The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-09-02


Federal Reserve board and unani,
mously urged and pleaded for low
ering Of the rediscount rate and more
liberal extensions of credit and circu-
lation. A request was made of the
Federal Reserve board that they join
in. the request to the ,Seeretary-Treas-
urer to reinstate the War: Finance
corporation, it being pointed out that
the removal of same was having dis
astrous results and unless reinstated
it would practically destroy markets
and bring fearful losses to the ag-
ricultural. producers, who had already
incurred, expenses for the production
of their crops at the peak of high
prices and under the assurance that
there would be pressing demand for
increasing American production, and
that the cotton growers were assured
that there would be pressing de-
mand for at least fifteen million bales
from the 1920 crop. Efforts to Sc
cure relief through the Federal Re-
serve board in like manner failed.
''As result, today, we find that the
agricultural producers are facing a
loss in the price of American agricul-
tural products as compared with last
July of around eight billion dollars.
There is no market for agricultural
products except at one-third to one
half of the cost of production. Had
the sale of the three hundred thous-
and bales Of cotton made by the Am
eriean Cotton association, which sale
was COMPOSED largely of low grade
cotton, been permitted to go through
it would have resulted in bringing,
not only. great benefits to the cotton
producer, but to the business of the
entire nation and conditions would
have been far different today, not on
" as direct result of the benefits re-
csived from the sale of this cotton,
but the sale of this cotton through
the War Finance corporation would
have so demonstrated the benefits to
be secured as result of the active
operation of the War Finance corpor
alton, that the secretary of the treas
ury would not have had the nerve to
remove the said corporation and AM
erican exports would have shown
enormous increase"
The foregoing is an extract: from
a letter from Mr.. J. S. Wannamaker,
president of the American Cotton as
sociation to the Manufacturers Rec
ord. The statement which ne. makes
that Secretary Houston was opposed
to the expectation Of American prod
ucts because this would maintain high
prices in tbs country, is not new
charge. 1t has been repeatedly made
and is in harmony with the views con-
.stantly reiterated by Mr.. Houston in
'decrying the prices then existing and
Insisting that there would be a break
down.
It is likewise in harmony with the
determined efforts of Mr.. Houston to
prevent the functioning of the War
Finance corporation, the revival of
which was vetoed by President Will
son over the earnest protest of men
who understood the situation and
warned President Wilson that his We
to would further intensity the acute
agricultural situation. Fortunately
for the country, congress by an over
whelning vote, overruled President
Wilson's veto against the earnest pro-
testation of: Secretary Houston, and
put into operation the War Finance
corporation, the discontinuance OF
which by Secretary Houston without
authority. therefor was one OF the
nlOHuAfS{ttdS DluiOSAS VI I1S WA "a
But monumental blunders were SO
many in those days that it is difficult
to name which one was the greatest.
Mr.. Houston seemed determined to
prevent the expectation of farm pro-
ducts in order to prevent the malnte-
nance of profitable prices to the AM
erican farmers, and with his strong
influence in the Federal Reserve
board helping with all the power at
his command to break down prices,
it is very easy to see how the, chaos
of the last eighteen months has been
brought about. A blacker financial
crime against the American people
and civilization itself is not recorded,
In in the history of this country.
In a letter dated September 27th'
1920, Secretary Houston wrote to
Mr.. Wannan,aker:
"The activities of the War Finance