Evening star., 1922-01-16
BY DAVID LAWRENCE.

agricultural bloc that he intends to ap-
point a farmer to the Federal Reserve
Board. Senators Kellogg Of Minnesota
and Kenyon Of Iowa. who today dis
cussed with the President the propohals
pending in Congress whereby the chief
executive would be required to appoint
farmer, gave the impression as they
left the White House that they would
persuade their colleagues in the Senate
to abandon the project.
The basis of the compromise. II. in
deed. the concession of the White House
to the agricultural bloc can be so de-
scribed. is simply that the executive will
do what the agricultural bloc wants. but
the latter will. on its part. give up the
idea Of actually specifying by statute
what the President shall do in the way
of future appointments.
On the surface, this has seemed to be
controversy between powerful group
in Congress which appeared desirous OF
usurping the domain Of the executive,
but the meaning of the movement lies
far deeper than that and Is significant
of one tendency of reconstruction which
affects not merely the farmers OF the
ers of the east.
In fact. the agricultural bloc owes
its existence to the very fundamentals
which are involved in the present con-
t~oversy. The farmers iceland their
attitude is completely reflected in the
aggressive position taken by senators
from agricultural states-that the
Federal Reserve Board was unduly
severe on the farmer during the de-
f1ation period, which began nearly
two years ago. The banks of the ma
tion were advised not to loan money
on declining markets. The farmer
was caught in the maelstrom of rul-
ings and advice by the federal re-
serve system. On it's part. the Fed
eral Reserve Board justifies what was
done. claiming that defiation is pain
full at best, and the farmer had
to take his medicine along with the
rest. But the farmer now points out
that the process went too far, and
that the Federal Reserve Board didn't
help him in time Of stress.
The overwhelming demand from the
rural districts for the revival Of the
War Finance Corporation. which Sec
retary Houston opposed under the
Wilson administration, and which
was reluctantly accepted by the
Harding administration. has worked
out so we'll that the farmers are
pointing to it as the best evidence OF
their Ill treatment.
Praise Finance Cooperation.
Why should the War Finance Cor
poration have been necessary, say the
agricultural groups. If the Federal
Reserve Board had comprehended the
needs of farmer finance, The fact is
the War Finance Corporation has
done some wonderful things. for
which the farmers in those sections
Of the country which have been help
ed will be everlastingly grateful
and the praises of Eugene Meyer, tr..
head Of the Finance Corporation. are
loudly sung in the north, east. south
and west. wherever timely financial
aid has been extended through the
vinance Corporation.
The agricultural bloc argues that
when the crisis came nobody on the
Federal Reserve Board seemed to
realize what a terrible blow was be-
ing handed the farmer. II there had
been a man on the board experienced
have happened. Men on the board had
dealt with the farmers through their
banking experience. but the agricul-
tural bloc contends that the farmer
viewpoint should have been obtained
from the other side OF the loan coun-
ter.
President II Sympathetic.
This much is admitted by admins
tration officials: The crisis might
have been better handled IL the gov
knows now about farmer finance.
President Harding is not unsympa-
thetic with the wishes Of the agricul-
tural bloc that a farmer be appoint
ed to the Federal Reserve Board. He
has indicated that he will pick a
farmer next time. This means un-
vacancy from the agricultural Sec
tions Of the country"
This geographical limitation ie the
Presidents idea Of the way the statue
should read. but senators have point
ed out to him that the present act
ence shall be selected, and they pro-
pose that in amending the act the
President shall be required to select
the board from the industrial, COM
mercial and agricultural sections OF
the country and that the words
Otherwise they will insist on the
phrase men "of farming experience
The opponents of the plan to specify
lust what class the Federal Reserve
Board shall be drawn from say that
If farmers are mentioned there will
be precedent for a demand for labor
ers. grocers. merchants. wholesale
and retail, and SO on through the list
Of trades and businesses.
The compromise will be to name the
geographical sections of the coun-
try-industrial, commercial. agri-
cultural-and the informal assurances
given by President Harding will be
sufficient to satisfy the agricultural
bloc, at least until the next vacancy
occurs. when they probably will e0-
ert pressure to have a farmer ap-
pointed to the board.
(Copyright, 1927