The Washington times., 1920-10-14
NEAR DECISION
ONCROPL0ANS
Reserve Board Reported 0ppos-
ed to Plan Allowing Holding
. Over OF Produce.

Governor Harding Of the Federal
reserve board announced today that
final decision by the board, with re-
spect to the demands Of various
producing groups for credit relief
cannot be expected before Saturday.
ARE HOLDING CoNFABs.
He stated that the problems which
have arisen as result OF the de-
mands OF the producers are being
threshed out by the board In confer
ence with the governors OF thevari-
Gus Federal Reserve Banks. and no
intimation OF what the boards atti-
tude will be can be divulged until Its
| conclusion. TAe sessions are expected
to continue until tomorrow night.
Governor Harding. however, in
statements made TO various represen-
tatIves OF the producers who called
upon him, virtually reiterated his
previous utterances to the effect that
the producing elements can restore
confidence more quickly by putting a
stop to calamity talk, and by the ob-
servance of more practical methods
in disposing OF their harvested crops
OPPOSES .HOLDOVER" CROPS.
To the plea OF the producers that
the Federal Reserve Board take deh-
mite action that will enable the pro-
ducers to carry their crops over until
. prices reach a level above producing
costss Governor Harding declared
such a course would be dangerous to
the nation financially.
There Is danger Governor Harding
said in the wholesale holding OF
crops for. higher prices. Referring
particularly to the cotton producers,
he said IL would seem possible for the
cotton men to sell part OF their cot
ton now. although 1t be at figure
below production cost, and realize
fair average on subsequent sales. In
the last resort, he said. the aim OF
orderly marketing is to secure an
average price. He urged that 1t would
be ruihous to the various interests
now appealing for help to further ex-
pand the banking credit of the coun-
try to unsafe limits by utilizing
credit to hold commodities off the
market to influence still higher
prices.
CAN'T LEND ANY MONEY.
"The Federal Reserve Board can
not lend a cent of money to help pro-
ducers out of their present Trouble
Harding said. "The board is not
authorized by law to lend money. 1t
must confine, it's functions to those
outlined and authorized by law. The
law authorizes the reserve banks to
rediscount eligible paper and the law
defines what is eligible.'
Governor Harding said the false
idea was prevalent that the Govern
ment is in a position to come to the
relief of~any group that may be tenn
porarily in trouble He suggested
that the producers might solve their
difficulties by getting their home
banks to meet the requirements in
their localities.
This advice was given by Harding
to the producers:
WANTS MYSTERIES STOPPED.
"Stop letting Mysteries enter into
the settlement of problems such as
those that have arisen. Those prob
lens can be met in calm. business
like manner, but they are not going
to be met by methods which destroy
confidence. Get in touch with your
own banks. Your banks at home
ought to be able to sustain the indus
tries in their respective localities.
Governor Harding indicated that
the board is interested in solution
of the producers, problems, but not
to the extent of further Initiating
bank credits more than $4,000 900 900
the amount which 1t is estimated
would be tied up in loans, IL producers
were. permitted to hold their crops