator E. D. Smith Of South Carolina also protested agains; . statement by Mir Butler that the coun- try was about to face a panic as a re- suit of the deflation policy Senator Smith said there was "crisiS but no panic.~
 A general committee, composed of rep resentatives of each agricultural organ nation attending, was named te draw up statement to the public, presentin-, the plight of the growers in a declaration of principles to be adopted by the con veBtion.
 Sectional committees were named to consider the situation relating to their products and to suggest means which in their judgement would remedy them. All resolutions dealing with any pro I duct went to that sectional committee. A resolution calling for the pooling of all low grade cotton in each state. and the forming of a selling commission to handle sale of the staple for export to Europe, went to the special committee on cotton.
 Senator Smith told the delesates to as certain their legal rights under the fed eral reserve system, demand them, "and then get officers who will administer th, law He declared that farmers under the federal reserve act had the right c have their paper discounted.
 The senator said he knew of no author ity for the contraction of credits. CHARGES 20 PER CENT PROFIT
 eclaring th 2. tae New York regions bank had maca 200 par cent profit when tho law allowed i, only six Ter cent. Sen a -ov Smith said. They are robbing US n interest to pay taxes"
 He said the convention should dema nd a low rate of interest on gilt egde farm
 
 per cent on paper which the regiona bank discounts for the member banks
 "Just let this situation continue sar' the senator land then let the VtHa' men, the cotton men and the cattle men say, Here is our price We deman'' our rights and we will not loosen u one pound of meat, wheat jr cotton unti ", get them.'
 A suggestion tv I S. Wanr amaker president of the American Cotton As sociation that a committee be appointed to urge upon Congress the creation of revolving fund of one billion dollars tc be used in the interest of the producer and consumer for the economic handlno and marketing of the American crops was not acted upon, after Ben l.. Marsh of the Farmers National Council, pro tested against the motion. saying no one body could he said to represent all the American farmers.