The herald and news. [volume] (Newberry S.C.) 1903-1937, 1922-04-28
DEPRESSION
CAUSES MUCH CONCERN
Harvie Jordan Writes From New
York of Observations Among
Banking Interests

The State, 26.
Investigations among leading bank
ing and business interests of the me-
tropolis of the nation convince me
that the present financial condition of
the country and the enormous losses
resulting to agriculture and business
as a result of the drastic defation
policy inaugurated in 1920, is being
viewed with deep concern in this Sec
tic of the nations concentrated
wealth.
With twelve billion dollar losses by
the American farmers, most of which
is still unpaid, the depreciation and
sacrifceof Liberty bonds by the mass
es, and the wreck and ruin Of null
titude of bankruptcies, this condition
has generated a nightmare of serious
alarm in the minds of many leading
inanciers in the East. These multi
piled billions of losses, now being
held in check in many local depart
ments of trade and small banks, must
inevitably find their way into and be
unloaded on the strong boxes of the
great centers of finance. There can be
no escape from this ultimate result.
The farmers are unable to pay off
debts contracted in an era of unparal-
leled imitation with Debated dollars
and continuing period of low mar
ket values for staple farm products.
The truth is gradually finding lodg-
nent in the minds of our big fnan-
ciers that without credits or cash
farmers can neither stimulate produc-
ton nor liquidate past due obliga-
tions.
1t is now generally conceded, even
in Wall street, that the debacle OF
artificial defation went too far and
! that the distribution of the enormous
losses in the agricultural sections can
not be held in suspense much longer.
When the day of final settlement and
liquidation comes, the overflow Of
| losses upon the small streams of the
country must automatically be ab-
sorbed in large measure by the great
financial centers of the nation, be-
cause ultimately the decks now load
ed with debts must be cleared and
the final toll of defation accounted
for.
There is strong outspoken senti-
| ment in Wall street against the lnau-
guration of an agricultural bloc IN
! congress. This is neither surprising
nor unexpected The policies of the
government have so long been con-
trolled by big business concentrated
finance in the East that any attempt
by congress to enact measures of real
| benefit for the South and West is
looked upon with suspicion and undis-
guised objection. Farm legislation
of any kind in congress, particularly
| if related to finance, arouses both IN
dignation and resistance among those
who breathe the atmosphere flowing
through the skyscrapers OF lower
Manhattan. This is not due to any
sentiment antagonistic to the welfare
of the farmers as individuals or to
the agricultural industry as whole.
1t bespeaks a jealous fear that the
enactment of federal legislation re-
lating directly to agricultural finance
may encroach upon the rights and
emoluments of centralized banking
and curtail the powers of Wall street
in it's supreme control of the banking
interests of the nation. Some of the
big trade papers of Wall street, re-
Aecting the sentiment of big banking
interests in that section, bitterly as
sail the senatorial agricultural bloc
and every agricultural measure in
troduced in congress which in any
wise tends to bring financial relief to
farmers, even in this crucial hour Of
their financial distress.
The new system of agricultural