Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-14
RESERVE SYSTEM
HELD RESPONSIBLE
FOR LOW PRICES
CONTINUED from Rage -

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try and prices of commodities. We
believe that the rate of discount
should be determined, first, by the
character of the paper offered for
discount, and, second, by tho aggre-
gate earnings of the federal reserve
| system, and that the rate should not
| or discourage proper loans and COM
mercial transactions.
I'VE, therefore, insist that the fed
eral reserve officers and officers of
the treasury department shall dis
continue and desist from issuing
statements of their opinion as to
prices, and their attitude towards
the trend of commercial events"
Recommendations
The committee recommends that
the rate of discount for the mar
be made as low as justified by a
sound business and that the rate on
fixed or certain class of paper
shall be uniform and that the rate
be not changed during the period
reserve officers will take such ac-
ton at once, the report says with
particular reference to a more lib
eral policy in extending credits for
the encouragement of exports, we
UOl1SNS THAT Tie UlSIISSS dIlu
among the farmers of the country
will be greatly relieved"
prices of commodities that farm
ers receive will be determined by
the law of supply and demand, If
artificial and gatnful advices and
statements are withheld" the report
The question fd for these
serve bank) to determine is what
rate of interest and re-discount is
justifiable under the law, and to
leave the question of marketing and
prices to the natural laws of COM
merce.
"The people who sonsume our
products are, or should be, vitality
interested in the solution of these
problems, for as long as we have
a decadent agriculture we are sure
to have increasing cost of living"
One of the striking passages in the
critical resolutions adopted by the
farmers conference was the conclu-
sion that:
"The fact that we are facing
of production arises out of the fact
that while the federal reserve system
was found adequate to finance our
allies and ourselves during the great
est upheaval the world has eyer seen
it has arbitrarily withheld from as
sisting the basic industry of this
country to maintain a level of prices
that at least meets the cost OF pro-
duction."
enca voted, were not confined to the
cotton industry, but prevailed in all
branches of farming and We're "prac-
tically similar and uniform"
Arriving for the conference We'd
nesday, Representative Aswell, OF
Louisiana, suggested additional leg
islation to make it mandatory upon
the reserve system to furnish finan,
cial assistance to agricultural ana
removing present discretionary pow
ers. .., ~ aives
discretion to the executive branch
said Representative Aswel, ana
this discretion has been used agalnst
the farmer. 1 am lncilneo 10 Ih4 tla
that mandatory legislation Is the
only relief, and I know both orancne3s
If congress- are friendly to agricul-
eve may demand things here for
ten years and not get them undeT
the present conditions. There snouIo
err offers his good security, II shall
be mandatory upon the reserve sys-
tem to furnish him the financla! as
sistance to which he is entitled"
May Pool Low Grades
Indications were today that oeloae
would take some action favoring the
pooling of low-grade cotton by the
cotton growers in each state, such
pooling to be followed by efforts to
market the entire output IN european
countries. -
General conference had before 1t to-
day a. resolution introduced by FREQ
Roberts. of Corpus Christi, Tex, rep
resenting the United Cotton Growers
association, calling upon producers
to hold state conventions and form
a central body known as the Cotton
Growers Selling Commission" rms
commission, representing all growers
and states, would be authorized TO
handle all low-grade cotton put into
angements possible for its sale IN
Europe. Assessments on per bale
basis would be made to cover ex-
penses Mr.. Roberts urged favorable
action on his resolution as means
to early sale of the low grades, when
sales would enable the farmers the
better to hold higher grades for beF-
ter prices.
Wholesale criticism Of Secretary
Houston and the reserve board which
enlivened the late session TUESDAY
afternoon means that there Will be
rather sensational threshing out OF
and the board. The conference. re-
naming in session until dark Tues
day, heard various speakers unspar-
ingly condemn the withdrawal of
credits on farm products. The
charges against the board ranged
from that of conspiracy" made by
former Senator Marion Butler, OF
North Carolina, to statement by
Senator Ellison D. Smith, of South
/ Carolina, that at is none of the
boards business to attempt to Fix
prices"
ers' strike unless some relief is af-
forded.
Overman, of North Carolina, called
at the White House to ask the pres
ident to see a conference committee
Wednesday and to assemble his cab
met to hear the grievances. They
were told that it would be impoSSi-
BILE for the president to meet the
committee, but the president would
advise later regarding the calling of
the cabinet.
They returned and fed the
hconference that there a prob
ability Of presenting demands
to cabinet members reserve
board the followin Mean
while. the flow of he. oratory at
the farmers gathering continued.
Boards Policy Scored
The climax came when former
Senator Butler charged the board
with being in a conspiracy to con-
tract currency and debate prices, re-
CARELESS of the disastrous effect on
the producers. The policy of the
board, he said, was criminal.
J. J. McSwain, of South Carolina,
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