Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-12
PROSPERITY ISSUE
IS HIT BY REED
Declares Federal Reserve
System Alone Is Cause of
Good Conditions.

by the Associated PreSS.
ATLANTA, Ga. July 12.-Addres.
sing a joint session Of the Georgia
Legislature here today, Senator James
A. Reed of Missouri ascribed what
ever there is of prosperity today" to
the Federal Reserve banking system,
and gave to the Democratic party the
credit for the origin and perfection
of the system.
The Senator disputed 'the great
boast of the present administration
that it has produced a condition of
prosperity" and stated that no govern
ment can produce wealth. Wealth,
he said. is produced by the people
under given favorable conditions.
Here he referred specifically to the adj
vantages of the Federal Reserve
system.
Reviews Scandal Charges.
Speaking of the prosperity claim
Senator Reed stated that the present
administration was run for and by
the wealthy class. He devoted q
large part of his address to reviewing
incidents of scandal and corrupt use
of money in politics for many years
past and in conclusion stated:
mo man of good judgment proposes
to make war upon honestly acquired
wealth, but if this Government Is to
be perpetuated, it must be a govern
ment of men and not a government
of money"
II am but one man and my inf1u-
. ence is extremely limited but 1 pro-
pose to devote every energy of my
body and soul to the task of driving
the bribe-giver and corruptionist from
every office of honor and trust"
In his reference to the Federal
p universal bankruptcy would have re.
suited during the World War had
the United States not been operating
the system.
Gives Democrats Credit.
at is to the Federal reserve sys.
tenn that we must ascribe whatever
= there is Of prosperity today" he said,
: THE credit must be given to the
Democratic party. The bill was per-
: fected and passed by a Democratic
, House of Representatives. a Demo
cratic Senate, and signed by Demo
cratic President"
Applying his idea of the claim
of present prosperity. Senator Reed
said:
1T must be admitted that great
financial houses are reaping enormous
profits; that many of the transporta-
ton companies are for the most part
in a highly prosperous condition and
that many others are approaching
that condition; that the great steel
industry is highly prosperous, and
that in general most Of the manu-
! featuring concerns are paying fair
dividends.
Retailers Are Depressed.
upon the other hand, it must Just
as freely be conceded that the retail
merchandiser is in very depressed
situation and this is particularly true
in smaller towns and villages; that
rural banks have failed literally by
the hundreds and that this epidemic
has extended itself into many cities,
where some banking institutions have |
been compelled to liquidate or consol- |
idate to avert complete catastrophe.
The best, therefore, that can be
said for this administration prosperity
is that it is of an exceedingly spotted
variety and that the bright spots are
chiefly to be found among the ben
eficiaries of governmental bounty and
favor who have by the power of their
money maintained in authority the
political dispensers of these favors."