San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-03-25
|SDEPRESS|ON
COMING At TER
] GOOD T|MES?'
Federal Reserve Board Con.
fronted With Perplex-
ing Problems. q.
Stop MUST BE GENTLE
Financial Experts Consider
the Farmer Weak
Link in Chain.
By HARDEN COLFAX.

By HARDEN COLFAX.
#SEryg>n- by The San Antonio Light.
Washington, ID. C., March 24.-ls
he prosperity of today too sudden
.hnd is there too much of it? Mem
beers of the Federal Reserve Board
sNho determine and control the finan-
.tial policy of the country are consid-
Bring these pertinent questions. New
Hork bankers and bankers from other
sections, with whom the board recent
v has been in conference, are inclined
10 confirm certain fears felt here in
Washington.
1t is becoming more and more mp
fbarent to the board that somebody
bught to put the brakRs on-gentiy
BIZ course, so that the passengers won't
be unduly Jared, but firmly neverthe-
ess.
Who is going to do it? How can it
be done without precipitating another
|beriod of difficult days? Should the
ederal board attempt to apply re-
strictive measures? If so what meas
lI,es, and how should they be ap-
billed?
/ Board Is Perplexed.
These problems and a whole tribe
bf their kin have perplexed the board
Xiuring the past ten days or so. They
hre still troubling the masters of our
Financial destinies. No answer yet has
been found; no policy determined.
1rbe policy is in the making as our
Runaway markets, stock and commo-
kiity, gather speed and the entire east
ern seaboard filings itself gayly into
another giddy whirl of speculation
t,iyaling the saturnalia Of our wartime
Boom.
Members Of the board are a bit
They fear that the men
Swinging some of the gigantic opera.
lions of capital are thinking wholly OF
oday and not at all of tomorrow.
The board is considering mainly the
Farmer as the weak link in the chain.
REPORTS Of the farmers financial con-
Hilton, buying power and prospects,
have been gathered by the dozen and
boiled down by the boards statisti-
clans and economists. These reports
show that the farmer has failed to re-
1zcres from his depression to the ex-
|e6t that non-agricultural activities
have recovered. ''i.-art. '243'.,'.
Ultimately, this correspondent is
D0IOIU1eu anu pNAA~'Nf;
these industrial booms will have to de-
bend upon the farmer and his buying
bower for their continuance. At pres
INT our industrial activity is sup
ported by the cities and industrial
,enters. When it gets to the farmer,
khe farmer will not be there to sup
hort il, by the text and substance OF
ysll the reports the board has been able
TO gather.
And when that time comes. the
board believes, our industrial activity
will slow down. The slowing down
|process may be gradual or it may be
Rapid. The board is hoping that it will
BE gradual.
The gyrations in the stock market
during the past two or three weeks,
and especially the present week. the
pyramiding of building values and the
manner Of financing new construc-
ticn; the speculation in sugar and
cotton; the impetuous rise in values
of iron, steel, copper, lead, zinc and a
whole train Of minor commodities
within the past few months, all these
hre giving the federal reserve board a
knotty problem to unravel.
Will the federal reserve banks boost
egain their. rediscount rates and thus
tnaAe money dearer TO the speculator?
THE board officially is silent as to its
Future course. largely because that
course Is still undetermined. How
lever, it raised the rate at New York
and Boston not long ago in an effort
to head off speculation and the effort
failed. It is doubtful if it would sue
coed now.
The banks have too much money,
according to their reports to the Fed
eral Reserve Board and other official
agencies to feel greatly at the present
apparently can be
QWr without recourse directly to
the Federal Reserve banks. The mon
Eyed institutions do not have to go
Ito the Federal Reserve banks for
funds as they did in 1919 and 1920.
they have the funds themselves now,
md those funds are idle by the hun
dreds of millions and actually seek
ing employment.
To Announce Policy.
The policy of the reserve board
Tint is in the making is expected 20
become manifest within the next 30
days. It may be delayed somewhat be-
yond its expected time because of the
sudden death last Thursday of one Of
its members. At the present time the
board is short two members. includ-
ing the governor. d. F. Crissingcr.
who is still holding down the office
of comptroller Of the currency.
| He will continue to hold it down.
although the Senate confirmed his
domination as governor of the Federal
Reserve Board until a successor is
named for his present office,
Meanwhile the crippled board con-
5tinues collecting information and its
analysis of conditions with view ul-
|timately 10 taking becoming action TO
curb what. in its opinion. seems a
strong tendency toward another pc
Rod Of depression.