The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1921-07-01

hre some big tlgures In wal o.rSet
Ehsse days who are wondering if the
.r;d an;d adeAation" Of the farmers last
Es1l sR did not almost "kill the goose that
id tn the golden eggs," and whether
prIculture w can be revived from its
eImost moribund condition. These
Esme e1j men were quite gleeful a few
months ago when their manipulation
4 credit and of the grain and cotton
eYehanges, was resulting in a drop in
Ehe price of farm products that was
1rnous to the farmer, especially as
(hey were reaping millions on these
Transaction, but now that the boomer
nd Of lessened purchasing power has
kvung around and hit their own con-
kerns a staggering wallop they are
hot 50 sure of their Judgment nor so
kroud of their accomplishments.
Hurried conferences have been call
ID in Washington to see what can be
lone to bolster up industry-and the
s. 0. S. has come direct from Hard
|ng. The President realizes that he
S holding the helm Of very leaky
khp and he is calling in "the best
minds" to consider how to save the
tuation. ]. P. Morgan and some
bther big guns from Wall Street have
been at the White House several times
i late and David Forgan of Chicago
beaded another bunch of middle west
m bankers who consulted with Hard
hg late this week..
The President is frankly worried.
BE was elected on the slogan of
FVot for Harding and Coolidge and
prosperity for all" and it is very
oubtul whether he saw the breakers
khead before election. He probably
Ehared the naive belief which was so
nely expressed by many of his big
business hackers that the mere chang
|pg Of tenants in the White House
Eould in some mysterious manner
boom business" But it hasn't re-
(uted that way. Instead, business
PaS steadily gone from bad to worse
nd IT cannot be longer concealed that
aere is genuine alarm in industrial
ircles.
Republican politicians are not hap
Y over the situation, either. For
eneratlons they have carefully cult
ald the theory that all panics could
nlamed upon Democratic misad-
1mstratlon, and this was given some
aaslbllity because the occasional VIC
pnes Of the Democrats seemed to CO.
aelae With industrial depression. Of
.ufSe the 1907 Roosevelt panic" was
" counted. But now a period of
epresslon has .overtaken the Repub-
san party and its leaders are very
Iailul a lest they be condemned by
nelr own logic.
FEDERAL RESERVE BLAMED
sa .ne condition of the country was
ssssed \ U.s. without any camouaage in
y on.s aelate the other day by Smith of
suA carolina and Hef1in of Ala
s..A. Smith declared cotton had
= a,'e l'erced down until it was selling
s,as4 aaI OF It cost of production and
s,.eG Nv that unless the country banks
a,sas %s south got relief they would be
|N,ss; sa INTO liquidation which would
Eonld Eltipl!ate u a crisis that every man
l,ts S1u !, Oe appalled, even to contem-
anss Evidently hard times are not
Sa,so Saasoo to North Dakota.)
,ssals aator Smith places the blame
sdsesIy dasiy upon the management of the
n s, d;sa heserve system. "Here are
", ,uaSeounts a held almost at the same
y cs'i J1as : existed during the peek Of
Sers ~; !, 1or dehstion," he charged.
Few s ds,, : our gold reserve piling up
kat WY, THy, now approximately 56 per
nired dhen h only AZ per cent is re-
y II tb.ty " law Here they are boast.
eserua ss our reserves in the Federal
dore ~ system are. higher than ever
the ~. Nhat would the Senate think
& m IVY -! OF Washington were burn
r hsdin mat 1t had not used a hydrant,
at then LOT used any fire hose, but
A ens. nad more water in the tank
Il is, Is rs IS our financial system for
shessadT Tt TO come to the relief Of
Aat nou, u commerce in the situation
aids an confronts US, tending to-
dd hat .appall.ng disaster? Why
aie rate OF discount, based