The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-10-17
PRICE CHANGES
ARE INEVITABLE
Board Denied That Farmers
Have Been Disseminated
Against By Banks.
BARRETT SCOUTS REPLY
Head of National Farmers Un-
ion Says Boards Statement
= Offers No Help.
BARRETT SCOUTS REPLY
tpy Associated PRESS,

mas Deem steadily dV8ildDl64tO IIl6 sue
.cessive seasonal requirements Of agri-
culture" according TO a formal state
ment issued tonight by the federal
reserve board, designed as reply to
agricultural organizations, which ap
pealed to the government this week
for a further extension OF agricultural
credit
Recent disturbances in price and de-
mand which have been manifest in ag-
ricultural markets are inevitable and
unavoidable consequences Of the eco
nomic arrangements occasioned by the
world war; the boards statement
said. 1t added. however. that the gra-
dual and regular movement of the crops
from producers to consumers was to
be expected.
I'm view OF the representations which
have recently been made to the board
as to the unavailability Of credit in
agricultural sections" the statement
said. the board required information
concerning credit conditions through
out the country from the chairman
and governors OF federal reserve banks
at their usual autumn conference held
here this week.
"The board Is advised that credit
has been steadily available for the
successive seasonal requirements of
agriculture. as we'll as fer the needs
OF commerce and industry. and that
there is no ground for expecting that
its availability for these purposes will
not continue. The present improved
credit situation Is due in part to the
timely steps taken last spring follow
ing conferences between the board and
governors ana directors Of federal re-
serve banks to provide credit for crop
moving requirements, and In part to
the subsequent Improvement In trans
portation reported from all districts
except in few localities.
Between January and October
OF the present year about 800 leading
member banks from all sections of the
country, which report their condition
to the board weekly and which repre-
sent approximately 10 percent of mem
ber bank resources. have increased
their loans for agricultural, industrial
and commercial purposes by AN amount
exceeding Si.S00,0O0, 600. This great in
crease In the credit extended to their
customers has in the main been made
possible by the accommodation ex
tended member banks by the federal
reserve banks.
During the same period, the 10 fed |
eral reserve banks have increased their
holdings Of agricultural and CONNER
rlal paper by more than S500,000000l
and from January % to October 4, |
1920, increased their issues of federal
reserve notes by S460.000.000. At the
same time federal reserve banks hav-
Ing surplus funds have extended ac-1
rommodation to federal reserve banks |
n q
by means of discounts, aggregating on
october 4. over 1925. 5.000.0 900.
"The disturbances in price and de-
mand which have frequently manifest /
ed themselves In markets for various /
agricultural and other commodities not /
only in the United States. but in other /
countries as well, are inevitable and
Unavoidable consequences OF the eco
nomic arrangements occasioned by
Inc world war. The United States con-
Iinue to have heavy volume of ex-
ports although foreign demand for
PERTAIN agricultural staples has some
what decreased. But the chief market /
Tor our raw and manufactured pro-
ducts Is at home. and our present huge !
crops OF immense value may be ex-
pscted gradually and in regular course
10 move from producers to consumers.
The recent census. reckoning our
population at i05.0o0.000 emphasizes
anew our own capacity as consumers
irrespective OF the demands Of other
countries"
After consideration Of the statement
issued by the federal reserve board
lhe Joint committee Of the recent ag-
hcultural conference. left here to deal
with the matter. submitted the fol-
lowing report to Chairman Chas. 5.
Barrett, OF the conference:
THE statement issued tonight by
the federal reserve board not only does
not attempt to meet the situation and
Nill not alter conditions but is even
souched in terms to support the price
aeclines. The boards declaration that
present disturbances are inevitable is
lndefensible In this crisis. We ad-
rise that the next meeting of the full
conference be held here October 2s to
complete plans already discussed in
executive session"
Mr.. Barrett. who is president of the
National Farmers Union. also issued
statement attacking the reserve
boards statement as quibbling in es-
,ence and offering no relief whatever
ior agriculture from the present op-
sressive financial condition. He said:
sThe board is either totally and mex