Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-16
FEDERAL RESERVE
|NFARM AID MOVE
Authorizes Dallas Bank to
Buy Agricultural Bills. Be-
low Discount Rate.
BY JOHN F. SINCLAIR.

Reserve Bank to purchase agricultural
bills at less than the rediscount rate,
gives an indication of what may be done
by other Federal Reserve banks in the
agricultural section, II those banks so
desire. In this way the crop move may
cost than regular business requires.
While the Federal Reserve Board has
not made any change in its fundamental
policy, 1t is well known now that the
large commercial banks both in New
York and Chicago are supporting the
stock market as actively now as at
any time in the past. The New York
Federal Reserve Bank is rediscounting
freely, as is the Chicago Federal Re-
These two banks are generally sup
posed to be cooperating less with the
Federal Reserve Board than any other
banks in the system.
Should an investigation be made of
the Federal Reserve Board, one question
undoubtedly will be: What banks have
been unethically' using Reserve credit"
1t may prove dificult to define the
word "unethical." Some of the larger
banks stepped in at critical moments
in recent months to "prveent the wreck
ing of the market" as they said, by "un-
officially" using Reserve credit. as others
bankers maintained. Who Is right? The
question doubtless will be raised in the
coming months.
Senator King of Utah, who is in
Washington attending the tariff hear
ings, continues to ask each witness de-
manding higher tariffs the close and
intimate details Of the financial Set-up
of the corporation or industry which the
witness represents.
1t is contended by many that the
great growth of mergers In the last five
years has been first suggested by bank
ers and not by operators OF the COM
panies.
It is the contention of Senator King
and others that altogether too much
"proflteering in capitalization" is going
on.
Just what will develop as a result of
the great mass Of material which has
been brought out as a result Of the
tariff hearings along this line only the
future will tell.
But there seems to be development
at this time, which may crystalline pub
lie opinion favorable to some sort Of
an inquiry into all financial mergers.
Montague Norman, &c. governor of
the Bank of England since 1920, the
mystery man in world finance, Is again
in the United States.
Where? Perhaps not half a dozen
men in America know. But that the
governor is here to discuss again with
American banking officials. both private
standing in Anglo American finance
will be generally believed.
Gov. Norman, the son of well-to-do
English family, was educated both at
Eaton and Kings College, Cambridge.
In his college days he was a quiet, re-
served, bashful young man, studious, not
interested in society and cultivating but
few friends.
When the South African war came
along, he enlisted and did conspicuous
work in at least four battles. and was
rewarded with the distinguished service
order. That was in 1901 and he was
then 80.
At the close of the war he returned
to London and became associated with
a private banking house. He was
plugger and moved up step by step In
that field until 1920 when he was asked
to become governor of the Bank of Eng
land
He is a bachelor, great reader and
plays the piano with rare skill. Music
is his hobby-his avocation. Even now
he has few friends and rarely goes to
any purely social functions. He belongs
to only one club, the Athenaeum of
London.
But in the world of finance, this
quiet, modest, reticent EngliShman is
power of the first magnitude.
Paxton Hibben at the time of his I'M
timely death by pneumonia last Deem
Der, had completed three-Quarters of a
biography Of William Jennings Bryan.
Most of the material also for writing
the other quarter had been compiled.
C. Hartley Grattan took over the job,
and the book will be published this
Fall.
Claude G. Bowers, author of Hamil-
Smith College professor. have CO.
operated somewhat in the work, too.
Paxton Hibben was formerly Secre-
tary to Senator Beveridge of Indiana.
A graduate of Princeton, one time secre-
tary of the American legation ut
Petrograd, active newspaper man, he
became a merciless critic of measures
and men after the war.
He turned down several attractive
business offers to carry on relief work
in Russia, Turkey and other Southern
European countries; he just could not
get interested In business as such.
How men can keep on piling up
fortunes when poverty Is so prevalent
throughout the world Is more than I
can understand" said Mr.. Hibben on
one occasion. Maybe there's some
thing wrong with me, but just can not
enter commercial business while such
condition lasts"
His biography of Henry Ward Beecher
is considered by many really great
piece of writing. His new one Of the
Great Commoner" will be waited with
interest.
Farm storage of wheat has been urged
on growers by the Bureau of Agricul-
ture Economics In order to increase
their facilities for marketing.
The present system Of distribution is
chaotic.
Too large q proportion of hard red
Winter and Spring wheat is marketed
during the early months OF the crop.
Result: The country elevators and rail-
roads are taxed to the limit. Grain Is
handled hap-hazardly, without regard
to protein content.
How will farm storage remedy this
evil situation?
In many ways a more orderly mar
keting system will reduce car shortage
and embargoes, require less hired help
and win make 1t possible to bring wheat
in q much better condition to market
In this way farmers will be able to sell
their wheat on a protein basis.
The farmer must help In this-the
Government cannot do 1t all.
BY placing a part Of each new crop
In proper storage bins, the farmers Will
greatly aid the railroads and the termi-
nal elevator operators in handling and