Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-19
NATIONAL PROSPERITY is
cLOSE-WOvEN FABRIC
The Bloc system In Congress VIII
Weaken the Texture by Tearing
the Tbreads Apart

ON IT'S surface the Senate amendment to
" the Federal Reserve Act is innocent.
Indeed. II one chose TO do so, It would be
eosy to argue that the amendment has i'm
proved the law. 1t has eliminated the pro-
vision requiring the President to appoint
two men with banking and financial cx-
pcricnce to the Federal Reserve Board, and
il has inserted the word "ngricultural' in
that part of the law which directs the
President in making appointments to have
'due regard 70 fair representation Of tho
financial, agricultural, Industrial and COM
mercial interests and geographical divisions
of the country
This is so much better than the first plan
of the farmers bloc to amend the law in
such a way as to command the President to
appoint q farmer 70 the board that little
fault can be found with il on general prin
Ciples. II leaves wide discretion to the
President in making appointments and It
requires only that the board should be rep
reSentative.
But the law has been further amended so
as TO increase the number of members Of the
Federal Reserve Board from five 10 siI,
and IL Is generally understood that the sixth
member is TO be a farmer Tho Presidents
discretion was preserved in the law after he
had agreed to exercise that discretion as
the farmers bloc desired. At least this is
what the Washington correspondents are
saying, and they usually know.
This change. brought about by the threat
Of class interests 70 hold up legislation until
their demands were granted, must be re-
gretted because Of the way 1t has been
brought about. A bloc Of twenty eight
Senators. sixteen Republicans and twelve
Democrats. ignored party lines and party
Il t,. -. 70, Hha
farmers, as though they were not adequately
recognized already.
No business can prosper unless the farm
ers prosper. The bankers know this. and
SO do the manufacturers and the managers
of the railroads and the proprietors Of retail
and Wholesale stores. The interests of all
groups Of men are so inextricGbly connected
that nothing but disaster can follow any
legislation which is intended to benefit one
group without regard to any other group.
We cannot get satisfactory national legis-
lation under the bloc system. with each bloc
fighting every other bloc for special privi-
leges. The proper rule in democracy is
that there should be equal opportunities for
all and special privileges for none. Under
this rule the general good is the first con
slderatiOn.
The rule has been observed in the admin
!stration Of the Federal Reserve system
without any special representation of the
farmers on the board. The charge has been
made that the reserve banks have discrimi-
mated against the farmers, but the figures
prove that the banks have gone to the relief
OF the farmers in the emergency OF the last
year with greater generosity than they have
gone to the relief of the manufacturers. II
was realized that the farmers must he en-
abled to carry on II the rest Of the country
was 20 have food and II there was to be a
market for what was produced away from
the farms. AS result farm paper has
been discounted with ns great freedom as
was consistent with sound banking prin-
cples.
But there still is a survival o. lhe old
Popultst idea that the Government ought
to relieve the farmers Of all risk and pro.
vide warehouses for the storage Of farm
crops and lend money on them up 10 what
the farmers thought was their value, and
then TO sell the crops in the open market.
The Government cannot do this sort Of
thing And the Federal Reserve Banks
ought not to do it.
The representatives OF the farmers in
Congress. however, are likely to continue
to make trouble until the farmers them
selves are educated out Of their present
delusions about the hostility Of other inter
ests to them; that Is. the farmers IN the
purely agricultural States.
They are not making trouble in Penn
sylvaniu. although the agricultural product
of this State compares favorably with that
Of the richest Of the Western farm States.
This Is because the farmers are living close
to all other forms Of enterprise. We have
great textile manufactures here. We mine
coal and iron. We fabrlcGte steel We
make cement. We have great cities and
rich farming towns. And it is evident to all
that the prosperity of each business is de-
pendent on the prosperity Of oil the others,
II the West and the South can learn this
by diigent study OF the way the Eastern
States get along, the States which are agri-
cultural as well as manufacturing, there
will be an end Of sectional blocs.