The Washington times., 1920-10-15
FARM CREDIT /
ruling TODAY
Reserve Bankers TO Give Policy
Statement--Pianters Fear
Adverse Report.


A new statement of the Govern
ments financial, policy is expected
from the Kederal Reserve Board late
today. Following the demands Of va
rious groups of farmers and produc-
ers for further extensions OF credit
by banks.
BANKERS IN CONFERENCE
Governors of Federal Reserve banks
were In 'cenference with members Of
the reserye board. in a final session,
Secretary of the Treasury Houston
and Comptroller of ue- Currency
Williams. attending as exofficio mem
bers of the board. ..
The farmers, having completed
their summing -np arguments and pre-
sented them formally TO the board.
were anxiously waiting the decision
but by no means hopeful that their
urgent pleas Will be granted.
Although no iDtimation has come
from the board of what steps 1t Will
take to further ease the credit situa.
tioh for the producing elements, the
feeling was, strong that the board
will not maize radical departure
from it's established policy.
Nor Is 1t, expected that the board
will fell justified in going, so far as
to Indicate to member banks of the
Federal Reserve system that the com
mercial paper OF Agricultural interests
be given preference over other paper
of so-cafled essential industries.
REDIsCOUNT FARM PAPER.
The conference, in executive session
today carefully weighed the various
.rynmant. a,d racorp IN a nd at;ona suh
mitted by the farmers. Among the
farmers. recommendations were: Re-
creation Of the War Finance Corpora
tion,1to ard in financing export ship
mshts, especially of cotton;a request
thatsthe board define orderly market
ing to mean that the sale of farm
products does not contemplate sell
ing-at below production cost; that
the board instruct member banks to
re-discountN certificates on cotton and
other farm products when stored and
properly insured; that the rate Of re-
discount of certain kinds of agri-
cultural paper be made uniform.
Action fixing more definitely the
status of certain kinds of farm
paper at tho banks, and thus facil-
itating the efforts OF farmers to OBJ
tain larger. Accommodations, was a
TO have devoted much study.
The question of more uniform dis
count rates also is being threshed out,
in view OF its possible advantages to
the farmers and the effect 1T would
haveTan stimulating production. But
the. .SboaFd's policy upon these and
other questions will not be known
untK its announcement has been
drafted and made public.
TREASURY AGAINST MOVE.
The attitude of both Governor
Harding OF Sthe Board and Secretary
Of the Treasury Houston toward the
various groups appear ing before them
in eleventh hour appeals for aid was
believed to indicate that the Federal
Reserve Board will decide that its
functions, limited by laN would
render it.impossble to set up certain
banking privileges for an agricultural
class, as distinguished from all other
classes of essential producing or
industrial groups. 90
These higher officials expressed
themselves in sympathy with the aims
of the farmers, but have expressed
themselves powerless, under the law,
to exceed certain limits
And it appeared plain today, in the
preliminary sessions in which the is
y
angle, that the Federal Reserve Board.
regardless OF all the pressure exerted
upon it, Is opposed to any action that
will further initiate the nations cur
rency to dangerous limits, or that
contemplates calling upon the people
for loans to aid particular group or
groups out Of business diffilucty that
is considered only temporary.
1t was not considered improbable
hn Ead raj pna in
it's forthcoming statement, may indi-
cate that member. banks should give
closer study to the needs Of their
home industries, in order to meet the
pending problems.
This view is held in some quarters
because Of the practice among bank
ers in some sections of 1oaning the
deposit funds OF their patrons at ex-
cessive rates OF interest in New York
or other money centers and neglect
ing to care for the needs of home in
dustries