238

( AGRICULTURAL RELIEF
a similar decline and that stock markets and security markets after
June, 1920, were at the lowest point in 20 years?

Mr. ANpErSoN. It is true that industrial prices suffered a decline,
but it is also true that the decline in agricultural commodity prices
was relatively greater than the decline in industrial prices, and there
are plenty of reason for that, which are set out in the joint commis-
sion’s report.

Mr. Fort. Everything went down as a result of the raising of the
rediscount rate.

Mr. AxnpErsON. Oh, yes; and I think this ought to be said, also:
So far as I am personally concerned, 1 think the pressure was put on
too hard and kept on téo long.

Mr. Apxkins. I agree with you.

Mr. ANDERSON. But that is a matter of judgment, also.

Mr. AsweLL. The Chicago Federal Reserve Bank increased redis-
count rates the other day. What was the object of that—this week?

Mr. Apkins. I do not know. Following that up, Mr. Anderson,
evidently the Federal Reserve Board saw the great distress brought
to the country, and they are not liable to make that sort of a mistake
again, are they—that 1s, you would naturally reach the conclusion
they would not be inclined to make that mistake again?

Mr. ANpERsON. I would not think they would.

Mr. Apkins. With all that, even with what a very large number of
us considered a very serious mistake, we are not disposed to do away
with the Federal Reserve Board, are we?

Mr. AnpErsoN. Not at all.

Mr. Apkins. We feel that the Federal Reserve Board is a neces-
sary thing to stabilize our currency and our banking, etc.

Now, going back to this board—you stated what your notion was
in answer to a question by Mr. Fulmer, about what its powers should
be, that is if it was made up wisely, which we hope it will be, and if
it is provided that the President of the United States we hope will
exercise the judgment, that he ought to bring about a board such as
you think we ought to have; and if I have a proper conception of
your answer as to your notion of what powers this board should
exercise, that they should proceed slowly in such a way, in the en-
couragement of marketing agencies, that they must be a factor in
stabilizing the market?

Mr. ANDERSON. Yes, sir.

Mr. Apxins. I listened to you closely, and if I got it right that is
about the substance of it.

Mr. AnxpErsoN. I think that is possible.

Mr. Aprins. Take a board and its powers as provided for in the
pending hill, and the board was made up as you and I would like to
see 1t made up, and as we hope it will be made up, I do not anticipate
that if this board is made up in that way that they are going out and
would contemplate any great scheme that would upset our exist-
Ing marketing agencies that have been more than a century in de-
veloping, but their hope would be to do the very thing that you and
I hope they might do, start in a modest way and develop some-
thing; and if that system after years of experience, if successful, will
naturally become more and more powerful, but gradually supplant
existing agencies, and if it did not do that it would ultimately fail.
In other words, all the agencies that have gone out of business with