The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1920-09-24

Harding of the Feieral Reserve Board
When P. C. Dings, president of the
Guaranty State Bank of this city
was in New York recently with rep
resentatives of the American Co''oi
Association on a mission with '"'
Federal Reserve Board, Governor
Harding issued the following state
ment for the press of the country
More than fifty representatives Oh
a.. Arerican Cotton Association
headed by President j. ). WANNA
orar conferred with the Federal
poord relative to the cotton SITUATION
Ex-Governor Manning OF SCUM
Carolina presented the case lot III.
Cotton Association, pointing out 'i'a'
,,o association while speaking prirnar
ny Of cotton really INCLUDED in It's
n,,sbes all staple agricultural pro
a,cts He emphasized that the Coz
ton Association was not asking loi
ANYTHING. but had come rather io'
,ha nurnose Of getting a better uh-
aorstanding of the boards policy WIN
resnect to credits for the oruei'S
marketing Of agricultural produc's,
Governor Harding, responding lo'
.,o Board emphasized the thorough
ageement of the Board with 'he al"
aa,oor Cotton Association in the oe-
sire for the gradual, orderly marhe'
ing of staple agricultural produe's'
especially cotton.
Governor Harding with more Una"
ordinary emphasis drew at'en'io'
tho fact that there seemed 10 De an
o.a,n,zed effort to mislead the pup'ic
as to the policy Of the Federa' '
.erve Board touching the mater y, -
49, contraction of credits to essentia'
,asrs,r,es including especially all as-
r,cuftural products While s'N.s
that the Board had undertaken I" .e
arca credits for non-essential ana ~
saoo,,,ot,ve purposes, he pointed out
that II was not now the poiicy Vi WV
poord nor had It been, nor would II
a. rastrict credits for the ASSIST
orce Of essential industries ana es
necially agriculture. He produceu ..e
.o show that from September ISL
,o,o n september 1st, 1920 'nere
,oa hAen q larger extension oi
a.. For essential purposes thah d.
on,, norios in the history Of the coun-
trv except the period Of 1sl'-isio' s
ond that since the end of August 'i'''
-, occount of crop-moving ue-
ona Federal Reserve note issues
have been increased at rate Oh iro'''
,,,rtv TO forty millions of dollars
woot and that bills discounted III
vault of the Federal Reserve oanAs .'
ia ,rcreased at a rate Of about fifty
millions of dollars n week.
Governor Harding stated that what
ever liquidation had gone on throush
tbe Federal Reserve system receh''s
,os for the very purpose Of putting
the member banks in a positioh W
take care Of this very situation which
ne foresaw more than n year ago
The impression was distinctly given
that the Boards policy was sympathe'-
,c to an orderly movement OF 'he
crons and that such movement
was necessity dependent to large
extent up on the credit situation
Among other suggestions Governor
Harding spoke of the need for the
of export corporations under
the terms Of the Edge Act and drew
attention to the fact that under the
terms Of this Act the capital STOCK
Of such corporations might be SUD-
scribed in cotton. He referred to re-
cent conversations with several Wash
ngton representatives Of Central Eu-
ropean countries. who expressed the
desire Of a need for low-grade cot
ION. but who pointed out that these
countries could not go into the
market unless credits could be ex-
tended to their manufacturers for
periods of from six to nine months.
These manufacturers would give as
collateral liens upon the cotton in pro-
,ess of manufacture backed by the
Joint endorsement Of n consortium OF
banks and further guaranteed by the
governments themselves. Governor
Harding endorsed strongly the efforts
If the American Cotton Association TO
organize such export corporations and
the belief that in their
operations n way for such a distri-
oution Of cotton az would bring the
and producer thereof in
iirect contact with each other.
At the conclusion OF Governor Hard
ng's statement President wannamak-