The Birmingham age-herald., 1923-11-13
Senator Heflin's Speech DeliUered at the
 Jefferson Theatre, Birmingham, Ala. November 12, 1923

the Federal Reserve Banking System could have and would have prevented the panic in 1920 if Governor Harding had not, at the instance of Republican leaders and Wall Street financiers, de- liberately refused to let it do so. The gold reserve was placed there to be used if necessary to prevent a panic. His failure and refusal to use it to prevent the deflation panic of 1920 convicts him, as Richard H. Edmonds, editor of the Manufacturers Record, said, of the crime of hoarding the na- tions life blood and refusing to let it circulate.
 Let me quote just two lines more of
 that report of Governor Hardings to
 Congress, He said: "The credit situ-
 ation in the United States is at bot tom sound and safe" "Our economic and financial position is essentially strong" And yet in the face of these truths showing the strength and panic preventing power of the Federal Re- serve Banking System and in spite of 1 the fact that our credit situation was
 sound and our financial position strong, he not only permitted a panic to come upon us like thief in the night, but he did, at the instance of Republican leaders, the thing neces-
 sary to produce it to the hurt and inc | jury of millions of people in the South and West. He shut off loans on cotton, grain and livestock and forced Liberty Bonds out of the hands of the people of the South and West at loss of $15.00 and $20.00 on the hundred. New York
 could get all the money she wanted to beat down the price of cotton, but we noft1d oaf m fn hold the price. We were left helpless in the market place and the spectators and spinners got our cotton crop that year at loss to the people of the South of one billion six hundred and | twenty-five million dollars. CRIPPLING DEBT-PAYING POWER
 Bankers, merchants, farmers and
 others, with whom have talked, agree
 with me that the circulating medium, or volume of money, under which the years business is commenced in Jam
 uary, should not be reduced or cur tailed until the business commitments and contracts for that year have been settled. They agree with me that it is
 unfair and unjust to permit our people to commit or obligate themselves in 1 business transactions at the beginning of the year when the supply of money
 and credit is sufficient and satisfac-
 tory, and then to change both before
 the years business is closed so as to
 injuriously affect the market value of their products and cripple their debt paying pwer.
 If every one knew that the adequate
 currency and credit arrangements ir existence at the beginning of the year
 would not be hampered or impaired
 during that year, there would be peace
 of mind in business, business stabil- ity and increased business activity in every avenue of human enterprise and industry.
 The refusal to supply us with cur
 rency and credit necessary to prevent
 the loss of our property and the de- struction of our business in 1920 was crime against our people and a
 crime against the country. It has
 been said truly, "that any change in
 the circulating medium under which
 debt is contracted before the debt can be paid is a crime."
 [ The Federal Reserve Banking Sys- tenn is the greatest system ever de-
 vised by the genius of man. If hon.
 estly administered, it is positively bay the panic breeding agencies of
 New York, and there was not the slightest financial trouble anywhere
 in the United States. As long as it
 was permitted to function properly
 our people were busy, prosperous, happy and contented. THE HOLY GRAIL We were told in the beautiful lines
 of Tennyson that the Holy Grail, or
 Silver Cup from which Jesus drank
 wine at the last supper with the dis
 ciples, hung for long time on the wall of the home of Joseph of Ara
 mathea. So long as it remained there all was we'll in the home; the inmates
 were happy and contented, the voice of song and laughter was heard, the
 birds sang joyousiy in the trees and
 tfe flowers and roses flourished as
 they sweetened the air with their per- fume.
 But one day the hand of the in- vader came and pfucked the Silver Cup away. So soon as that evil thing was done, clouds of gloom and despond-
 ency lowered over the home. The . voice of song and laughter was hushe1, ! the inmates were sad and sorrowfu1, birds ceased singing and the flowers and roses dropped and died. Sir Gala
 had, a gallant knight, registered a vow that he would go out in search of the Holy Grail and would not re- turn until he could restore it to it's | time-honored palce upon the wall | | to bring about deflation and produce
 panic and before Governor Harding
 betrayed his people. and deserted the
 Democratic party to join the Repub- | licans, all was well with the Federal
 Reserve Banking System and all was
 well with the country. A new day had
 dawned in the nation. Every one who
 wanted to work found work to do. Ev- cry one who wanted money and credit with which to carry on his business | found both responsive to his call. La-
 Dor was constantly and profitably em- ployed. Capital was busy in every ave-
 nue of human enterprise and industry, | and we enjoyed an era of national
 prosperity unparalleled in the history
 of the country. But in an evil hour
 the criminal forces of greed swooped
 down upon the people like some
 mighty bosom, of destruction, and the
 Federal Reserve Banking System was made to strike down and destroy
 where it was intended to serve and | save.
 Property values vanished by the bil- l lions. Labor was driven from employ
 ment and seven million men roamed
 the country with nothing to do. Lib
 erty Bonds were forced out of the
 hands of our pople while every ave-
 nue of financial aid was shut in our faces. Factories closed and the hum
 of whirling wheels was hushed. Agri-
 culture fell down and all but perished. Commerce was paralyzed and the cry
 of distress was heard in the land, while
 millions of people in the South and West were literally robbed-many of
 them stripped of their accumulations