The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1921-08-24
CHARGE BROUGHT
BY WANNAMAi|K'!'E|;::R|'! k T: |'!
CRITICISM OF FEDERAL RE-
: SERVE y, BOARD POLICIES.
!: COTTON ASSOCIATION HEAD
Z SAYS BANK HEAPS GOLD At
: EXPENSE OF CIVILIZATION.

: = EXPENSE OF CIVILIZATION.
Washington, Aug. 23.-Federai
reserve board policies in connection
with price and currency defiation are
hcynical, cruel and inexcusable"
and constitute financial tyranny and
commercial criminality' J. S. Wanna
maker, president of the American
Cotton association charged today be-
fore a joint congressional agricu1-
ture commission. The boards meth
DDS, he added, are s'heaping up gold
in the United States at the expense
of all civilization" ~
Speaking, he said, for agricultural
producers, the witness asserted the
federal board and banks were re-
sponsible for Nthe general price de-
cline. The boards pressure still was
being exerted upon "bankers who
are afraid of their shadow, who may
find all their loans called by the re-
serve banks any minute, and dare
not disobey it's ORDERS" according to
Mr.. Wannamaker, who asked the
commission to recommend legislation
for general revision of the reserve
board personnel.
!. He proposed THAT the personnel be
composed of IL members, nominated
from the various districts as repre-
sentatives of industry instead OF
banking, who should be appointed
by the president and confirmed by
the senate. Further, he suggested
that the commission recommend the
instant reduction in federal reserve
rediscount rates, 10 basis OF 8 IL
per cent. on Liberty loan collateral.
"The federal reserve banking sys-
tenn, created to serve the people by
its administration has made the peo-
Die servants of the system" he as
serted. cts policy will resuire the
American people to pay with debated
dollars a national debt borrowed in
inflated dollars"
Price declines that have been eff
fected lately, he declared, would not
help consumers, because ''they have
left nothing for agricultural produc-
GERS to do butt combine and reduce
production so low IN the fuure that
prices will give US some margin OF
profit and let US pay our debts"
"I heard as early as 1918 that
plans were being rugged to put on
deflation," Mr.. Wannamaber said.
saThis eliminated in what was called
a buyers strike in 1920. We never
had a buyers strike it was buyers
panic, the result of unceasing propa-
ganda sent out to make people
afraid of prices, to spread the fear
that prices were to 60 lower"
"By whom was this propaganda
spread?" queried Representative
Funk (Republican) of Illinois.
'I'M first take up the case of the
reserve board" continued Mr.. Wan
namaker, 'tand I'll ask the commits
sion to ask that board the amount
paid out for publicity during the last
1s monhs for correspondence and
the distribution of newspaper ma
terial."
Senator Harrison (Democrat)
Mississippi asked if the reserve board
had publicity men and Mr.. Wanna
maker replied that his impression
was "that they have and that they
are well paid"
Mr.. Wannamaker put into EVIL
dence, statements and bulletins which
he said the reserve board issued dur
ing the last two years and which he
said clearly showed its purpose to
bring about declining prices.