Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-02-15
COTTON, TOBACCO
PRODUCTION CUT.
URGED IN SPEECH

RICHMOND, Va, Feb. 12.-South-
ern farmers must pay more attention
to corn cribs and smoke houses" and
reduce overproduction of cotton and
tobacco this year, Governor Harding,
of the federal reserve board, speak
ing before probably the largest and
most brilliant financial gathering
which has met in Richmond in years,
declared in an address last night in
the Commonwealth club which fairly
| radiated optimism as to the future.
Governor Harding, who is here as
the guest Of John Shelton Williams,
comptroller of the currency told
gathering which represented every
financial institution in the city and
included, with two exceptions, thu
federal reserve board, that the peak
Of imitation was past and that there
was no reason to look to the future
with any other view than optimism.
IT have great faith in the Ameri-
can people when they assert them
Selves" Governor Harding declared
after telling his audience that the
mental intoxication which the pub
lie has been suffering is wearing off:
Price fluctuations must be stabil-
Ized. declared the speaker, and this
Is one Of the many problems which
have faced the bankers of the coun-
try. He told the bankers that each
should make up his mind that it
was his individual business to help
bring conditions hack to normal. He
advised all to pull together and re-
store the equilibrium of the country.
AT present buyers market ex-
lists" Governor Harding told his au-
dience, "the reverse of what has ex-
listed in the past few months" He
told the bankers what the policy of
the federal reserve board has been,
and took issue with those who have
criticized the recent defation of cur
rency.
From January %. 1920. issuance of
federal reserve notes were steadily
increasing, declared the speaker, and
all talk of the deflation policy Of
the system was imagination and not
based on cold facts and figures.
There was no deflation until No
vember S, when movements of crops
were practically all over. said the
speaker, and not until after this date
did the reserve system actually be-
gin a deflation policy. He asked his
audience if there was any deflation
between November 5 and February
| II, when there should have been, as
during this period business usually
| is at a standstill.
of goods was reiterated by the
| speaker who, however. told his au-
dience that this was meaningless and
does not make a demand for goods
Deflation last year. applied early in
| January, should have been a warn
| ing to farming interests for overpro-
duction, asserted Governor Harding
but was not needed.
| Thomas B. McAdams. vice presi-
dent of the American Bankers asSo-
citation, presided at the meeting and
| introduced the speaker. Because OF
| illness Secretary Houston was un-
able to be present.
John Shelton Williams, comptrol-
Ter of the currency. made short ad-
dress as the host of the board. He
read a letter from Secretary Houston
because of i'll health. Commenting
on the Richmond Federal Reserve
bank, he said he knew of no institu-
ton more generally applauded for its
work than that institution. and SAID
that during the past few years there
| has been no instance of a failure OF
a member bank of the institution in
the Fifth district. He also said that
of $50 banks which have failed re.
Gently in the United States but sever
| of them were member banks Of the
federal reserve.
| Edward Plat. vice governor Of the
board. met with probably the great
est applause of the evening, how
ever, when he paid tribute to Sena
tor Carter Glass. Although declaring
himself to be a Republican from New
York state, he said that too much in
praise of the work of Carter Glass
| in aiding in framing the federal re.
serve act could not be said. He de-
clared that although politically ar
opponent of the distinguished Vir.
ginia senator. he had on many occa.
| sions stood beside him as a member
of the committee considering the bill
when both Democrats and Republi
! cans We're opposing them.