Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-09-30
Plan National Protest
By Organised Farmers
AgalnSt Credlt Policy
Commissioner j, ]. Brown
Asks Head of Cotton As
ISOLATION to Call Meeti''
at Washington

A meeting at once in WashinStoL
of the heads of every farm organi-
cation in the United States. for the
purpose of making protest against
the policy enunciated by Secretary
Houston. of the treasury department,
in respect to farm credits, will be
suggested by J. j. Brown, commits
sioner of agriculture of Georgia., to
| j. S. Wannamaker, president of the
American Cotton association.
In recent statements issued In
Washington, Secretary Houston has
declared that federal reserve banks
cannot extend credit to farmers for
the purpose of holding their products
until prices go up for such a policN
would be in effect aiding a conspir-
acy against the consumers.
These statements issued by Sec
rotary Houston are sharply chal-
lenged by President Wannamaker, of
the American Cotton association, in a
telegram sent Tuesday to the gov
errors. senator's. congressman and
commissioners of agriculture Of the
cotton states. Governor Dorsey and
Commissioner Brown received their
kilograms Tuesday morning The
governor sent his reply, which APP
pears below, and Commissioner
Brown was in conference with Presi-
dent Maddux. of the Georgia divi-
sion of the American Cotton asso-
citation. and other officials of that
body, for the purpose of framing his
reply.
Must Assert Rights
Prior to giving out his statement,
Commissioner Brown said he had
come to the conclusion that Secre-
tary Houston's announced policy in
regard to farm credits makes it nee
essary for the producers of food and
raiment in this country to assert
their rights, once and for all.
We are planning" he said, "to
suggest to President Wannamaker
meeting in Washington, at the earli-
est possible date, Of the heads of
all organizations of farmers in the
United States. including not only the
cotton growers. but also the wheat
growers, the cattle growers the hor
growers. the corn growers, the fruit
growers and others.
THE federalsreserve act explicit
ly provides credit facilities for the
producers OF farm crops, the intent
/ of this being to enable them to hold
lthe1r crops for favorable markets.
Apparently Secretary Houston is un-
dertak1ng to repeal the policy of the
federal reserve act by a personal
Idfctum. His logic If carried to its
ultimate conclusion must mean that
the farmer shall dump his products
on the market regardless of price
and regardless of whether he gets
the cost of production plus a rea.
sonable profit.
1T is all very we'll to talk Of de-
fation. but the process should be ap-
piled where imitation has occurred.
instead of proceedin in the opposite
direction. AS long as the spinner is
making 81 worth of cloth out of
every 40 cents worth Of cotton, IL
is not worth while to talk to the cot
ton grower about Debating the cot
ton market. AS long as the miller
is making multiplied profits out of
flour, it is not worth while to talk
to the wheat grower about Debating
the price of wheat.
I'VE have been positively informed
in writing by the officials of the
Sixth Federal Reserve Bank, in At
lanta, that they are not going to cur
tail their discounts on paper secured
by cotton warehouse receipts. We
want to know why Secretary Hous-
ton is outlining one policy in Wash
ington, while the officials of our bank
in this district are outlining another.
Secretary Houston's statements have
already hammered down the price of
cotton $50 points. The farmers are
insisting on bonded warehouses. They
are offering warehouse receipts for
legitimate loans. They are doing
everything in their power to secure
the benefits of the federal reserve
system. Thy are handicapped by
the failure of many state banks to-
become members of the system, and
by the statements of Secretary
Houston, which are being issued in
Washington"
Dorsey Answers Inquiry
to Mr.. Wannamaker, did not deal
with the problem of farm credits at
home, but replied to Mr. Wanna
makers inquiry as to the best means
of financing exports. His idea is to
organize in eachI cotton state a cot
ton bank similar to the one he is or
ganizing in Georgia.
Two questions were propounded
| by Mr.. Wannamaker in his telegram
| SentS broadcast on Tuesday The
first was the question as to what
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