The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-12-02
SOLID south
SLIP RESULT
OF REFUSAL
Mark Sullivan Says Great
Pressure to Influence Acts
of Reserve Board Has Failed
Political Clamor.
COTTON MEN PETULANT
By MARK SULLIVAN.

WASHINGTON, D. C, Dec. e.
There is one aspect of present cond1-
tions, and especially of conditions
during the recent change, so whole
some and satisfying that it ought not
10 become history without being def
initely recorded and brought to the
attention of the largest number OF
people
During the past three months, and
especially during the month proceed
ing the election, there was large
amount Of pressure on Secretary
Houston, of the Treasury, and on the
Federal Reserve Board. This pressure
came. and still comes, from large
variety of individuals and organlZa-
tions During September and October
it came conspicuously from delesa-
tions of farmers, led by their local
politicians The object was to press
the Secretary of the Treasury and the
Federal Reserve Board into taking
some action beneficial to those who
exert the pressure.
If it should be said that on some
occasions this pressure took. and still
takes almost the form and vehemence
of an attempt at intimidation that
phrase would hardly be too strong.
An election was pending. The party
IN power was on trial and votes could
be won by ecquiescence, or lost by
refusal.
Refusal Counts.
That the Secretary of the Treasury
and the Federal Board refused to take
any of the various actions demanded
il matter Of record. That the
Democratic party. being the party in
power, suffered by this refusal is also
2 matter of record. AcQuieScence by
the treasury would not have won the
election for the Democrats. But that
their refusal to do a thing which had
been specifically demanded by cotton
farmers in Tennessee and wheat and
cotton farmers in Oklahoma was a
large part of the cause OF those norma l.
ly Democratic States going Repub-
Hcan. is easily proved. The election of
Republican Senator from Oklahoma
is said to have been due directly to
resentment on the part of the cotton
raisers
whether the action demanded by
these politicians and farmers was, or
was not sound finance, and whether
the refusal by the secretary of the
treasury and the federal reserve board
point. The point is that secretary
of the treasury who holds his office by
appointment from the president and
federal reserve board. who hold their
office by appointment from the presi-
dent. knowingly made the choice and
took the position which everybody
knew we'll was bound to lose votes for
the party whose leader had put them
in office.
Wholesome Thing.
This is so wholesome a thing that 1t
is good to record it at moment when
confidence in government is being
impaired by revelations Of scandal in
another department. 1t is so whole
some thing that cynicism preceding
the event. would have refused to be
lieve it, when the creation of the Fed
eral Reserve board was under the dis
cussion in congress. one OF the chief
objections was that the appointments
would always be political and that the
board would yield in time of stress to
political pressure.
The episode in fact recalls a specific
conversation in which President vii
son participated at the time when the
Federal Reserve board was being ere
ated This argumont-that the board
would become the prey of politicians
and would yield to political or sec
President Wilson.
He replied that this was not neces
sarily to be feared. He sa id that there
are always some offices which car
be kept sacred from political pressure
He cited WWithin his own experience
the higher courts of New Jersey and
pointed out that no matter how low
the levels to which politics in that
state sunk from time to time. tho high
er courts We're kept immune. He said
~1kat it would be possible to achieve
the same immunity from politics from
Federal Reserve board and that one
way OF achieving it he could him~ eli
attend to by making the first ap
pointments men OF such high reputa
tiOn that they would create for the
office n dignity above reproach anC
of such character that no one CCulC
coerce them.
On Credit Side.
The resistance which this Fedora
Reserve board and Secretary Houston
Of the Treasury. both appointed by Mr.
Wilson, made to clamor from poll
ticians of the presidents own party
who in some cases made their plea by
from Democratic states is one of ths
very large entries to he set down OF
the credit side of Mr. Wilson's admin
istration. If it is followed as pre-
cedent by future presidents and future
reserve boards, President Wilson, il
This case. along with some other more
obvious cases, will be entitled to Credi
for giving one of the country's institu
tion a permanent impetus in the righ
direction
Whether the demands made on thu
treasury were proper or improper
whether the refusal was wise or un
wise from the point of view of SOunC
economics, as we'll as sound morals
does not matter. There will be plent,
of occasions to discuss that later OF
for the clamor for treasury aid con
tinues. and the larger aspects of thi
kind of thing will be the burden o
our domestic politics for years tt
come
happen to think that the refusa
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