Montana labor news., 1933-02-09
The Washington
- Scene -
By LAWRENCE TODD

- AASA1 -
least, are using it freely in their talks
with the lawmakers. John Simpson
president Of the National Farmers
Union, for example, brought it W
when denouncing the bankers CON
spiracy against farm prices and the
wages of labor, when he was testify
ing before Chairman Norris of the
Senate Judiciary Committee, Jan. 81.
He told how, in January, 1920, John
Shelton Williams Of the Federal Re
serve Board told him that the Board
would begin deflation Of the farmers
in May of that year. Since that
time wheat has sunk to one-sixth OF
the purchasing power in gold which
it then had. Ten thousand small
banks have closed. A million and O
half of the farms have been sold I'M
der foreclosure. He then told of q
conference of industrial and banking
directors held Jan. 26, in New York.
to which he was invited. A represen-
tative of the Chase National Bank
told the conference that prices were
not too low, and that wages must
come down further.
'9There are 10000 corporation farms
now, where there were probably not
100 in 1920" Simpson said. "This
deliberate process of destroying the
farmers and the wage workers is go
ing on unless something stops it. Ii
Congress does not quickly take con
troll of credit and currency out of the
bankers hands, if something is moi
done in the next few months to show
the people that they r on a differ.
emit road and that there will be cor
r~ection of these evils, then there is
going to be a revolution in this
country"
Norris nodded agreement to this
judgment of the explosive character
of the situation. Simpson went on tC
say that there are daily "little revolu.
tons" already, among farmers who
go out to prevent the sale of theil
neighbors' farms under foreclosure
He spoke with sympathy of these ac-
tivities, saying the farmers were do
ing pretty well at it."
Then he suggested that Congress
by enacting the emergency bankruptcy
bill for the railroads and others, was
setting an example in violating the
sanctity of private contracts. And
he mentioned the action of big insur-
ance companies in New York in yield.
ing to the farmers revolt by agree.
ing to stop trying to foreclose OF
farms. As a cure for this breakdown
of business order, Simpson urged that
Congress quickly provide for actua.
governmental control of currency anc
credit disarming the banks of theil
present weapons of dictation to the
country.
At the same hour Senator Robinson
of Arkansas, Democratic floor leader
and sponsor of the debt-scaling anC
emergency credit bills proposed by al
of the chief farm organizations, wal
asking the Banking and Currency
Committee to report out his bills as
basic remedies. He proposed that
Sen. Cordell Hull's emergency bill
aimed to prevent default of taxes this
year by 4,000,0 900 farmers, be sent t.
the floor at the earliest possible mo
ment.
Hull's bill grants a 2-year morator-
ium on farm mortgage payments, in
%terest, and taxes which are delinquent
one year or longer. 1t also gives au'
thority to the Reconstruction Finance
Corporation to give emergency loans
to farmers, to a total amount of ST.
600, 000,0 00. Robinson confirms Hulr'
estimate that unless this scheme Is
adopted, the tax delinquencies thi:
year will bankrupt state, county anc
village governments throughout
large part of the country. The Rob
inson bill provides for an agricultural
refinancing corporation which woulC
have 81, 1000, 900, 900 with which to put
farm debt on a three per cent basis
Its more important point, however, Is
that which provides for local boards
of downward adjustment of farm
debts, by voluntary agreement as t.
the debtors prospective capacity t.
pay.
Washington is more and more stir