Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-10-14
ARM LOAN CRISIS
FORCES AN APPEAL
RESERVE BOARD
agricultural Conference
Asks Hearing Before Full
Membership.
ARDING SAYS NEW CREDIT
POLICY BEING FORMULATED
Denies Instructions Have Been
Issued Curtailing Finan-
cial Assistance
tAY NOT VISIT PRESIDENT
|'ovcrnor OF Board Dcpiorcs Burn
ing OF Cotton Gins In
South.
'AY NOT VISIT president
'ovcrnor OF Board Dcplorcs Burn
ing OF Cotton Gins In
South.

WASHINGTON. Oct. i3.-Thc asri-
uitural conference In session here
ecidcd tonight TO request a hearing
eiorc the full membership OF the
cderil Reserve Board and It's agents.
sscmbicd for the regular fail po:icy.
the conference. before that policy
hall be formulated by the board. in
'taT as X affects agricultural credits.
The resolution was adopted after a
eicgation from the agricultural in
rests represented had spent three
ours In conference with Governor
Iarding. OF the reserve board. The
invention named Senator's IIoke
,ni,h. OF Georgia: T. u. Smith. of
outh Carolina. and Over,nan. OF
orth Carolina. TO convey It's request
! the board in writing tomorrow.
Credit Policy Being Formulated.
| During the conference today Gov
Fnor Harding said the Federal Re-
ervc Banks announcement OF credit
oiicF was In process OF formulation
nd probably would be ready for
ubiica,ion by Saturday. The rcso-
it!on adopted by the convention re-
ucs,s further hearing in order that
emands OF tho various agricultural
itcrcsts may be fully presented be-
prc the bankers arrive at any con-
'Jslon.
At the conference difficulties Of the
irmers wcrn laid almost wholly to
liability 10 obtain financial assist
nee. IT was asserted that banks OF
iE needed funds. apd that many
real bankers claimed TO be acting
ndcr Instructions from the Federal
.eserve Board:
Governor Harding denied that tho
oard had issued instructions which
could result in curtailinE farmers
rcdt. Tho board and officials of tn.
escrvc banks were IN sympathy with
he plight Cf tho farmers. nc said
nj were encouraging loans TO all
hem. but the board was without au-
hority TO instruct member banks as
loans they could CT could not
,ake.
Honrd Knows Dimculties.
In the first place" the Governor
aid. Il can see no practical vaIu,
n your visit to the board. Our acts
re- defined by law. Your conference
ere with us has resulted only In
our retcliing what we already knew.
he board knows your trials and
our difficulties and is entirely in
ympathy with YOU"
Meanwhile the delegates consider
Il whether they should press their
cqucst for a conference with Prcsi-
cnt Wilson and his Cabinet. Some
hought 1t would be unnecessary after
he conference with the reserve
.oard.
Governor Harding again stated that
;crman interests had informed him
hey were in tho market for 1000, 900
ales of American cotton. y German
commercial agent who called on him,
,c said. had told him that German
manufacturers were eager tc buy. but
he cotton producers must accept pa
,cr maturing in nine months.
Spok kcsmcn for the cotton men said
lso that confidence of banking inter-
SITS in cotton appeared to have been
haken. They offered no explanation
or 1t, but complained that it was
icfeating them in their efforts to bor-
ow.
y II would suggest that the burning
f gins and other destructive work
Which has been going on in certain
ections of the South Is not calculated
, restore confidence" Governor Hard
nS said.
you cannot blame banker for
o; wanting to make loan on
ommodity which might be de-
troycd. can you?"
Ask for More Currency.
Appeals were made to the board
or the issuance OF more currency,
peakers said. the belief existing that
would relieve the Financial strin-
ency."
]. S. Wannamaker, president OF the
merican Cotton Association, asked
,e board whether there was not
ONE way in which this could DO
one. He said he was a banker, and
@ believed an increase in the Fed
raj reserve note issue would remedy
10 situation.
Governor Harding replied that the
ote issue was now nearly $1,000
10, 900 more than a year ago, and
,at charges that, deflation was re-
,onsible for the situation confront
Ing producers, were without foun-
,tion. The amount OF note issue
as governed by law. he explained.
ldine that If the farmers would
ave the country on paper basis"
iey should ask Congress to change
20 laws
But the Federal Reserve Board
III be no party TO any such scheme"
continued. "It is economically
rong and you would all be sorry
r. proposing the change, once 1t
I'd been made"
Senators Smith, OF South Carolina,
(Continued on Second Pagc.}