Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-10-14
PRODUCERS TOLD TO BE CALM.
Head of Reserve Board Cautions
High Price Advocates.

Washington, Oct 14.--After adopt
ing resolutions severely criticiztng
government financial authorities and
calling on them for assistance to
make it possible higher prices, aSri~
cultural producers held two hour
conference with w. p. G. Harding.
governor OF the federal reserve
board.
Mr.. Harding urged the producers
present to keep cool. and expressed
the belief there will be a reaction
from present low prices. He told
them he favored putting their crops
on the market gradually. He warned
against any attempt to withhold
commodities, and pointed to the re-
cent financial panic in Japan and the
present Cuban sugar situation as ex-
amples Of what might follow efforts
to boost prices to artificial heights.
Governor Hardins's remarks were
interrupted frequently by producers
who disagreed with him on various
points, and he in turn took some or
the speakers to task for statements
made by them.
That revision OF the rediscount
rates OF federal reserve banks may
take place this week was intimatea
by Governor Harding. who said ne
could not give definite answer to
request for lower rates on agricul-
tural paper because the whole matter
now is under consideration.
Mr.. Harding said that not later
than Friday the board expected to
make full announcement of the
policies which will govern federal re-
serve banks for the remainder OF the
year.
Senator e. D. Smith. of South
Carolina. spokesman for the asrl-
cultural producers. told Governor
Harding he believed rediscount rates
for agricultural paper should be low
cred. He also held that the graduated
rediscount system should not, apply
to this class of paper.
Resolutions adopted by the confer
ence prior to the meeting with Gov
ernor Harding urged the Justice OF
asking for SO wheat and 40 cent cot
ton.
Governor Harding at one point dur
ing the interview with the producers
was asked IL he believed farm prod
ucts should be sold below tho cost OF
production.
TN some cases." Mr.. Harding re-
Piled. !" you must take an average.
It isn't a strong banking position for
too much of one commodity to be tied
up at one time. / look for reaction
and think the whole hing is going to
level itself out. We should keep cool
a little while and await develop
ments."
Mr.. Harding declared that the de-
cline In prices was a Worldwide
movement and that such tactics as
the burning of cotton gins in the
south would not help the situation.
Sometimes these worldwide price
movements are a good deal bigger
than any board here in Washington"
Mr.. Harding said. "One Of the first
expressions of the changed feeling OF
the nation about high prices came
from the south in the overall move
ment. The spirit of that thing
spread. John Wanamaker cut prices.
Recently Henry Ford cut prices in
automobiles.
Like all these movements, think
this movement now has forced some
prices too low. Ny personal belief Is
that the producers are unduly
alarmed. All this talk about the
bankruptcy of the south doesn't help
things"
The delegation Of agricultural pro-
ducers has arranged for a hearing
before Secretary Of the Treasury
Houston today. They have what
they claim is special grievance
against Mr.. Houston because of
statements by him which they con-
tend have had the effect Of causing
bankers and the public to believe
that prices of agricultural products
have been too high.