Imperial Valley press., 1920-10-26

cents to produce. 1 also explained 10
him my trip to the east interviewing
the different mills, in which they in
variably told me that they were posi-
lively afraid to come into the market,
because the decline in our price had
been so rapid, and that when they
really found out when the bottom was
reached they would buy some cotton.
II told him that what we needed
was the ability to borrow on our cot
ton and have it rediscounted. to bring
about this halt, thus stabilizing the.
market and allowing us to be able to
dispose of our crop in an orderly man.
ner.
Harding Seems Interested
Governor Harding seemed especial
ly interested in these statements, and
asked me to leave with the board a
copy Of my remarks and it would
receive the attention of the board,
while in session. In his remarks to
US as a body, he explained that he did
believe in the orderly marketing of
crops, and that the pendulum of prices
had now gone back too far.
"He said that he did not state, nor
was it the policy of the board, that
commodities should not be kept for a
higher market, but only that assist
ance for speculative purposes was not
advised.
81 replied that whether or not this
was the policy Of the board it was
the understanding of our Twelfth
Regional bank, also member banks, the
general public that this was their pol
icy, and something should be done to
dissipate this idea, and that the only
way we would know that it was not
their policy was for them to give US
the necessary assistance.
81 also explained to him about an
interview l had with one Of the
largest bankers of Providence, R. l., in
which the bank told me they could not
lend me a five cent piece upon my
cotton, but that if 1 got trade accept
ance from some mill they would be
glad to discount same, thus accommo-
dating the speculator and not the own
Ell. That the vice-president of this
bank told me they were under instruc-
tions from their own federal reserve
bank to take this course and not to
lend On any commodity held for
higher price, even though the selling
price was below the cost of produc>
ton. Delegates afterward told me that
my remarks seemed to make an im-
preston the board but it is too early
yet to foretell results, however, he
gave me the assurance that he would
make an investigation.
Houston Hostile
"Secretary Houston of the treasury
seemed to be very hostile to us and
said that he would not be party to
the bringing to life of the war finance
corporation.
"He was told very bluntly, however,
oy United States Senator E. D. Smith,
of South Carolina, that statements
eminating from his office about what
the price of commodities should be,
has caused lot of harm and unstable
ity in the general market, until bank
ruptcy was practically staring pro-
ducers of our country in the face.
He was told that it was not within
the province of his office, because Of
but only to carry out the laws to the
letter that were on the statutes. 1t
surely made the secretary vince under
this Indictment, and Senator Smith
asked him to cease any further state
ments along this line in the future.
Meredith Will Help
Secretary Meredith of the agri-
cultural department was very sympa-
thetc with our cause, and; IS going to
do everything in his power to help US
by using his influence with the Federal
Reserve, board and the treasury de-
partment, also the cabinet, in devising
some means to open up the export
market.
'It was the concensus of opinion of
all the officials here that the produc-
ers condition is deplorable, that the
bottom has now been reached, and
that we can look for happier times.
Senator Smith told both the Fed
eral Reserve force and Secretary
Houston that if they were not big
enough themselves to rise to this
our relief that this would be the last
time he would appear before them,
but would take the matter up in the
senate to bring about the necessary
legislation for us.
"The Federal Reserve board will
soon announce their new policy and
also send out letter to the banks to
define specifically the attitude of the
board.
whether results will be immediate
or in the future, all the delegates feel
that they have accomplished great
deal of good, and have left in an opto-
mistic frame of mind. This is my
opinion ALSO"