The New York herald., 1922-01-14

New York Herald Bureau
Washington. ID. c.. Jan. I3.
President Harding and the Federal
Reserve Board advisory council are
unanimously and emphatically op-
posed to Congressional action that
would dictate the naming of a "dirt
farmer" to the next vacancy on the
Federal Reserve Board. Notwithstand-
ing this, members of the agricultural
bloc in the Senate are determined to
pass the Smith amendment carrying
such provision.
The attitude OF the bloc leaders was
rot changed after they had conferred
with the President at the White
House to-day. The President was en-
phatic in his disapproval of 1ictation
on the subject, but said he was in
sympathy with the Kellogg amend
ment providing for the naming Of an
additional member. In that event he
said he would give due consideration
10 the claims of the agricultural in
terests for representation.
Council Presents Memorial.
The Reserve Board advisory council
called attention to the dangers of
class representation on the board and
of permitting pernicious political
pressure to be brought upon the re-
serve system. The council presented
The memorial follows:
1T is with great reluctance that the
Federal Advisory Council asks for the
privilege of an audience at time When
so many pressing problems of national
and international importance are occu-
pying your mind.
"A grave situation has developed,
however. which endangers the safety OF
the Federal Reserve system and In our
opinion, seriously menaces the future of
the entire country. The council views
these circumstances with profound dis
quiet and feels that it would be neglect
ful of It's duty II 1t did not seek an OPP
portunity OF bringing them to your at
tention.
There is before the Senate at this
time bill Is. 2263) to amend the Fed
eral Reserve act. The bill as reported
by the Committee on Banking and Cur
rency was not merely an unobjection-
oOio Out a. QtSlIdDlt dIUenuI1eHt, DTD-
viding that in selecting the members Of
the Federal Reserve Board the ires:-
dent should have due regard to n fair
representation of the different CONNER
cial. Industrial, agricultural and geo.
graphical divisions" of the country
Ohc word agricultural" being added to
the present provisions OF the law TO
conform to the basic requirement OF the
act that paper eligible for rediscount
,s.t l. rsr
Industrial or commercial transao tions)
An amendment or substitute bill, how
ever. was proposed on the floor of the
Senate which provides in part that
''the first vacancy existing from
the death. resignation, removal, or ex-
pration of the term of office of such
a member shall be filled by the appoint
ment of a person whose busi-
ness and occupation is farming"
Urges Withdrawal or Defeat.
'"rhis proposal the council believes
to be Objectionable class legislati
and. in the interest of the country as a
whole, when 1t comes up for considera-
tion on January II. as at present ar
ranged by the Senate's unanimous con-
sent, il should either be withdrawn or
defeated.
IF the law should be amended so n;
TO oblige you to put farmer ON the
board. one might ask in that case WIN
should not labor insist that IL as a class
should also be represented. and why
should not sirpilar claims be made by
merchants. manufacturers. exporters or
any other special interest or grot1, +?
indeed, two other bills of this nature
have already been introduced. That II
might or might not be desirable TO
put farmer on the board is not the
questionable wrong is In requiring, as
matter of law, that one special in
.erest shait always be represented on
the board.
Furthermore. such a bill. II enacted
would seem TO indorsc the unwarranted
assertion that the present plight of the
farmer Is due to the alleged malad-
ministration of the Federal Reserve
system. This dangerous slander has
been spread so persistently and un-
scrupulously that large percentage
OF our agricultural population have
accepted II as true. and the council fears
hat even BY n substantial number
OF members OF Congress the real
facts of the case are not sufficiently
Wen understood. The council begs OF
YOU. therefore. to use your great influ-
cnce with leading Senators 10 oppose this
proposed bin and the principles which
IL cmbodes. The culture success of tho
operation OF tne FederaI Reserve system
and the welfare of the country demand
that the Federal Reserve Board shall be
judicial and non-partisan body acting
In the interest of the country as a
whole. not a body influenced by political
pressure and expediency in furtherance
OF the claims OF special interests.s
What is causing this agitation
against the Federal Reserve Board !
among the agriculturists?
There is no doub. that tho farmer
yTs been and is stil passing through
n period Of great hardship. nor ~ there !
mich doubt that he believes the Federal |
Rcserve system responsible for his pres.
ent plight.
But what are the facts? Tho Joint
commission Of agricultural inquiry In
Tart !. of It's report summarizes the |
causes OF the present depression as fol- |
lows:
THE crisis was not confined 10 this
country The avalanche of declining
prices and its attending hardshps,
sacrifices and losses involved the
whole world. IL began in distant
Japan with the break in the silk
market and the Chinese boycott Of
Japanese goods. It travelled the