The Birmingham age-herald., 1923-09-30
JOHNSON CHARGES RESERVE BOARD I5 RUN F0R WEALTHY
Magnus Suggests Kind Of Board He Wants To Serve
 The Common People

NEW YORK, Sept. PA federal reserve board. composed of a mer- chant, 8 wholesale dealer, retailer farmer. and representative of organized labor was advocated to- night by senator Magnus Johnson of Minnesota as g medium whereby 8 government of all the people might temper the power and profit seeking of it's most powerful class to the welfare 5f the country"
 The farmsr-senator sLoke before the Progressive Labor Forum in Car negie hall.
 lie characterized the federal re- serve board us black with the crime of deflation perpetrated against go per cent of the people on behalf of the financill ? per cent. He criti- cised the agricultural department as being "loaded up with meat packers cotton spe culatocs, grain dealers and Standard Oil educators" opposed government ownership of the rail roads until there was more public in- terest to watch non-political man. akement and discuss foreign policies which he felt were being used by the major political parties to distract attention from "bad domestic poll cies."
 Wants sovfetS Recognized.
 Recognition of the Russian soviet government as a trade measure wal recommended by Senator Johnson who said he believed peace could be promoted by well-conceived treaties although he doubted the wisdom ot engaging in "crusades to make the world safe For democracy" He in- sisted. however, that America cannot be bound to carry on wGr for another nation.
 He said foreign conditions had been blamed falsely as the principal factor in bad business conditions whereas s5 per cent of American business was done in America The people of Minnesota, hs said, were convinced that American strength and prosperity depended on the pros perity of the working classes, addins that the sarmer-labor revolt whicf elected him wanted a restoration oi American principles. not an over throw. We want no convuisions, , ol society" he asserted, "and are doing more to prevent them than some who pose as the leading champions oi stability" Frequently using tho phrase Wall Street gentlemen he said the Idea that strength and pros perity might be developed by helping the rich become richer more rapidly was IalSet anu souSht " oHSW the federal reserve boards deflation by means of Interfering with credit was @ poor policy.
 Says FInanciers Petted.
 Senator Johnson said finAncters needed government aid end paternaI- ism less than any class Of business when the board called loans and raised the rodiscount rates to aio them. although the government thought. 1t would be a crime to inter fere with the laws of supply and de. mand when stricken farmers asked machinery to stabilize wheat prices He said republicans had urged co' operation among farmers as pana- cea for deflation, but he round tnt best organization feeble when tns markets were weak from the nlAnel credit of the deflation period and u attendant-unempio
 The senator could not agree with proposals to abolish the reserve sys- tenn, believing that the two psl cent" would control whatever gov ernmental financial orga ntzatton re- placed 1t while the voters remained apathetic. Neither would he get en- thustastic over the revision for q dirt farmer on the board, as lonE a1 all the dirt farmers were "selectec by the two per cent"
 Senator Johnson recalled the con tention of the railroads that govern ment regulation costs them S1,0oO'- 000,000 year, asserting that tlnahc. ing costs a half billion and in thai there is one and half billions han dicap for government operation over private" He deplored criticism o1 those who urge "a littleNpublic own ership."