The Nevada County picayune., 1920-09-23
CONFERENCE
 SATISFACTORY

The conference held in Washington southern bankers and cotton planters with the Federal Reserve Bank Board was entirely satisfactory. he orig inal report sent from Washington that all aid had been refused is not >correct E. (. Powell of Little Rock. National vice president of the American Cotton AsSocia ton. J. k. Alexander. presi- dent of the Arkansas Division. and 0. $. Fitzpatrick of Helena. president of the Arkansas State Bankers Associa ton. were among the representatives from Arkansas.
 We consider" said MT. Powell, that Governor Harding more than met our expectations. He assured our committee that the Board would issue from thirty to forty millions of dollars in additional currency per week dur ing the crop moving period, and that there will be no contraction of agri- cultural credits during the season. In addition. he explained that the eX- pansion would have to continue until the crop moving period was over.
 "Governor Harding made it plain that so far as possible, conditions should cause crops and commodities to be sold so as to be absorbed in nor maj way, as required by the manufac- turing and consuming public, and not to be dumped upon the market within Il few months. In order to keep the annual business normal, he suggested that it may he necessary in some in- stances to, finance the crop of one year over until the next. He said that the solution of the problems confronting the southern cotton producer lies ill the financial analysis with the producers themselves and their home banks.
 As Il result of the conference, the Federal Board will extend loans on agricultural products. particularly cot ton. in which we are most directly in- houses properly insured and bonded. These loans will be extended. subject To renewal until they can be sold in accordance with the law of supply and demand. and if the loans must be car ried for twelve months or longer. they will he extended
 Governor Harding advised the South to organize Cotton Export Corpora ton under the plans recommended by the American Cotton Association. A special committee. of which Senator Joe T. Robinson of Arkansas Is mem Der. has been appointed to use its efforts to have the War Finance Cor poration re-eStablished and to use the S1o0. .G00.00O now on deposit for the purpose of furnishing credits for the marketing of cotton in foreign coun- tries. Information was given at the conference that the surplus of short cotton now held in southern markets, amounting to 3.5O0000 bales, can be disposed of in certain foreign conn tries where such cotton is usable.
 One of the striking facts brought out in the conference was the inequit- able distribution of loans made by Federal Reserve Banks in support of agricultural interests. The St Louis district. which includes Arkansas, has the lowest ration and actual volume of loans of all the eight districts. This district has total of only 29,W0.Oo0 or 22 per cent, while Minneapolis has G5.9 per cent and Chicago has S211.- GOO .000 or 4S.3 per cent. The cotton crop of the South is one of the great est sources of national wealth, and yet if appears that it k given less support than many other of the great agricul- tnral interests of the country. It k this ine1uitable condition which the Ane rican Cotton Association 's seek ing to overcome and in which it has reason to believe the Federal NReserve Hoard will use all the resources of the government.