The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-10-18
Governor of Federal Reserve
Board Addresses Southern
Commercial Congress
MONEY CRISIS IMPOSSIBLE
IF BANKERS KEEP HEADS
Land Banks Doing Valuable
Service-Richmond Invites
Body to Meet Here For Next
Session

New York, Oct. I7.--The tremen-
dous task OF financing the nation for
the greatest war it was ever involved
in was the theme Of an address by
/ W. F. G.. Harding. governor OF the
federal reserve board. at the closing
session of the Southern Commercial
congress today. Helping the farmers
with government money SO that agri-
( culture could do it's utmost for its ma
ton was also discussed by experts.
Touching upon wartime banking. /"
Ar. aaSd!ng said:
"Iaere have been changes In bank
lsg 4aethe3= ever since the federal
banking system has been installed, but
the greatest change ever imposed
upon banking in this country was
caused by the war. For this reason
the banker must not only discrimi-
nate as far as the security Ia offered is
concerned. but must demand 10 know
the objects for which credits are re-
CURED.
/ That railroad stocks and other
standard industrial securities must
suffer in times such as these is to be
Ca }tSAt.N -tt4tL - Ihik oa AHe patti
otto debt We have to pay But the
wholesale slaughter Of values must be
prevented. l do not believe that the
recent marked depression IN values
on the stock exchange was an organ
ICED bear raid. But / am glad TO know
that the slump appears to have been
checked and that there is going to be
no great loss Of values. The people
are getting what may he called their
secoad wind and are ready not only
10 correct conditions but 70 insure the
successful flotation Of second lib
erty loan.
Il have heard criticism Of the sec
rotary OF the treasury's alleged state
reut that loans OF sl4 loco. 600 900
VIII probably have to be made before
next July, This ia a government by
anu for the. people and they want TO
know the truth. And. after all. the
money will remain here"
Mir, Harding said that no money
erss4s Mas posatsleNssf the h@n kars ieHfa
their heads, and said he was crate
fuF' for the support given the federal
reserve system
In calling for support for the lib
erty loan. the federal reserve board
governor said when the loan had been
floated he thought eight million
American would have invested in it
What federal farm loans can do for
Southern farmers and planters would
be too good to believe" by that
'overburdened and discouraged" class,
said George W. Norris. federal farm
loan commissioner. Continuing, be
said:
The federal land banks at Baiti-
more, Columbia. Louisville, and New
Orleans are saying to the farmers and
planters Of the South. IF you want to
pay Off your high interest rate mort
gage, buy land. Make improvements
or buy stock or fertilizer. We are ready
/ to lend you the money up to half the
value of your holdings The rate Will
be 5 per cent. the terms will be what
you want IL TO be. from five years to
forty And IL you pay us per cent
a year. IT wiz not only take care Of
the interest. but pay OF the principal
IN thirtN-stx years Already these
banks have applications for loans in
excess of s5o.ooo,c9o. and have ap-
proved loans over $4,000. oeo.
.'Ths bereffts that the system viii
bring to the South are many and great
IL will enable thousands of small
farmers 10 get loans on easy terms
who would not have been able to bor-'
row at all under previous conditions"
The knowledge that the farm loan
system is. in existence has been OF
immense heneft to tho agricultural
community ana has made our crops
have been" said William Peabody
Medium. assistant secretary of the
treasury and chief national bank ex-
amins-.
our part in the war can be financed
out of our present income" continued
Mr.. Melburn. "and Mt the close of tho
war the United States will be richer
than ever
H. II, Davis. president Of the Fed
eral Land bank. of New Orleans, was
another speaker on unole Sans money
for farmers and planters.
Judge Julian Mack. OF the United
States treasury department, explained
the details of insurance for soldiers
and sailors.
Mr.. Hamilton Holt. speaking for the
League to Enforce Peace, declared
that no inconcluaive peace must be al
lowed Germany, THE world must be
made unsafe for autocracy." he said
United States Senator Gore also spoke.
A warning against inturing COM
mercial relations with Central and
South America was voiced by I. s.
Rowe. assistant secretary of the treas
ury.
II the plans of the congress carry,
in the next three years, the South will
spend sl,s0o0 900 in advertising its In
dustries and advantages Ger settlers.
A resolution was adopted creating al
advertising committee in each one OF
the sixteen Southern states. the gov
errors to be the executive chairmen.
Every state will be expected to raise
$4,000 annually for three years, max
ing total Of s1.20a,ooo. The money.
it was explained. win be raised from
the railroads. banks and agricultural
interests. Tho resolution was offered
by Leland Hume, OF Nashville. Tenn
Chicago. Kansas City. BALTIMORE and
Richmond each invited the congress
there for Its next convention. An
executive committee will designate the
choice.
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