Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-16
UNWILLING TO LEND
MONEY TO SUSTAIN
HIGH PRICE LEVELS
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HUH PhICE LEVELS
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a government agency which woul'
Investigate the paper they offer,
said Senator Smith.
Mr.. Wannamaker failed to stat,
whether he approved of this govern
ment's borrowing money to loan Ger
many to buy American cotton whel
pressed for an answer by Secretary
Houston: Houston said he had work
cies which would make marketing O.
crops easier and more profitable t,
the farmer.
Farm products now are movin.
abroad at quick rate, Mr.. Houston
snS2Sntd by qq4oting export figures
ment which showed, he said, tina
during the first eight months Of thi.
SLIPS, 900. '''o>
Failing to hear from the presiden
regarding their request for a specia
session OF the cabinet to receive thei
complaints, following an unsatis
factory conference with Governor W
= q. Harding, of the federal reserve
board, the delegates to the cotto1
conference in session here, were in
an unsettled and indignant frame OF
I'VE shall insist that the secre
tary OF the treasury desist from
making pubic statements that prices
are falling" said Charles IS. Bar.
rett, president of the national board
Of thirty farm organizations which
convened the conference here.
Farmers are not asking snecia'
privileges. We're merely tsking thai
the government through the treas
ury or the federal reserve bank make
II possible for us to obtain loans
from banks vitality needed. Bankers
rear to loan. money on crops because
OF the danger Of falling prices. This
Is state of mind resulting from
statements and predictions w gov.
eminent officials that prices are fall.
ing"
The farm officials today also plan.
ned to confer with Secretary of Ag.
r1culture Meredith.
Mr.. Barrett said it is likely a per.
manent committee will be left here
when the national conference ad.
Journs, to watch the economic situa.
zion, and work for the agricultural
interests.
The delegates hoped as they met
that they would be granted g. hear.
ing before the full membership OF
the federal reserve board and its
"Soi|S' aoSeHlpleu IoF the DOdrQ
regular fall policy conference They
desired to present their arguments
before the board formulates it's poll
cy in so far as it affects CREDITS to
farmers.
An orderly process Of marketing"
was practical ultimatum delivere:
to the farmers conference late We'd
nesday afternoon by Governor w. p
e. Harding, of the federal reserve
score members called to demand
emergency financial assistance for
the agricultural interests of the
country.
This visit of the so-calIed cotton
conference commimttee, appointed by
q conference representing not only
cotton but also wheat, tobacco and
other agricultural industries. called
at the treasury department after the
adoption of resolutions denunciat tory
OF the reserve board and the treasnry
aepartment for restriction : credit:
On farm products. PREVIOUSLY, the
resolutions calling for q red1,ctjnSS
~ cotton production next year and
demanding federal assistance in the
endeaVor of wheat farmers to hold
'ne1r crops for SO a bushel price
,Meetlng, Governor Harding at
co TrGEnn c tne e,o sense of the farmers
n
ator r: ID. Smith, of South Carolina
who yielded the floor abruptly whar
Governor Harding Informed him that
ne would be unable to give any def.
mite answer, before next SATURDAY.
tiona IpiF F| realscount rates and addi.
statement Promised Saturday
i, Governor Harding explained that
tnere was now meeting in Washing
Ion Ion members of the federal reserve
ooafd and governors of the reserve
system TO consider the general ques.
ton Ut credits, covering agriculture
and other industries. and it would be
presumptuous for him to forecas ST
what this conference would do re-
garding rediscount rates and other
I n1it is he he promised a statement
I'm that event." said Senator
Smith, at is useless of me to con
tlnue my argument here today"
Governor Harding said that Sec
ton IL (eleven) of the reserve act
makes certain stipulations regard
ing reserve. requirements and that
most banks in the cotton section were
below these reserves. If these re-
serves were exceeded, he said, under
the law there must be increased rat
of discount. and Cleveland, Boston
and other sections must furnish the
money for such rediscount.
Senator Smith observed that John
Shelton Williams, comptroller of the
currency, had recently reported an
increase of currency by $2,500,000,-
000
"well, go to him and find out
where this is" said Governor Hard
ing, with considerable asperity, 81
have never made any such state
ment."
Senator Smith asked if the federal
reserve board could not lower, the
fo ~ Gu
might be re-established in agricul-
ture districts, and if the extra rate
might not be waived under the law
Members of the board and Of
ficers of reserve banks are now in
conference" said Governor Harding
day. We hope to announce on Sat
urday a definite policy with regard
to this entire question and covering
the remainder of the year. am au-
regarding rediscount rates or otheI
matters"
Following this, Governor Harding
made an analytical statement OF imam
cial conditions in Europe and Amer
lea, and addressing the cotton, wheat
and other agricultural products men
present, he concluded with this OBJ
serVation.
Hafding Advises "order1y Mar
keting"
All this talk about ruin IN the
agricultural districts is not helping
the situation. / know that crops
were produced at great expense and
probably will have to be sold at a
loss. The federal reserve board has
not five cents to loan and the same
applies to reserve banks. The sit
uation, primarily, is up to the mem
Der. bankers. l admit that it is. not
good banking if a member bank is
unable to loan on the basis of the
principal industry in it's community.
How can you say that?", inter
rupted Senator, of South Carolina
when statement after statement