The New York herald., 1922-01-19
The Federal Reserve in Politics.

The majority OF the country's popu.
lation is disturbed, and very much
disturbed, over the forcing of a
farmer into the Federal Reserve
Board. To this majority it looks as
bad to have him forced in by one
method as to have him forced in by
another method, when the reason for
forcing him in is chiefly II not solely
that he IS a farmer.
But nobody could make a greater
mistake than to think that the
general public feels as it does feel
about this situation because OF
lack of sympathy with the Ameri
can farmer. On the contrary, public
sentiment was never more sensible
of the all important need of agricul.
tural prosperity as the rock bottom
basis Of general prosperity than II
is now.
Public sentiment in the manufac'
turing. commercial and financial
States is well aware Of the vast loss
and terrific hardship put upon the
farmer through the drastic defiation
OF agricultural prices while the cost
of his labor, the cost Of his transpor-
tation and the cost Of HIS supplies
failed to go down as his crop values
went down.
Public sentiment is agreed and it is
insistent that there must be reliei
for the farmer and that 1t must be
prompt, effective and adequate. II
knows, however, as the common sense
farmer himself knows when he
considers the subject with the
same deliberate Judgment he gives
to a piece OF good plowing or effi'
cient reaping. that farming Is farm
ing and banking Is banking, as steel
making is steel making and surgery
Is surgery. Only the skilled expert
can do the best work, or even safe
work, in his own technical line.
What the public is deeply con-
cerned about In this Federal Reserve
Board situation, now developing into
a national scandal, is that when the
very first thing that the whole coun-
try should make sure of is that the
reserve system be kept out OF
politics it Is to-day put into politics.
II it is thrust into politics by vote
chasers holding or seeking Office
from agricultural districts it will
be driven still further into politics
by vote chasers seeking for their
own selfish ends the favor Of the in
dustrial interests or the railroad in
terests or some other interests. And
when in that way the Federal Re
serve Board gets up to its neck in
politics II viii no longer be Of value
to the country in whole or In part ;
1t will be a damage and danger to
American institutions, American bust.
ness and American work.
In the name of the agricultural in
terests of North Dakota reckless poll
ticians seized the control Of the bank
ing machinery OF that state, using
Il in defiance of the rules Of sound
banking to keep themselves in office
while protesting to benefit the
farmer, and nobody knows better
than the farmers Of the whole
United States what befell the North
Dakota banks and what befell the
North Dakota farmers dependent
upon those banks for safe and proper
financial service. Tho Federal Re
serve system could not be converted
into a political machine and turned
from its true purpose Of maintaining
the integrity OF its liquid reserves
for the use of the whole country
rather than Of special interests
whether agriculture, manufacturing
labor OF any other. without the Fed
eral Reserve system going the way
the misdirected North Dakota bank
ing system went
However, the Senate bill has moi
yet become a law. The House Il
ctill TO express itself on the subject
and the President has the right OF
veto. n the Senate bill gets by tht
House the President will have his
inning.