The Washington herald., 1920-12-14
Modified Measure Ap-
proved After Bitter De-
bate on Floor.
STIGMA OF CLASS
ACTION REMOVED
Forces of West and South
Combined in Passage
Of Relief Act.
ny ROBERT BARRY.

mOdlned GrOnna-NOrrlS RESOLUTION
to extend financial assistance to ag-
ricultural interests of the nation
The measure was approved after
modification. Vigorous opposition
developed to the original provision
directing the Federal Reserve BOARD
to extend credits to enable farmers
to hold staple commodities for bet
ter prices. The changes removed
much of the sting of class legisla-
tion and eliminated the taint ol
alleged bad faith with respect tc
the Federal Reserve Board and tho
farmers
AS adopted. the resolution pro
vides for the restoration of the
War Finance Corporation with {
view to having that Treasury De
partment auxiliary render finan,
cial assistance for the exporting ot
cotton. wheat. corn. wool. live stock
and other products" The meas
ure then expresses the opinion oi
Congress that the Federal Reserve
Board should take steps to gram
liberal extensions of credit" tc
farmers.
Attacks Made.
Amendment of the resolution fol.
lowed vigorous assaults upon II by
Senators George p. Mclean, Repub-
lican, of Connecticut, chairman oi
the Senate Committee on Banking
and Currency; Carter Glass, Demo
crat, of Virginia, former Secretary
OF the Treasury, and Atlee Pome.
rene. Democrat. of Ohio. member oil
the Banking and Currency Commit.
tee. Senators Glass and Mclean in
dulged- in heated debate with Sen.
ators George w. Norris, Republic
an, of Nebraska, and Furnifold NJ
Simmons, Democrat. of North Caro-
lima, over the proprieties and eff
cheney of the measure.
The principal changes in the
original resolution were elimina.
tion of the Congressional direction
TO the Federal Reserve Board tc
extend credits to farmers at the
lowest possible rate of interest" tc
enable them to hold their products
for better markets. The advocates
of the measure had to be content
with an expression of the "opin-
lon of Congress" that such credit
extensions should be made. They
yielded to the inclusion of "othel
products" so that benefits might
accrue also to manufacturer.
through the War Finance Corpo'
ration's efforts to develop foreign
markets
Vote Three to One.
The test of strength in the Sen.
ate came on the adoption of the
modified provision for the exten'
sion of credits to farmers to en-
able them to hold their crops fol
the West and South bowled ovel
the opposition by a 3-to-1 vote
The roll call resulted in a Alto
I6 decision to state the opinion Of
Congress in an Affirmative declara'
ton favorable to such credits
The original provision was sub
jected to a merciless attack By
Senators Mclean and Glass. Sena'
tor Simmons took vigorous excep'
ton to statements by Glass. The
Senator from North Carolina gath
cred to his support a majority Of
the Southern Senators and two ol
three Western Republicans.
Says Facts Lacking.
The facts contradict the theories
Mr.. Glass said. 'If we are to vote
a legislative expression in this mat
ter we must base it on facts and moi
on the imagination. This talk OF
contraction of credit has no founda-
ton in fact" -.-.
The Senator from Virginia quoted
oficlal Treasury figures to show the
amount of rediscounted paper in
September. 1920, as against the cor
responding month OF 1919, by Fed
eral reserve banks, as follows:
1929 1919
Richmond ...sl22, 900. 900 sss, 900, ,ooC
st. Louis ..... $4,000, 900 $4,000, ,ooC
Atlanta ...... 10000, 900 los, oo0, ,ooC
Dallas ...... 104,0oo,oO A, ,OOo, ,ooC
Chicago ...... $4,000. 900 234, 900, ooC
Minneapolis E. 112.ooo.o 900 $4,000, ,ooC
Kansas City =. 14s,0oo. 900 ss,eoo, ,ooC
San Francisco. $4,000, 900 $4,000, ,ooC
Says Needs Supplied
The Senator said those Fedora
Reserve Banks covered the princt.
pal agricultural and live stock pro.
ducing sections He added that ths
deposits in New York banks haC
been reduced S1,40O, 100000 b tn,
withdrawal of deposits by interior
banks throughout the country fol
extension of credits, that amount
being supplemental to over $4,000.
100000 in credits to agricultural in.
terests-
Those who stand here and tall
about drastic contraction of credits
don't coincide with the facts" Glas.
said. There has been a period oi
control of credits, not of contraction
of credits. The board has under.
taken to limit credits for luxuries
Any sane man Is bound to sympa.
thize with the agricultural interest,
in the existing situation and I will
do anything that may really relieve
them. but I think we ought to bt
frank and not try to pass the bucl
to another body. II we want to dc
something for the farmer let's do II
and not engage in this talk"
Simmons replied that the figures
quoted by Glass did not alter the fact
that cotton growers were unable tc
obtain credits through the Fedora
Reserve Boards policy. Senator
Norris fnterjected the comment thai
farmers were unable to obtain cred.
its for fertilizer but that automobile
dealers had no difficulty discountins
notes Of those same farmers