Arizona republican., 1920-10-14
FEDERAL RESERVE
 BOARD UNABLE TO REMEDY FARMERS CREDIT TROUBLES
Governor Harding Tells Agricultural Delegation Board Is Preparing New Policy of Credits
SAYS PRESENT LAWS
 LIMIT BOARDS POWER
Denies That Board Issued Instructions Which Re- suited In Curtailing Of Credit to Farmers
TRepubIIean A. 2. Leased WIrel

lnCpOptiCdN A v. GedSeQ WlTel
 WASHINGTON, Oct. 13-The agri- cultural conference in session here de- cided tonight to request a hearing be- fore the full membership of the fed eral reserve board and it's agents, as- sembled for the regular fall policy con- ference, before that policy shall be formulated by the board insofar as it effects agricultural credits.
 The federal reserve board is prepar- ing to make a new statement of policy covering all phases of the credit sit uation, Governor Harding told repre- sentatives of agricultural interests, in convention here who appealed to him today for relief from stringent" credit conditions.
 The statement, Governor Harding said. probably would be made public Saturday after the conclusion of the fall conference of federal reserve agents and reserve bank governors here.
 A committee from the reserve board listened for three hours to accounts of conditions which the agricultural del- egation said threatened the life of the nation through a reduction of the food production. Difficulties of the farmers were laid almost wholly to inability to obtain financial assistance. It was as- serted that banks of the reserve sys- tenn were not supplying needed funds and that many local bankers claimed to be acting under instructions from the federal reserve board.
 Governor Harding denied that the board had issued instructions which would result in curtailing the farmers credit. The board and officials of the reserve banks were in sympathy with the plight of the farmers he said. and were encouraging loans to aid them. but the board was without authority to instruct member banks as to loana they could or could not make.
 Acts Defined by Law
 In the first place." the governor said, T can see no practical value in your visit to the board. Our acts are defined by law. Your conference here with us has resulted only in your re- telling what we already know. The board knows your trials and difficulties and is in entire sympathy with you. D
 Meanwhile the delegates considered whether they should press their re. quest for conference with President Wilson and his cabinet.
 Governor Harding told the delegation that German interests had informed him they were in the market for 2.OOO. OOO bales of American cotton. A Ger man commercial agent who called on | ter man manufacturers were eager to huy but the cotton producers. must accept paper maturing in nine months in pay. ment. The governor suggested to tho cotton interests represented that they make use of the German market after the delegates had said there was nc domestic market.
 Spokesmen for the cotton men sait also that confidence of banking inter ests in cotton appeared to have beer l shaken.
 They offered no explanation of it but complained that it was defeatin. them in their efforts to borrow. "I would suggest that the burning O gins and other destructive work whicl has been going on in certain section of the South is not calculated to restor confidence" Governor Harding said You cannot blame. a banker for no wanting to make a loan on a com modity which might be destroyed, cal your
 Want More Currency
 Appeals were made to the board fo the issuance of more currency Speakers said the belief existed tha it would relieve the financial "strin gency."
 .l J. S. Wannamaker, president of tn American Cotton association, asked tn board whether there was not some wa in which this could be done. He sai he was a banker and that he believe an increase in the federal reserve not issue would remedy the situation.
 Governor Harding replied that tn note issue was now nearly $1.000, 900,
 GOO more than a year ago and tha charges that deflation was responsibl . for the cituation confronting producer were without foundation. The amour of note issue was governed by law, h said, and added that if the farmer ] would have the country on a "pape
 basis" they should ask congress
 change the laws.
 8 But the federal reserve board wi l be no party to any such scheme" h l continued. 'Tt is economically wron and you would all be sorry for pro y posing the change, once it had bee I made"
 Senators Smith of South Carolin and Smith of Georgia voiced approv;
 of the governors attitude.