The Sisseton weekly standard. (Sisseton, Roberts County, S.D.) 1892-1929, 1921-07-15


Senator Kenyon of Iowa reflected
that lit is a fearful indictment OF
the civilization of the world that
! people are starving in Europe and
China and yet our own farmers are
becoming bankrupt because they car
not dispose of the goods that would
keep these people from starving"
Party Lines Are Shattered
Party lines were badly shattered
when the vote finally was forced.
Underwood, John Sharp Williams of
Mississippi, Robinson, Walsh of Mon
tana, Robinson and Glass voted with
the reactionary Republicans, while
Borah, Capper, Kenyon, LaFollettc,
Norris and other Repu blicans from
states where the farming interests
are predominant lined up with the
Democrats in defeating the bill. The
"Agrarian bloc proved it can keep
members in line and has sufficien,
strength to hold the balance of pow
er.
Vigorous attacks on the Federal
reserve banking system are certain
to follow. There is widespread
belief that the Federal reserve sys-
4 tenn has been used to debate farm
products to the advantage of specu-
lators and several senators quote
we'll known economists to support
their view that mismanagement of
the Federal reserve system is at the
bottom of much of our financial de-
preston.
Members of the agricultural
bloc" already have agreed upon sew
eral tentative amendments designed
to curb drastically the present auto
cratic powers of the Federal reserve
board and Lodges recess resolution
was a scheme to head this of with
out having to go on record by voting
for the amendments themselves.
Committee control and the cloture
are so perfected in the House that
there is no chance for radical legis-
lation to be discussed, much less act
ed upon, but there is unlimited de-
| bate ON the Senate side and the Adj
ministration is very anxious to NUT
f1e even verbal assaults.
Complaint over the arbitrary and
injurious operations of the Federal
reserve board is coming to Washing
ton from all parts of the country,
particularly the agricultural dis
tricts, and both Republican and Dern-
ocratic senators and representatives
from farmer constituencies are de-
manding the rate of rediscount be
lowered and that the board be shorn
of it's autocratic powers over Ameri-
can industry.
Smith Would Lower Rates
Senator Smith of South Carolina
told the Senate that he intends to
introduce an amendment to the Fed
eral Reserve act requiring, when
ever there is any reserve in excess
of the legal requirement, that the
rate of rediscount shall be lowered
accordingly; and he also declared
that .sthe time has come when we
should still further amend the Fed
eral Reserve act and by law require
that the board of governors of the
Federal Reserve system shall be
composed in part of men other than
bankers and not men who come SOLE
ly from the ranks of commercial
bankers"
Senator Smiths attack on the
Federal Reserve system was almost
as vitriolic as that of Heflin. Of Ala
bama, who, week ago asserted "the
Federal Reserves board jumps every
time Wall Street crooks its little
finger" Smith presented figures
showing that the Federal Reserve
banks on June %, 1921, had total
reserves of $500, 0os, 900 or $780,
$4,000 in excess of their legal re-
quirements.
"The Federal Reserve banks have
nearly one billion dollars of unused
gold" declared Smith, while sena-
tors have received letters from every
part of the country to the effect that
the banks are being asked to liaui-
date their loans to force agricultural
products on the market at bankrupt
prices, with high rate of redis.
! count The Senate should investi-