The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-05
BY WILLIAM JUSTUS BO1ES

Z .
to put In their winter crops next fall
These loans are TO be issued on crons
that are slowed and will be available
only for operations on 100 acres mr.
less. The assistance, therefore. will
be dispensed at the rate Of SO an Acre
with the interest rate at per cen,
and the loans maturing in the fall
of 1919.
Emergency Relief Measures.
These proposals are very interesting
and suggest the pressure that has
been brought to bear upon the Federal
Reserve Board to change various
laws SO as to help out the farmers
and various other producers. II the
members of the Federal Reserve
Board had not formulated a definite
programme with the Idea of'safeguard.
ing the finances of a country at war
the United States would be in a sorry
plight to-day. With relief agency
organized to provide financial assist.
ance in emergency cases there Is al.
ways the temptation for hard up Dor.
rowers in any community to seek
quick relief. The same phenomenon
has been observed throughout the bel.
llgerent area and reflects the pressure
upon the Government to follow the
path Of easy financial assistance on
the plea OF war emergency and the
sort Of necessitous financing which al
ways appears in a market where the
banks are finding II necessary to re-
strict their lending operations in ac-
cordance with the extraordinary Gov
eminent demands.
The cotton growers are asking for
their share Of this relief. but they will
no longer insist that the Government
shall fix minimum price for the cot
ton as was proposed few weeks ago,
when a large surplus supply appeared
in sight. The situation is full OF in
teresting possibilities and in a time
of world war almost anything may
happen. The chances are, however,
that these unusual conditions will 10
provided for without recourse to spe-
cial legislation or the unsound en-
pedients which have been repeatedly
urged upon those in authority at
Washington. A good many financial
storms may be encountered before the
war is over, since the influence OF
the great conflict is each day becom-
! ing more widespread and in many as.
poets more complicated.
Banking Concentration.
| Fresh impetus has been given 10
the movement to bring State banks
into utilization with the Federal Re
serve system by the efforts under way
to finance the Government needs and
, to bring about such a consolidation
of resources as shall make the ma
tionwide system impregnable. Much
has been accomplished in this dlrec-
ton and a most ingenious campaign
has been started in various Federal
Reserve districts to round up the out
side State institutions which have
I us far declined to become AFFILIATED
with the Federal Reserve system. The
success OF the Treasury in placing the
various issues OF certificates of indeb,-
edness with $1,000 or more banks and
trust companies shows that double
the number Of banks at present in the
Federal Reserve system have respond
ed periodically to the Government >
appeal for funds with which to tinaucD
the war OUTLAWS. Never before has !,
been possible to obtain the cooper
tion Of the $4,000 big and little bank
in one financial undertaking. and tho
probability Is that great good
come from these efforts to bring to-
gether all of the country's banking
situations in support Of worthy CO.
tcrprise. In such a union Of banl u ,
resources there Is the sort of siren.
which this nation needs at ill.,.
When IL has been called on largely Z
finance the most costly war entt.-
prise that the world has ever seen
Abandonment OF the project To form
*lOO,0Oo,O00 corporation to assist tic
public utility companies and other 90 Me-
Germs in securing financial aid throucn
the War Finance Corporation make,
1t necessary for the bankers to dcy So
some other mode OF assisting the larg
number of corporations which md it
impossible to finance their new capt II,
requirements during the period that
the Government is providing for I'M
precedent d war OUTLAWS. lnasmuCu
as the War Finance Corporation is
conrning its assistance, cAcnp, IN
emergency cases. to the rediscoUut'ng
or paper bearing satisfactory iu-
dorsement. il would be impossible for
II to grant the relief required on the
lines originally proposed. The tpG.-
cations are. however. that the s.;ut-
ton will he met as satisfactorily IN
some other way. and since the most
competent bankers in the country are
formulating relief scheme along
workable lines an early solution ~
'he problem may he looked for SGch
AID must be forthcoming in the rear
future not alone for the public utIU'y
companies but for other corporations
similarly situated with respect 20 car
NlnS for maturing indebtedness