The daily times., 1922-01-30

prices and it's attending hardship.
sacrifices, and losses involved tn
twhole world. It began in distant jar
IAN with the break in the silk marke
land the Chinese boycott of Japan
ese goods. It Travelled the circle O
the Far East, Australia, India, java
England, France, Italy, the whole Q
Europe, South America, Canada, an,
the United States. 1t embraced al
Icountries and all Industries, thougl
not to the same extent or in the SAM
way.
| GAS the failing purchasing powe
| of the world began to make itsel
| felt in the lessening of export de
mand for farm products, the prices o
agricultural products began to de
cline. AS prices of agricultural pro
ducts began to decline. AS prices o1
agricultural products declined, the
purchasing power of the agricultural
population, representing nearly 40
per cent of the total purchasing pow
er of the country, began to diminish
AS the purchasing power of the Amer
lean farmer diminished, the product
ion of industries that produced the
commodities of commerce began to
decline, and unemployment, result
ing in diminishing consumption, gave
prices"
The Council is in fullest accord
with this striking analysis of the sit
uatlOn by the Joint Commission of
Agricultural Inquiry, and without
quoting further from this very ex-
cellent report wishes to emphasize
the fact that the suffering of the
farmer has been peculiarly acute be-
cause, while factories and mines can
be shut down and the output reduced.
curtailment of production
already begun is well nigh impossible
for the millions of the individual far
mers scattered all over the world. I'm
less nature intervenes or the funds
give out, a new crop will be made
- OSIONeA'S VI WhCIASI not C00
previous one has been marketed
1t is significant that when prices
rose, apparently without end, it was
he consumer who suffered and threat
ened to Investigate the Federal Re-
serve System. In fact, the Senate,
IN May II, 1920, passed a resolu-
tion asking the Federal Reserve
3oard what steps. it was taking or
proposing to meet the then existing
initiation and consequent high
'rlces." When prices finally fell to-I
wards their pre-war levels, it was the
PRODUCER who groaned and blamed
he System. Similar freaks of mass
psychology could be observed in
'ther countries where people attri-
'uted the inevitable results on an
economic law to alleged mishandling
II banking credits. But it was not
lscount rates that were determining
he ultimate courses and levels of |
ommodity prices in this or any
ountry. World phenomena, far more |
oWerful than central banks in gen
raj or the Federal Reserve Board
n particular, were at play.
To tamper with the natural laws
I demand and supply has proven a
ostly and sometimes fatal expert
1ent for many Government which
tempted to ''valorize" it's staples.
ytfic
indulge in such a scheme it should
ave taken the responsibility of en-
citing legislation to that effect. By
o stretch of imagination, however,
ould the Federal Reserve Banks be
ssumed to have been created to exer-
ise functions of this character.
The world is not suffering today
ecause of high money rates, but be-
ause of the Gripping of it's power
consumption. 1t is because hun
reds of millions of people, individ-
ally and collectively, have lost their
re-war purchasing power that the
ommodities cannot find their mar
cts. Better markets for our products
i'll be found, and the lowered stand
rds of living abroad will cease to
lenace American standards when the
'orld over, wasteful Government ex-
for ornaments are cut
own, budgets balanced and praeti
al methods found to establish actualf
conomic peace and order in. Europe. i
that direction you, Mr.. President 7
ave inaugurated most auspicious
fovement, for which the world will
yer owe you deep debt of graft
lde. 1t is by, aiding your noble eff
orts towards that end that Congress
ill bring genuine relief to Americas
griculture, rather than by putting a /,