The Lubbock avalanche. (Lubbock, Tex.) 1909-1922, 1922-02-14
The Address Of D. E. Lyday,
President Of the Texas State Farmers
Union, at Recent Waco Convention

was the American Federation Of
Labor and the Allied Labor Organi-
cations
Time and again in letters and
articles printed In the newspapers
| and many others warned our or
ganized Labor Brethren Of the dan.
ger and disaster which currency ana
credit contraction would force not
only upon farmers but on all class
cs Of labor.
We pointed out that the Govern
mcnt could only force lower prices
Of farm products by contraction OF
the volume Of currency and limita-
ton OF bank credits, and as % per
cent Of the nations business Is trans
acted by use Of these credits, any
continued limitation would bring
falling prices, lower wages, busi-
ness failures, bankruptcy and I'M
employment for labor.
Our warnings went unheaded, big
financicrs, the owners Of fixed in
comes and the blind leaders OF the
labor organizations continued their
pressure on the Government Tor
lower prices, and:
just rs NOON as INC NhT tiA'Af
the Federal Reserve Board detcrn-
ined 20 force down prices, in re-.
spouse TO this insistcnt clamor and
the following figures compiled
from reports Of the Comptrollers IN
the Federal Reserve Banks show the
complete success Of the so called
"Deflation Policy"
During the year ending August
18th, 1921, the volume Of money In
circulation was reduced.
National Bank loans and dis
counts have been reduced in amount
81 ,020 $4,000.
Loss in bank deposits, s2,3O3,-
5G2, 900.
Total reduction in circulation,
credits and deposits, S3,076, 800, 900.
or n reduction Of over $1,000 per
capita, for the entire population,
in the short space Of ~ months
During this same period gold %
the amount Of $500, a72, 900 has
been kept out Of circulation, locked
up In the gold reserves, which stand
90 the time these figures were COM
piled, 1902, 100000.
The Comptroller Of the currency
reports that the Federal Reserve
Banks could have issued 81, G92,-
100000 additional reserve notes or
could have granted s3,07G, 1909, 600
additional deposit credits and 90 the
same time have maintained the Gold
Reserve at the legal limit fixed by
law.
During the war from 1916 90 1919
the interest charged by the Re
serve Banks as fixed by the Board
was four 10 five per cent but hav-
ing determined 10 force lower prices
through this contraction policy, the
Board raised the rate in 1920 % 9
and per cent.
The financial history Of all ma
ti0ns has clearly proven high in
tercst rates contraction Of the cur
rcncy and limitation Of credits 20
be the cause and immediate fore
runner, Of falling prices, uncmploy-
mont, hard times, bankruptcies and
business failures; and suffering and
distress among the people
As a direct result Of these poll
rics, The price II farm products has
been reduced from one 90 two hun
bred per cent, farmers have been
reduced from prosperity 90 poverty
and thousand have lost their homes.
Hundreds Of responsible business
firms have been thrown into Bank
ruptcy, banks have closed their doors
millions Of ablcd bodied men tramp
ing The streets and highway out Of
employment Every city boz our ma
ton o. swnrming with unemployed
lab0rcrs and wave Of crime and
suicide has swept over our country
90 on extent before unknown
The members Of the Federal Re
serve Bank Board who perpetratod
this monstrous crime against help
less and unsuspecting people, have