The Monmouth inquirer., 1920-10-21
CREDITS ON CROPS.
PLEDGED FARMERS.
Financial Aid viii Be Given Cot
ton Planters and Wheat Grow
ers to Avert Disaster.
HARDlNe's PLEA TO SOUTH.
Put End to Gin Burning-Terrori
Cannot Restore Business Stability,
He says-Predicts Normal Prices.
Wants Orderly Marketing.

Washington. Financial assistance in
handling the autumn crops will be ex-
tended to the farmers of the country
by the Federal Reserve Boarl through
arrangements row being perfected
with Its member banks, following a
three-hour conference between Gov
ernor Harding and group of farmers.
Announcement formally of the Re-
serve Boards plan win go far toward
restoring confidence among the agri-
cultural elements oe the country. The
members of the board, the heads of
regional banks md several bank pres
idents and directors are holding day
and night conferences this week to
work out the de- lis of the big financ-
Ing operation.
Through it banks will he enabled
TO furnish credits alike to the wheat
growers of the West and the cotton
planters # the South. Both claim
that they face financial ruin by being
cauhgt In an abnormalIy low market
for raw products during the harvest
season.
TIE contemplated action of the Re-
serve Board is not change In policy,
but will follow lines adopted last year
and in previous years. Federal Reserve
Bank notes on which money win be is
sued are to be authorized in sufficient
quantity, it is understood, for banks
that wish lend money to farmers to
do SO.
Governor Harding told the farmers
from the South that night riding and
gin burning will not restore business
confidence or Increase the price of cot
ton. He advised them not to get ex-
cited because prices have dropped so
sharply, but to adopt measures that
will restore confidence He denied the
board had ever attempted to influence
the price of necessities and predicted
a speedy return to normal.
The tendency to lower prices, he
said, was due to a worldwide move
ment. ut started in the South" he
added, with the overall movement,
which originated in Tampa. People
took up the cry and protested against
the cost of clothing. The overall move
ment died out, but the spirit of that
movement kept up"
He pointed out that 1t had gone on
through various commodities, such as
shoes, clothing and food, until there
has been a general return to lower
levels He said the pendulum which
swung so far in the direction of higher
prices has swung back the other way
"Soon," Mr.. Harding said, think it
will move out on a straight line.
"My personal belief is that produc-
ers are unduly alarmed. agree with
the staement that everything possible
should be done to restore confidence
Do you think it IS going to restore con-
ddence to be reading Of night riding,
gin burnIngs and keeping stores clos
ed? These things do not tend to re-
store confidence. People co not like
to put money where that kind Of thing
Is going on.
"All this talk about ruin and bank
ruptcy of the South does not help the
commercial value OF cotton. The Fed
erai Reserve Board is in favor of
orderly marketing of crops. We do
not believe there is orderly marketing
if all the buyers stay off the markets
or If all the growers stay off the mar
kets. Sell little cotton. Keep things
moving enough to pay off some of the
debts"
Governor Harding said agents Of
Germany, Italy, Czecho-Slovakia and
other countries want to buy cotton in
America if they can get the credit. He
suggested the formation of an associa-
tion to furnish cotton credits to those
countries.
Growers of wheat, cotton, corn and
live stock, were represented at the
second days conference of farmers
who were seeking better methods for
agricultural products.
A resolution was adopted looking to
lower acreage of cotton.