Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-14
Farm Heads Meet
In Washington to
Aid Agriculture
Relief in Present Crisis
Sought Through Confer
enceS With President Will
son, Cabinet and Reserve
Board
The Atlanta Journal News Bureau,
623 Riggs Building.
BY THEODORE rTITER

- 4AAVOO66 T1AhEA
WASHINGTON, Oct. 13.-"General
Bankruptcy and ruin are inevitable"
unless some immediate remedy Is
found to relieve the present price
situation as it AFFECTS the farmer,
says a report submitted to the agri-
cultural conference here today by
general committee appointed to study
the situation. The report was adopt
ed by the conference without a dis
senting vote.
The committee blaraes the federal
reserve system for present prices
charging that it "has arbitrarily
withheld from assisting the basic
industry of this country to maintain
lever OF prices that at least meets
the cost Of production"
Declaring that the condition Of the
mind Of the farm population is "om-
inous." the committee says "this
state Of mind can only be changed
by frank and fair attitude on the
part Of those in authority-the test
Of which can be only their acts"
The federal reserve board will hold
conference with the general com
mittee at o'clock this afternoon.
Senator Overman reported to the
convention. Secretary of the Treas
ury Houston will meet the commit
tee at 1890 tomorrow morning. Mr..
Overman said.
The demands call for a LOWERING
OF the rediscount rate of the fedora,
xo
credits. q
vitality Needed Loans Restricted
The report was prepared by a com
mittee representing farmers from,
many states both in the wheat AMI
cotton belt in convention here at the
call of the national board of farm
| organizations. The report scores
Secretary Houston and other COVE, n
1nent officials for announcing that
price decline is in progress, which.
the report said, caused banks Of .ha
country to restrict loans vitality
needed by farmers.
Current market prices for farm
products are below the cost of pro-
duction," the report read, "and un-
less some immediate remedy is found
to relieve the situation. general
bankruptcy and ruin are inevitable
The conditions now facing the agri
cultural interest Of America ,are NOT
confined to any one section or any
one product.
In our judgment 1t Is wrong as q z
matter of policy artifcially to press
down prices and it is particularly
wrong to begin with the raw COM,
modities.
'"The condition Of agriculture is
now desperate. The condition of
mind of the farm population is oni-
nous. Producers Of all crops have
come to feel that the hand of the
government is against them. -
1t Is no concern of the federal
reserve system or of the treasury
department what the producers o
the country may determine is a
fair price,"
Signers of the report are J. T.
Brown. of Georgia; j. A. McParren.
pennsylvania; Fred Roberts, Texas: y
Frederick Shangle, Pennsylvania: A.
ID. Fairburn. Washington, D. C.t
Clarence S. Hates, Pennsylvania:
Charles w. Holman. Wisconsin: John
Tromble. Kansas; Senator e.. d.
Smith. South Carolina; Roy O.
Young, Louisiana; T. C. AtkesSfl.
West Virginia.; T. r. Kilkenny. Ali
iona, and ]. S. Wannamaker. South
Carolina.
Responsibility Placed.
The rep9 rt of the committee saws
the present situation was brought
about by the following official acts:
Restriction of credits.
= Raising the rate Of discount on
farm products.
"Discontinuance of the war finance
corporation.
The statements given out by the
secretary of the treasury, the gov
ernor of the federal reserve board
and the federal reserve banks have
been construed to the effect that COM
modify prices, particularly the price
OF farm products, were TOO high and
that pre-war basis, or an ap-
proclamation of pre-war basis of
prices must be reached within short
time. The consequent effect of
these utterances upon the member
Oe'AIho VI LIIS 1SuGTdl reserve system
and the banking industry of the coun-
try generally, was 10 cause them to
withhold such accommodations as
they might otherwise effect, Lecause
of the fear that the security taken
would necessarily decline.
1.-THE action of the federal reserve
board In counting the bonds held Ey
member banks as part of the COM
mercial credit Of the banks holding
these bonds, thereby enormously de-
creasing the power of such banksIto
extend the needed credits to the/ag-
ricultural interests of their respec-
tive communities.
"Your committee feels that the Of
ficials of the treasury department and
the federal reserve system have ex-
ceeded their authority when they
publicly announced opinion as to
prices of farm products which have
resulted in disastrous price de-
cline"
Function Of Reserve System.
The committee further reports that
1t is of the opinion that the func-
lions of these institutions, as ex-
pressed in the law, are to discharge
the duties imposed on them by the
law and spirit of the law, regard
less of what effect it may or may not
have upon the markets of the coun-
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