Arizona republican., 1920-10-01
DENIES HE SAID. FARMERS SHOULD
 NUT BE FINANCED
Secretary Houston States He E Did Not Say Backing of
 Producers to Obtain Fair Price Is Restraint of Trade

Secretary D. F. Houston of the treas ury department denies that he ever made the statement that. fin effect farmers should not be financed to market their crops at profit. and in- iers that he has been misquoted.
 Weuhcsday morning. in papers all " 'hc south, story was printed in when the secretary was quoted to the eIIect tho financing of producers that thoy might receive a fair price for their commodities Was conspiracy in re- strhint of trade. Instantly the Ameri- can Cotton association took up the matter, and from every section of the country telegrams of protest began to pour Into Washington.
 The Arizona American Egyptian cotton Growers association here i'm mediately asked public men to pro- test and Mark smith. senator from Arizona, and Carl Hayden sent in strong protests against the reported policy of the secretary. Where the story originated in the first place is not known. but the wire received to- day by Senator Smith shows that Sec fetary Houston was misquoted. Sec retary Houston wired as follows:
 Gives His Statement
 "Of course. I made no such state ment as that the financing of pro- N dueers that they may obtain fair Nprice for their commodities is a con- s- piracy in restraint of trade'
 My statement was. am in favor or every legitimate effort to promote the orderly marketing of all commodi- v ties, bat the government cannot be a party to hold commodities off the mar ket to enable the owners artificially Tor speculative purposes to maintain war prices, or higher than war prices.
 Tn speaking of the government. of course, was speaking in particular Of the treasury; was not speaking of the banks: they are not the govern My statement was induced by re- quest of people that the treasury either deposit money in crop-movins sections or that 1t revenue the war finance corporation activities. Either of these things would necessitate the treasury's borrowing more money al tho high rates it is now bringing tS meet current obligations. It has nc money to deposit except for goven. ment purposes. The war finance cor. porations could only assist in financing exports. This power was given at { time when tt was feared exports wouls not go forward. Exports have in creased steadily 10 enormous propor tions and are now running at the rat of over eight billions for tho year.
 Agrees With Senator Harding
 OuNlouSty. the treasury would no Do warranted in borrowing money t further stimulate exports or to deposi for lending purposes. The treasur. should not be in the banking business It may interest you to know that si, times as much is being rediscounte, fin certain reserve banks for crop moving sections as has ever been de posted fin such sections by thu treasury.
 There is no conflict between m, statement and Governor Harding's. IT was speaking for the reserve system have asserted that I am in favor O the orderly marketing of all commodi ties. Governor Harding asserts tn same. The banks are lending nor money today to agriculture and indus try than has ever before been lent.
 "I have repeatedly expressed myse in favor of orderly marketing and the promotion of cooperative market ing among farmers. do not see ho I can add anything to the statemen My insistence as to the unwisdom enterprises to hold commodities off q market artificially for speculative pu poses 70 maintain war prices or high than war prices. I assume that q great mass of the people of this cour