Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1922-07-12
RESERVE BOARD APPOINTMENT


10 sell their food ~ reduced pricees
This resulted and II constituted ths
first successful stop taken by any
governmental agency 90 reduce tha
cost Of living.
But the time had como for a re-
action. The japanese silk market COLI
lapsed and tho beginning OF depression
extended 10 this country. a Philaoel-
phia and New York merchant, for
seeing price recession. overnight res
duced every article In mis- store 20 pc
cent. Tho buyers strife spread and
the overall movement camo into evil
dence, people wearing overaIls "a
preference 70 paying the high coming
prices
Il was inovitabis that al prices
should fall speedily. This included
food prices As the summer wore on
food products became cheaper ard
cheaper.
Reserves We're Threatened
Food comes from tho farms. ~
J takes a year 70 make crop. When
the farmers mad bought their seed
and hired their planting and culi-
waiting labor. the high prices we're s,it
prevailing. When ms time came for
them to sell their crops. the prizes
had been cut IN two. They sought "A
borrow money o. the banks n enahis
them - hold their crops IN mo hons
Of another rise IN tho price The hanks
extended credit up 90 'he point whers
reserve requ1rementq were threaten<
cd. Then a halt was called
TO 10 beyond this reserve require
ment By lending more money % farun<
crs and 0thers-9or business generatir
also was demanding hans would
mean 70 take tns American currency
of gold basis Tia Reserve hoard
had before il Tho spectacle % ths
German and Polish marks and 80
Russian ruhles a. well az other for-
eign curreucios They cav what hap
pened IN those countries when thegolt
baeis wss ,Ost ny The issuance os cure
rency beyond ne reserve requires
r1ents and decided that = would -
;. better sor nc United States % draw
: IN its belt for A few monks than %
. put the dollar in the same class VITA
q the mark and the rubIe Reserve re-
a auirernents were not susDended. al
o though money was lent T.gkt Up .
o the point where further lCcns woIld
l. have meant suspension.
= Hundreds Of millions ~ dollars vera
. sent out Of Wal street 70 be l4nt .
j. western farmers and business men,
Is Credits were extended 8 far az there
n vas real credit 70 extend. but the end
r came There was no more credit, "a
y more money. Farmers and others had
n in their possession more borrowed
l. money han ever before n he MS.
er .cry Of the country.
10 This raised the storm. The farmers
T. said they should have more credit al
any cost. Il was said that they warj
wiling % have the dollar enter th'
49, mark and r,.ble class. The Fedora
- Reserve Board stood bv The col,
- standard and insisted It should %
~. maintained .nv1olate. The result wa
q the formation os The agricultural
- bloc n Congress. q group Of men de
,r terzn!ued TO change the law regard
"a ing farm credits and other farm mat
IL ters.
* The countrys beie IS still draw
x light. but It - loosening and bein
re gradually filed out 20 It's former pro
nd portions. Also the gold standard ST
ne stands The vast volume OF loans
il being paid back steadily ana -
20 national currency mas = strong gol
backing.
ne But now has coma the expiration
n Governor Hardings term. The farm
D. ers are determined that re sha. p,
IS BE given a chance % handle the str
no alton again as ne did during -he q.
Ter preston. Bankers and other cuisines
20 men throughout he country VINO q,
on sire protection OI the gold standar
4se are equally soIic1tous that he -erna.
Dr. in office The decision 3 I'D 20 II
we p-assdaDr