Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-10-20
RESERVE BANKS FAVOR
SOUTH, DECLARES sEAY
Richmond Banker Tells Cotton
manufacturers No Section Has
Been So J4ibcrully Treated.
CRITICISMS ARE ANSWERED.
'oslth Carolina Association Adopts
Resolution Calling Upon Farm
ers to Hold Cotton for Price Of
10 Cents Ter Pound.

GREENVlLLE. S. c.. Oct. l9-
)espite reports. there has been no
'urtailm4nt OF the amount OF bank
;rcdit outstanding, but on the con-
rary, there has been a continuous
,xpansi ON, not only of commercial
oans aanong the banks OF the Fed
'rai reeerve system. but OF loans for
AGRICULTURAL purposes. according TO
IN address of George a. Scay, gov
;rnor .of the Richmond Federal Re-
'crvc bank. read before the South
arolana Cotton manufacturers Aa-
ocia Lion here today. The paper was
cad by Charles 4. Peplc. deputy gov
rncr or the hank. in the absence Of
Ir. Seay
NO section OF the country has been
70 libcrally treated In tho matter of
- 1cndcd credits as has been the
'uth." AIr. pcpic said and ye. In
Rat section Of the country we hear
no loudest complaints and the most
complaints. Perhaps she tx suffer-
M; most at the moment. Whatever
complaint she may have. she canno.
'hmplain OF curtailment Of credit, and
'lnc has. in fact. been treated more
10 orally than any other part OF the
IL
fnm other parts to lend her"
EIpanHIOn of nnnk Credit.
.Mr. Pcplc. representing Governor
aS' quoted freely from a statement
cchtiy prepared by Governor Seay.
os"cring vigorously and in detail
TRENT criticisms or the Federal re-
'T'e BANKS. The criticisms DIS
used and the answers given were
mus summarized in Mr.. Peple's ad
U ess today:
first, mat there has been such a
'iarkcd curth!lmcnt OF bank credit In
'cceht months as to amount to "A cam
paish In restraint OF trade. The
ruin rs, however. that there has been
IN almost reckless expansion I'm bank
ircdlt during this period. and tina,
'hc volume Of both agricultural and
commercial Ioans has continuously In
'rcased Moreover. on June 80 last
ne FUNDS OF the member banks
oancd and invested. were actually
1900. 100000 more than their own
resources available for such PURPOSES
~o things made this great expan.
SION possible, namely. the conccn,ra.
ION OF reserves In and the not. is
Jung power OF the Federal reserve
xinks.
system Fnvorx south.
Second. II is charged that IN.
>outh particulariy has suffered at IN,
lands OF the Federal reserve hanks
~ inc contrary. no section OF IN.
ouniry has been dealt with as III
orally IS has the South;L the thre,
escrvc banks OF Richmond. Atlant:
ana Dallas have been able. By cx
,austinE their own resources an,
borrowing more than 500. 900. 90,
rom other reserve banks, to len,
heir members almost three time
netr reserve deposits. To sneak spe
:iiically OF South Carolina, the mem
Der banks In this State have Dor
owed cor iinuously for the past M
cen months twice their cuu!tabli
share from the Federal reserve banl
II Richmond
Third. II is said the Federal re
iervc BOARD has sought to dominat,
he banks OF the country. In answer
emphasize that six of the nine di
-cctors OF each Federal reserve Oanl
are elected by member banks and ar,
representatives. successful active mei
n affairs. constantly in in,imat.
ouch with the business condition!
" the district: that the Federal re
serve board has very little direc