Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-17
CREDIT AVAILABLE
.F0RAGR|CU[TURE,
SAYS BANK BOARD
Federal Reserve Statement
Points to Expectation of
Crop Movement.

Bank credit has been steadily
available for the successive seasonal
requirements of agriculture" accord
ing to formal statement issued last
night by the Federal Reserve Board.
which appealed to the government
this week for a further extension Of
agricultural credit.
Recent disturbances in price and
demand. which have been manifest In
agricultural markets, are Inevitable
and unavoidable consequences Of the
economic arrangements occasioned by
the world war" the boards statement
said. 1t added. however. that the
gradual and regular movement OF the
crops from producers 10 consumers
was to be expected.
I'm view of the representations
which have recently been made to the
board as to the unavatlabtllty or
credit in agricultural sections, the
statement said. the board requested
tions throughout the country from
the chairmen and governors OF fed
eral reserve banks at their usual au-
tumn conference here this week.
Credit steadily Available.
sDrhe board advised that credit has
been steadily available for the sue
cessive seasonal requirements OF ag-
riculture, as well as for the needs OF
commerce and industry, and that there
is no ground for expecting that its
availability for these purposes WILL
not continue.
..rhe present improved credit situa-
ton is due in part to the timely steps
taken last spring following CONFER
ences between the board and govern
ors and directors of federal reserve
banks to provide credit for crop-mov-
ing requirements, and In part to the
subsequent Improvement in transport
tation reported from all districts ex-
cept in few localities.
"Between January ana OCTOBER
If the present year about 500 leading
member banks from all sections Of the
country which report their condition
to the board weekly and which rep
resent approximately 10 per cent OF
member bank resources nave fncreas-
ed their loans for agricultural, in
dustrial and commercial purposes by
an amount exceeding $1.s0o.000, 900.
This great increase In the credit ex-
tended to their customers has In the
main been made possible by the &C
commodation extended memo banks
by the federal reserve banks.
Increased Holdings OF Paper.
During the same period the twelve
federal FeScFto
their holdings of agricultural and
commercial paper by more than
SIS 0O, 900, 900, and from January 23 to
october i, 1920. increased their is
sues of federal reserve notes by over
$3.50 900, 900 At the same time, fed
eral reserve banks having surplus
funds have extended accommodation
to federal reserve banks In agrtcul-
turaI and livestock districts by means
Of discounts aggregating on october
l. over 225.000,00O.
1.-The disturbances In price ana de-
mand which have recently manifest
ed themselves in markets for vart-
GUS AGRICULTURAL and other commodi-
ties, not only in the United states.
| but in other countries as well, are
inevitable and unavoidable conse-
ouences of the economic derange-
ments occasioned by the world war.
'The United States continues TO
have a heavy volume OF EXPORTS al
though foreign demand Tor certain
| Agricultural staples has somewhat
decreased. But the chief market for
orr raw and manufactured products
is at home, and our present huge
CROPS of imme nse value may be ex-
pected gradually and in regular
| course to move from producers to
consumers. The recent census.
reckoning our population at 100000
| 900, emphasizes anew our own ca
pacity as consumers irrespective OF
the demands Of other countries.