Evening star., 1933-09-20
PRESIDENT TO HEAR
INITIATION VIEWS.
Roosevelt Likely Will Meet
Delegation of Cotton Grow
ers Tomorrow.
Continued From First Page.)

WHICH ne SalQ CQc ADMINISTRATOR was
expanding the currency. They included
increased open market purchases Of
Government bonds, establishment of an
open gold market, instructions to
the Reconstruction Corporation to be
liberal in making loans and appraising
the v4lue of collateral, the Farm Credit
Administrations move to cut the red
tape In making loans, and efforts to re-
open closed banks and to attempt to
liberalize the policies of the Federal
Reserve Banks.
Efforts to draw out any further ex-
position Of the Presidents ideas for
the steady rise In prices and wages
were unavailing today. He laid down
months ago the policy Of using infla-
ton II. as and when 1t may be nee
He is said not to be talking about the
subject now.
Complaint From Bankers.
Meanwhile. an assertion came from
the quarterly session of the Federal
Reserve Advisory Council that the
banks were being unfairly and widely
criticized on the presumption that they
are refusing to make leans"
Walter w. Smith. president of the
First National Bank in ST. Louis and
chairman of the Council. said in a
statement last night that banks should
not make loans that either cannot be
collected within reasonable time or
are not eligible for rediscount at Fed
eral Reserve banks"
money to be loaned is the property Of
depositors," Smith added
The committee headed by Senator
Bankhead, Democrat, of Alabama
formed to see what additional powers
the Agricultural Department nigh use
to give relief to cotton growers this year,
resumed its discussions today with
George N. Peek. farm adjustment ad-
ministrator and other department Of
ficials. The convention itself was
slated to meet again late today.
Senator Bankhead today said his
committee was pressing" a plan to
take one-half the cotton left in the
farmers hands of the market
He said the Cotton Committee, of
which he Is a member. had abandoned
for the present its fight on the cotton
processing tax.
Resolutions adopted BY the cotton
conference urged removal of the ~
cents a pound tax. but Bankhead said
"it seems to be the only method to raise
money to pay benefits to the farmer,
and we have dropped our fight on it.
temporarily at least"
The Alabama Senator said his re-
marks about the processing tax referred
only to the Cotton Committee and that
he did not speak for the general con-
ference of representatives Of Southern
States.
Senator Thomas served notice he
would not participate in the move
e. fnd hy Of
bia. S. c.. for a cotton selling holiday
No Agreement Reached.
The convention last night fought
over the issue for more than two hours
and finally recessed without agreement
Representative Jeffers, Democrat. Of
Alabama, took the role as peacemaker
and persuaded the divided groups to
postpone action.
This was considered tantamount to
killing the Sapp proposal, which was
described by Representatives Rankin Of
Mississippi and Wilson Of louisiana as
slaps at the Roosevelt administration.
Senator Bankhead and Rankin and
Wilson led the fight against the Sapp
proposition.
Informed Of the Presidents willing
ness to receive the delegates. Senator
Thomas said he would attempt to find
out their attitude later in the day.
Plans went forward at the Farm
Credit Administration in the mean
time to hasten the flow of S400 900 900
into the farm bolt through quicker and
more liberal appraisa's of lands in con-
rection with applications for farm
mortgage loans.
Administration officials in Washing
ton remained silent on the imitation de-
mands, although Secretary of Agricul-
ture Wallace, at Chicago told the Grain
Dealers Association he still favored
controlled imitation.
Conference Urged.
The representatives from nine cot
ton States at their convention last night
authorized Chairman Smith of the Sem
ate Agriculture Committee to call Ma
tionwide conference Of farm leaders in
event the administration does not take
early action to raise commodity prices
through currency imitation.
Senator Thomas proposed the reSolu-
ton authorizing Smith to call a mass
convention of farm leaders here.
Il know" Thomas sid, President
Roosevelt doesn't care to make sug-
gestion on imitation before acting. SEN
ator Harrison of Mississippi, Chairman
of the Finance Committee, recently
called on Mr.. Roosevelt and discussed
imitation, and it was evident to me from
Senator HarriSon'S statements Mr.
Roosevelt could not tell him any
thing"
Text of Letter.
The text of the letter to President
Roosevelt, signed by most OF the dele
gates, read:
Dear Mr.. President:
I'VE. the undersigned delegates, rep
resenting nine of the cotton growing
States, are greatly disappointed in not
being able to present to your excel
lency in person the resolutions which
were adopted by our convention yes
terday. We extend to you our. sym
pathy in ycu- illness and our hope Tor
your speedy recovery.
I'VE handed to Mr. Early, your sec
retary, the resolutions adopted by our
convention, and we respectfully. but
most earnestly, ask your attention to
them as soon as your physical condl-
tion will permit
"The situation in the cotton growing
States Is desperate. We respectfully
remind you OF the fact that, within
the next 80 days, the cotton crop Will
pass from the hands OF those who pro-
duce it, but who are now racing the
greatest I. loss and distress Therefore.
Immediate effective action to raise the
level of the price of cotton and other
farm products should be taken by the
national administration.
I'VE, therefore. suggest that you give
your reply to the press as soon as
possible so that the millions OF people,
, who are anxiously awaiting. may KNOW
your answer to our resolutions"
Credit Program Advanced.
Meantime. the credit expansion pro-
gram went forward, with the Recon-
, struction Finance Corporation waiting
to see the first results Of its offering OF
81 ,O0O, 100000 to the banks to help
. business men work out their finance