New-York tribune., 1920-10-17
Reserve Board
DeniesRefusine
Farmers Credit
"Steadily Available and No
Ground to Expect 1t Will
Not Continue" Declares
Reply to Farm Societies
Price Upset Inevitable
BOO Banks Reported TO
Have Increased Loans
Half Billion i'm 9 Months

WASHINGTON, Oct. 16. - Bank
credit "has been steadily available for
the successive seasonal requirements
Of agriculture" according to a formal
statement issued tonight by the Fed
eral Reserve Board, designed as re-
ply to agricultural organizations which
appealed to the government this week
for further extension of agricultural
credit It follows:
"1n view of the representations which
have recently been made to the board
es to the unavailability of credit in
agricultural sections, The board re-
buested information concerning credit
conditions throughout the country from
the chairmen and governors of Federal
Reserve banks at their usual autumn
conference here this week.
The board is advised that credit has
been steadily available for the success
siva seasonal requirements Of agrl-
culture, as we'll as for the needs Of
commerce and industry, and that there
is no ground for expecting that its
availability for these purposes viii not
continue. The present improved credit
situation is due in part to the timely
steps taken last spring, after con-
ferences between the board and gov
ernors and directors Of Federal Reserve
hanks. to provide credit for crop mov~
ing requirements, and IN part to the
SUBSEQUENT Improvement in transporta-
rion rcported from all districts, except
in few localities.
"Between January and October /
Of the present year about SOU lead
ing member banks from all sections
OF the country, which report their
condition TO the board weekly and
which represent approximately 70 per
cen Of member bank resources, have
increased their loans for agricultural,
industrial and commercial purposes
hv an amount c.ceedlng Sl,S0C, 100000.
This great increase in the credit eX-
tended to their customers has in the
main been made possible by the ac
ccmmc dation extended member banks
by the Federal Reserve banks.
During the same period, the twelve
federal Res We Banks have increased
their holdings Of agricultural and
commercial paper by more than $780,
600, 600, and from January 23 to
October J.. 1920. increased their is
sues Of Federal reserve notes by over
$3.50, 100000. At the same time
Federal Reserve banks having sur
plus funds have extended accommo-
dation to Federal Reserve banks in
agricultural and livestock districts by
means of discounts. aggregating on
October over S225 100000
The disturbances in price and de
mand, which have recently manifested
themselves in markets for various
agricultural and other commodities
not only in the United States, but in
other countries as we'll, are inevitable
and unavoidable consequences of the
economic arrangements occasioned by
thc World War. The United States
continue to have d heavy volume Of
exports, although foreign demand for
certain agricultural staples has some
what decreased.
But the chief market for our raw
and manufactured products is at
home, and our present huge crops Of
immense value may be expected grad
ually and in regular course to move
from producers to consumers. The
recent census, reckoning our popula-
tion at 105 100000, emphasizes anew
our own capacity as consumers, ir-
respective of the demands of other
countries y