The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-04-29
FINANCIAL
DEPRESSION
IS SERIOUS
Secretary Of Amer
lean Cotton Assocla-
ton Writes of OBJ
servations Among
Banking. Interests

BANKING interests
Investigations among leading
and business interests OF
the metropolis OF the nation con-
vince me that the present financial
OF the country and the
losses resulting 10 agri-
culture and business as Il result OF
the drastic Grflation policy in:sug-
urated in 1920. is being viewed with
deep concern in this section Of the
concentrated wealth.
With twelve billion dollar losses
by the American farmers. most Of
which is still unpaid, the depre
ciatiOn and sacrifice of Liberty
bonds by the masses, ard the wreck
and ruin Of multitude OF bank
this condition has Gener-
atcd 4 nightmare cf serious alarm
in the minds Of MANY leading
in the East. These null.
tiplicd billions OF losses. now being
held in check in many local depart
mncts of trade and small banks,
must inevitably find their way into
and be unloadcd on the strong
boxes OF the great centers OF fin
ancc. There can be no escape from
this ultimate result. The farmers
are unable 10 pay Off debts con-
tractcd in m era OF unparalleled
initiation with Debated dollars and
Il continuing period OF low market
values for staple farm products.
The truth IS gradually finding
lodgment in the minds Of our big
iinanciers that witho., CREDITS or
cash farmers can neither stimulate
production nor liquidate past due
obligations.
1t is now generally conceded,
even in Wall street. that the de-
baclc OF artificial deflation went
too far and that the distribution OF
the enormous losses in the agricul-
tural sections can not be held in
much longer. When the
day OF final settlement and liQui-
dation comes. the yverllow OF loss
es upon the small streams OF the
country must automatically be alb
Sorbed in large measure by the
great financial centerS OF the na
iton. because ultimately the deck;
now loaded with debts must be
cleared and the final toll OF def;t-
ton accounted for.
There is strong outspokcn senti-
mcnt in Wall street against the in
OF an agricultural bloc
in congress. This is neither sur
prising nor unexpected. The poll
cies OF the government have so
long been controlled by big busi
ness concentrated finance in the
East that any attempt by congress
10 enact measures Of real benefit
for the south and west is looked
upon with suspicion and undis-
guised objection. Farm legislation
OF any kind ir congress. particl1-
larly if related TO finance. aronsas
both indignation and resistance
those who breathe the at
flowing through the sky
scr:lpcrS Of lower Manhattan. This
is not due 10 any sentiment antaS-
OniStic 10 the welfare Of tn" farm
ers as individuals or 10 the agrl-
cultural industry rs Il whole. II
beSpc:lks Il jealous fear that the
of federal legislation re-
lating directly TO agricultural fin
ancc may encroach upon the rights
and emolumentS OF centralized
interests OF the nation.
Some OF the big trade papers OF
Wall street. rejecting the senti-
mcnt OF big banking interests in
that section. bitterly aSSail The SEN
ator;al agricultural bloc and every
agricultural measure introduced in
congress which in any Wise tends
To bring financial relief to farmers.
even in this crucial hour OF their
fin;l nci;tl distress.
The new system Of agricultural
credits for short term farm loans
now pending in congress vii! doubt
less be vigorously opposed by these
large banking interests. their Satel-
liteS and supporters. Wall street
banking Interests appear TO be
ohscsScd with the idc;, that The
dc>;inic.s OF American finance is Il
divine heritage which they alonn
must exercise Tor the benefit OF ev-
rly department OF American llIc:
and that any cncroachment upon
such ri hts by government even is
m mpardonablc sacrilesc.
Wall street bankers have uA-
duobtcdly rendered great ser
vicc To thousands of local banks
the agricultural sec
lions Of America. bat there has
nc:'cr :tt aHy time in the past been
displayed any spirit OF ;tltruism to-
ward tho sections 70 which such
banking services have been re'-
icrcd. The nations demands for
n broader and more comprehensive
system OF finance hay" grown be-
yond The fixed set rules and rcGula-
,ionS oi Eastern finance. The
farmers OF ,he nation can no long
er look with safety 10 The bank
Vaults of the East nor Ia the fed.
cr;il reserve hahkinS system rs now
by Eastern banking in>
lcrcStS for satisfactory short term
u@ri, ult,ual credits in the future.
They have their eyes turned upon
the Goddess OF Liberty towering
abavc the capitol at Washington
where the authorized representa-
tiscs Of the people Sit in Judgment
L1nnn- -Lhr -uatinn 5 HliairS.