The New York herald., 1921-08-01
II. III. EdmOnds Asks Harding
to Remove Officials of
Federal Board.
THEIR POLICY ATTACKED
Asserts They Cut Off Credits
and Ruined Farmers and
Business Men.

made public yesterday an open letter
to President Harding. in which he
charged that the drastic defiation OF
the Federal Reserve System" had caused
a 5000, 100000 loss to business and
industry, and asked the President to
remove the Federal Reserve officials
responsible for that policy.
His letter was prompted by the Presi-
dents recent expression of sympathy
concerning the lack of prosperity and
the resultant spread OF pellagra in the
South. Mr.. Edmonds charged that the
South was not alone in its stagnation.
but that as a result of the Federal Re-
serve Bank policy the same condition
affects the entire country to such an ex-
tent that millions of persons were let out
OF work, and industry, such as steel. was
running on Is or 90 per cent. basis.
Mr. Edmonds's letter follows in part !:
II am in receipt OF letter from a
Southern banker who tells me that for
mer Secretary OF the Treasury Houston
wrote him that he was opposed to the
this would maintain the price of these
products. while his aim and ambition
was to break down the prices. Whether
This statement be entirely correct or not
is immaterial, though it comes to me
from a thoroughly responsible man: it
Is, nevertheless. in exact accordance
with the methods adopted by the Federal
Reserve System in breaking down prices
fhrn1fph a cffo q ilYnapf 0f fb..
food supply or credit, just as essential
20 the life of business as food is to the
human body
Moreover. the people responsible for
starving into the present condition the
business interests of the United States
have. as shown by the sworn testimony
before a Congressional committee ana
by the proofs submitted before the
United States Supreme Court. been
guilty of definitely trying TO wreck State
I banks which did not follow their de-
mands as TO the par collection of checks.
You have doubtless read the statement
made by former Comptroller of the
Currency, the Hon. SHELTON Williams,
whose word no man can question. that
It was definitely said in meeting OF the
Federal Reserve Board, while he was a
member thereof. that If some desired
plan could not be carried out In any
other way than by the failure of State
banks It would be better to let them
fail.
Removal Is Urged.
"The spirit of men who engage In
such a campaign for breaking down the
established financial institutions char
tered by the States merely because they
would not become members OF the Fed
eral Reserve System, or yield to its die
tates to the destruction OF their own
business. Is a spirit of business immor-
ality which has shocked the country !;
and this country cannot have faith in
the Federal Reserve System until the
men responsible for that condition have
been removed from power Their in
slant removal by you for which there
is abundant reason. would be the remedy
which you could promptly apply to
create that confidence which Is now
lacking, and to furnish proof to the
country that while the policies of the
Federal Reserve Board under your ad-
ministration are being rapidly changed
from what they were the men RESPONSE
BILE for those unwise policies and for the
immortality of trying TO break down
State banks have been removed from
power
Even IL there were any ground on
which to attempt to uphold their cutting
Off of the food supply to the business
interests of the country, and the de-
termined effort TO break down prices,
there could not be q possible question as
to the immortality Of seeking by the most
drastic means to violate all good faith
and honor OF the country by endeavoring
to wreck the banks chartered by different
States merely because they refused to
yield to the dictates of the men In charge
- -
itself not only justifes but demands in
the interest OF the morality of the coun-
try and Of business integrity and honor
an elimination from power Of every man
responsible in part or In whole for that
work.
SAYS Country lis Sick.
THE national sickness Us not merely the
sickness of a comparatively few thou
sand or even perhaps hundred thou
sand pellagra victims of this defiation
and immoral work OF the Federal Re-
serve Board 1t is a sickness OF the en-
tire country. II Is sickness which has
closed thousands of factories. which has
kept hundreds OF thousands OF idle
freight cars on the tracks. which has
thrown out OF employment FIVE million
or more men eager and anxious for work
in order to support their families. 1t Is
o. sickness which during tho last twelve
to eighteen months has brought about a
decrease in the value of the products of
the farm and factory, and the mine. and
OF securities largely exceeding s25,00o.-
100000. The sum is far greater than the
actual cost OF the war to this country
Moreover. tho war stimulated some
lines of business and created employment
for men. This fearful destruction OF
values has entirely swept out OF exist
ence. never again to come back to the
people who have lost II. this s25 900. 000.-
600 OF value. 1t has created poverty In
the Industrial circles of the North and
West and South poverty In the cities
and on the farms poverty for those
who were rich and increased poverty for
those who had but little OF this worlds
goods. 1t has caused hundreds and hun
dreds OF suicides. Ii has brought about
an Increase In sickness In all parts OF
the land many, many times greater than
the reported sickness of pellagra in the
South, even IL the actual pellagra situa-
tcn In the South were far greater than
the report Of the medical authorities
would Indicate"