STATE INTERVENTION

E. H. H. Simmons, President of the New York Stock Exchange speaking before the members of the Chicago Stock Exchange at their annual dinner on Thursday attacked the Federal Reserve Board labeling its actions as an arbitrary curtailment of funds for stock market loans which would inevitably lead to a curtailment of progress and prosperity.

In making his attack Simmons was anything but original for almost every day for the past few weeks there has been some similar outbreak. On the other hand his statement does come officially from the head of the largest security market in the world and shows clearly that the Federal Reserve Board has hard sledding ahead of it.

The basic question involved is a large one, one which will surely confront America for the next few decades. As yet we have been unable to decide whether we shall have active government control of business, and in the few cases where we do have it, how much power the board or commission shall wield. The Interstate Commerce Commission and the Federal Reserve Board are unique in being the only government bodies that have grown to a position of real power, and now both are being challenged by big business.

If the present controversy over the Federal Reserve Board comes to a showdown the outcome will have tremendous implications as a precedent for the future development of the country. From an impartial stand it appears unfortunate that the metropolitan press has presented only the opposition due to the fact that it is voiced by rich men.