The Birmingham age-herald., 1920-09-18
FEDERAL RESERVE TALKS OF CREDITS
 WITH COTTON MEN
Thompson Says Attitude of Head of Bank System Is In Line With Modern Crop
 Movement Financing

Joseph o. Thompson, the Alabama representative on the delegation of more than fifty representatives of the American Cotton Association, headed by President J. B. Wannamaker, who conferred with the federal board rela- live to the cotton situation, on his return to Alabama, said:
 Ex-Governor Manning of South Carolina presented the case for the the association while speaking pri- Tnarily of cotton, really included in it's wishes ali staple agricultural prod ucts. He. emphasized that the Cotton Association was not asking for any thing, but had come rather for the pur- pose of getting a better understanding of the boards policy with respect to credits for the orderly mark citing of agricultural products.
 "Governcr Harding, responding for the board, emphasized the thorough agreement of the board with the Amer ican Cotte n Association in the desire for the gradual, orderly marketing ot staple agricultural products, especially cotton
 Governor Harding with more than ordinary emphasis, urew attention to the fact that there seemed to be an organized effort to mislead the public as to the policy of the federal reserve board touching the matter of the con ktfGction Of credits tn essential indus tries including especially all agricul- turai products. While stating that the board had undertaken to reduce cred
 ,s.,I I 1,A . ] urposes, he pointed out that it Was lot now t~> po.cy of the board, nor lad it been, nor would it be. to re- strict crenfts .Jr .Ie assistance or es- sential iniust. .ls And especially as itdlture. lie produced figures 1s. shV~ thai from .e,lv.uoer l. 1919, tO september l, 1920, lnere had been .. larger extension of credits for esseg- tal purposes than at any period in the history of the country, except tn. eriod Of l9l7-191S, and that since tar cnd of August this year on account O. crop moving demand, federal reserve Tote issues have been increased at Il late of from thirty to forty millon collars a week, and that bills discoun. cd in vault of the federal reserve bans had increased at rate Of about flI-Y million dollars a week.
 Governor Harding stated tha. whatever liquidation had gone on through the federal reserve system recently was for the very purpose oi putting the member banks in posi l. ton to take care of this very situation which he foresaw more than d year ago. The impression was distinctly given that the boards policy was sym pathetic and that such movemen was a necessity dependent to a large extent upon the credit situation.
 Among other suggestions Governor 1s '. r.Nv l.- Fr.N nation of export corporations uneef inc terms. of the Edge act, anl drcN attention to the fact that under the terms of this act the capital sock oi .aeh operations might De subscribe ill cotton. He referred to recent con versatiUns With seveiai Wash .ngtoh representatives of cen,ral 1uropean countries, who expressed the desire Q. a need for low grade cotton, but Wht pointed out that these countries couid not go in,o the market unless credits could be extended to their manutac- turers for periods of from six to nine months lncss' manufacturers woul1 give as 4u.lateral liens upon the cotton in process Of manufacture backed by the joint indorsement of consortlum of banks anI further guaranteed by the goVernment themselves. Governo' Harding indorsed strongly the efforts of the merican Cotton Association lo organize such export corporations and expressed the belief that in their op- crat;ons way for such distribu- tion of cotton as would bring the man ufacturer and producer thereof in d. rect contact with each other.
 At the conclusion of Governor Hard ine's statement President Wanna maker and all other delegates ex- pressed their complete satisfaction herewith, and the belief that such | reassuring statement as had been made would meet a quick response through out the country in more optimistic view of the future of all enterprises and especially of those engaged in the production Of agricultural necessities.