South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-11-23
BROOKHART AIMS
BLOW AT FEDERAL
RESERVE BOARD
Iowa Legislator Champions
Cause of Farmers Urges
Merger With Laborers.
By J. BART CAMPBELL.
q. y. =. stan Correspondent
fC<.,.,-.4.-f,. fn3o - \ 81


WASHINGTON. Nov. 22-Direct
control by the people. and particu.
larly Of the farmers OF the federal
reserve board and the vast financial
system over which it has jurisdic-
ton. IS, In the judgment OF Col
Smith W. Brookhart. newly elected
progressive Republican senator from
Iowa. The basic solution Of the ecO-
nomic Ills from which producer and
consumer are alike suffering.
BrOokhart came here 20 take his
place in the senate firm in the con-
viction that the farming and labor
Ing interests should stand together
instead OF allowing the 'mouopO-
l.stic interests" 20 keep them apart
lie agreed with the joint congress
sioual agricultural commission thai
out OF the consumers dollar tho
farmer receives a maximum OF -
cents. RE estimated that out or
each dollar spent by the purchaser
~ Industrial products the workers
sot but IS cents.
The biggest purchaser OF indus
trial products IS the farmers"
Brookhart said. Forty per cent OF
the people are farmers. ana the
farmers buy more than so per cent
of the Industrial products which tho
workers turn ort."
Hence. ln his opinion. 10 is 20 the
advantage of the worker 10 join
with the farmer In demanding
greater snare Of the profits on pro-
ducti0n.
"The salvation OF the farmer j.
cooperative marketing. Il viii
eliminate the middlemau, the specu-
Iator. and benefit both the farmer
and consumer
Tho best way to secure co-opera-
tive marketing is for the people,
and particularly the farmer 20 get
control OF the country's credit sys-
tem-the federal reserve board.
Founded on Deposits.
'Our whole banking system is
founded upon deposits, and certain
ly the depositors are entitled to
control their agents and 10 instruct
them how their funds shall be used.
1T is estimated that the farmers
represent 40 per cent Of all depOsi-
tors. labor p per cent. little bust
mess 20 per cent and big business
the balance. According TO such
percentage OF deposits the federal
reserve board should consist OF three
representatives Of the farmers, two
OF labor. two OF little business ami
one OF big business That is what
/ favor.
Control of credit is unquestion-
ably the keystone OF our entire eco
nomic structure" Brookhart sail,
as he denounced the dehation policy
OF the federal reserve board i'm 1920.
Called Back
Iowa, with resources tOtalIine
$500. 200. 200. was allotted but 1885,
100000 by the board in that year,
he explained All that the state
finally got was $15.OOO.OOO The
board overloaned the state $4,000,
600 and then arbitrarily called IL
back"
zone of the chief vices of the
present federal reserve system is the
practice pursued of overlooking and
calling back" he added AT the
time the board called back the
$4,000. 600 it ovenoaned Iowa il
had 000OOC,O0O it could have
readily loaned.
by such an ubiquitous and in
defensible system agriculture wac
struck down not only in Iowa blu;
elsewhere in the country II Will
take agriculture "a generation TO re-
cover from the fatal blow dealt it
10y such "a denation policy"