The Carlisle independent., 1920-02-19
REPUBLICANS TRYING
 SCARE BUSINESS
Officials Optimistic Because of Fede-
 ral Reserve System

l into the country. Confident that the thoroughly tried federal reserve sys- em will continue to be a bulwark against any serious financial disturb 4nce, officials of the government are lot alarmed by the mutterings of the calamity howlers, but are severely critical of those who, for political ad- vantage, evidently would create havol in American business and industrial circles.
 Knowing that the ancient Repubi- can cry that full dinner pail may be assured only by the return of the Republican party to full power in the
 -ation will not find a responsive ca under existing prosperous conditions. some of the Republican leaders seem ingly are making a deliberate and concerted effort to break down the confidence of the people in the fnan= aial structure created by the WilsoI administration, which withstood eve the shock of 9 world war without a perceptible tremor.
 Leading Democrats are reluctant to charge the Republicans with such ex- treme partisanship, but they assert they cannot overlook the fact that 5hree Republicans prominent in the affairs of the House of Representa- tives have recently in apparently care fully arranged sequence, expressed fears of a money panic.
 Representative Robert Luce of Mas sachusetts, was the first one to SOW the seed of possible financial disaster in an address on the floor of the | House a few days ago. He was fol lowed in the same arena by Repre- sentative Frank w Mondell of Wyofn- ing, Republican House leader, who also viewed with alarm" and ex- pressed grave doubts of the nations ability to weather the storm with Democrat at the helm, or words to that effect. To clinch the matter came no less a parsonage than the speaker of the House Frederick w. Gillettt of Massachusetts, who desert ed his chair long enough to go to his home city of Springfield to make an address in which he followed the same line of argument as his party col leagues, suggesting to his auditors that financial panic was imminent according to press reports.
 Representative Cordell Hull of Tennessee, Democratic authority on things financial and commercial in the House scoffs at the pessimism of the Republican leaders. The fall of foreign exchange, the basis of the Republican fears he regards as be- ing inevitable under existing circum- stances and says the cure will be found in natural processes of read iustment, which he asserts will cause nothing more serious than business fluctuations.
 ''The industries which had a surplus and which depend upon foreign mar kets for the distribution of this sur plus are going to suffer through somo dislocation in their business" said MT. Hull, land there may develop some little stringency as result of the conditions, but do not see any cause of alarm. The remedy is going to come through jerks and jumps, and because of this there is certain to be some disturbance is some industries, but others are likely to be unaffected by conditions"
 Mr. Huh pointed out that the do- mestic demand for iron and steel building material is expected to ab- sorb the entire American output, to say nothing of the requirements of the railroads for steel in the necessary continued rehabilitation. He sees nothing to be alarmed about in the cotton decline and is confident the shrinkage in food prices that will come with the lessening demand from OhC1SSotS VIII III CIlS tIlCl Dt neiplul to the economic situation.
 The statement credited to a member of a Wall street brokerage house, on the eve of his departure for Europe, that history would be made in Wall Street during his absence caused only amusement in informed quarters here As one official put it, Wall Street operators have not yet realized what is apparent to everyone else, and that is that the country no longer trembles when the Wall Street spec ulators get paniclly because of con- ditions purely local to the stock market.
 "The fact is" said this official, there was panic in Wall Street some enght weeks or so ago. It did | Al