The Birmingham age-herald., 1923-11-13


 what was going to happen to reduce his debt-paying power and destroy the value of agricultural products. But they didn't start it in January-oh, no! The big eastern manufacturer and wholesale merchant said wait. The fertilizer trust said wait. Wait. until we unload our goods at top-notch prices on the merchants of the South and West. Wait till we can dispose of our fertilizers on the basis of 40-cent cot ton. Wait until we can sell our agricul- tural implements to the farmers of the South and West. Wait until Southern and Western bankers commit them selves and back the merchants and farmers in buying our goods at high prices and tie themselves up so they cannot get out. Wait until these things have been done and large crop has been planted Dld then you can bring on your panic.
 A splendid Southern gentleman, and the distinguished editor of one of the Souths greatest newspapers, told me that a manufacturer told him that the manufacturers succeeded in having the of their goods.
 Think of the banking system of the nation-the currency and credit facili- ties of hundred millions of people being manipulated in the interest of favored few to the embarrassment, hurt and injury of millions of peope!
 While making this fight in the Sem ate 1 received letters from different points in the South and West suggest ling that Governor Harding and his board had surely given notice to cer- tain big bankers and manufacturers that the panic was' coming several AL. III broke upon the people.
 One day I was speaking in the Sem ate on this phase of the deflation panic, and when I finished a Repub- lican Senator from the West, himself a millionaire, came to me and said: "You are right about them sending word to certain people that the panic was coming. They sent me word sev- eral days before 1t came and sug- gested that I do the thing necessary to protect myself and prevent losses." He told me that the panic cost him thousands of dollars.
 Governor Harding didn't give any notice to the farmers, merchants and country bankers in Alabama. There were several city bankers here who were not included in the list of favor ties. The laboring men, the wage earners of this state, were not notl- fed. The doctors, lawyers, preachers and teachers were never told that busi- ness disaster was drawing near, that a financial panic was on it's way to de- stroy prosperity and devour the sub stance of the people. Why were the big financial high-brows singled out and notified by Governor Harding in advance of the panic and the masses of the people left without warning to the furies of storm that left wreck and ruin and death in it's wake? Was he expecting to happen what has since happened-that they would stand by him for reappointment as Governor of the Federal Reserve Board, and as- sist in the effort to keep him at the head of our great Federal Reserve Banking System? Can any honest man approve his conduct in this matter?
 If the big financiers and manufac- turers were entitled to have informal tion in advance that panic was com ing, by what rule of right and law>of justice should such vital information be withheld from the other people of the United States? By giving notice to the big tinanciers and manufactur- CTS he enabled them to shape their business and prevent losses that other
 
 else knew that financial trouble was brewing. Not only that, but by telling them in advance that the panic was coming at a certain time he enabled them to speculate on a certainty on the falling prices of cotton, grain and Liberty Bonds, and, acting on his ad- vice, they made millions of dollars.
 I have never criticised the Federal Reserve Banking System. helped to create it. l have simply fought to hold it true to the purpose of it's creation. l felt that it was my duty to the peo- pie that l represent to do my utmost to have that great banking system serve the business needs of the people everywhere, honestly and effectively, just as it was capable of doing and had done.
 Just before he conspired with Re publican leaders and Wall Street Spec ulators and fnanciers to close the channels of currency and credit to the South and West and produce a panic, Governor Harding, in his report to Congress, said, in substance, that the Federal Reserve Banking System had financed the World War and met the requiremnts of increased business here at home. He said that it is capable of expanding more-that is, supplying more money and credits than it had done even during the World War without having to draw upon theegold reserves of the system. But that isn't all. He said that it was capable of expanding or increasing. very much more than it, had done the supply of currency and credits, by calling upon the gold reserves.
 l submit to you that if his report to Congress was true, and it was, that