The Birmingham age-herald., 1920-10-16
COMMISSION MEN ASK SUSPENSION
 OF REGULATIONS
Proposed Plan Too Intricate for Definite Reply, Declares Governor of Federal
 Reserve Board
By Associated Press

Washington, October 15,-Represen- tatfves of southern cotton commission
 merchants appealed to the federal re- serve board today for suspension of regulations defining rediscountable fi-
 rancial paper in another effort to gain 1 relief from the credit "stringency' 1 which cotton interests declare has struck the whole industry.
 Propositions laid before the board however, were declared by Governor Harding to be so intricate and to in- yolve such serious consideration that the delegation, numbering thirty or more, was given no definite reply. Five southern senators headed the commit tee, which was made up entirely of l cotton factors or commission men and bankers
 Board members indicated they feared Inc disastrous" results should , the restrictions about which the cotton men complained be lifted. Suspension Of the regulations even temporariIy it was said, would mean a flooding of reserve banks with rediscounts sought on paper classified as similar to the Obligations which the cotton men de sired to have accepted.
 SPECIFIC REQUESTS
 Specifically the delegation aske ed that the reserve banks be permitted to re- discount paper on which the commits sion men had made advances to the cotton planter. Governor Harding de- clared however, this form of paper even though secured by mortgage on the planters crop, did not come with- in meaning of the federal reserve act which defined the class of obliga- tons which might be rediscounted. He said the loans represented an advance on the commission man himself not ] heing engaged in either agricultural or industrial productions as required in | order that his note might be reds- counted
 Senator Smith of Georgia told the | board that probably half of the en- | tire years crop of cotton was tied up l under such paper He urged some | sort of help, even if it is only a tenn pcrary suspension of the regulations l until Congress can amend the law"
 He believed the change would be | readily and easily made at the next, 1 session"
 The board was criticized by several | of the senators, who declared it had l not construed the law as itsl framers , piled that the board had interpreted 1 the provisions of the act along what 1 il believed to be sound banking lines. CONSIDER QUESTIONS TO-DAY
 The conference of federal reserve | agents and reserve bank governors with the board was not concluded to- night as had been expected and there were indications that the questions in vclved in the proposal of the cotton representatives would be given atten- ton tomorrow.
 Governor Harding announced on Wednesday that the board was prepar- ing a new statement of credit policy 3s a result of frequent appeals for financial aid from agricultural inter ests. He expected tonight to make public the boards attitude on these questions tomorrow.
 Meanwhile committee selected from | the agricultural representatives which l have been meeting here was awaiting tfe boards next move. This commit tee was charged with determining a 1 course of action for the more than thirty farmers organizations whose representatives had laid their griev- aEces before various governmental . agencies.
 Two courses were under considera- ton today in event the boards state ment of policy does not provide the re- linf sought One was the calling of general conference of all agricultural interests O meet in Washington with l the converting of the next session of Congress. and the other was to ask the support of the American Bankers As sociation. which meets in annual con- vention here next week.