The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-10-18
FEDERAL RESERVE
BOARD REPLIES
Tells Farmers They Have
No Cause to Fear
Credits
O WILL MOVE
IN DUE SEASON
Increase of Over $780, 600, 900 In
Bank Loans for Agricultural, Indus
trial and Commercial Purposes from
January to October.

trial and Commercial Purposes from
January to October.
WASHINGTON, Oct. I8.-Bank credit
has been steadily available for the sue
cessive seasonal requirements Of agricul-
ture,' according to a formal statement
issued Saturday night by the federal re-
serve board, designed as a reply to agri-
cultural organizations which appealed to
the government this week for a further
extension of agricultural credit.
Recent disturbances in prices and de-
mand which have been manifest in agri-
cultural markets are inevitable and I'M
avoidable consequences of the economic
arrangements occasioned by the World
war; the boards statement said. 1t
added, however, that the gradual and
regular movement of the crops from pro-
ducers to consumers was to be expected.
In view of the representations which
have recently been made to the board as
to the unavailability of credit in agricul-
tural sections" the statement said, "the
board requested information concerning
credit conditions throughout the country
from the chairman and governors OF fed
eral reserve bank at their usual autumn
conference here this week.
ne DtFilu Is dUNlStu llllL CItllJ has
been steadily available for the successive
seasonal requirements of agriculture, as
well as for the needs of and
industry; and that there Is no ground for
expecting that its availability for these
purposes will not continue. The present
improved credit situation is due in part
to the timely steps taken last spring, fol-
lowing conferences between the board Of
governors and directors of federal re-
serve banks to provide credit for crop
moving requirements, and in part to the
subsequent Improvement in t~ranspOrta-
ton reported from all districts except in
a few localities.
Between January . and October I Of
the present year about 800 leading mem
Der banks from all sections of the cOun-
try which report their condition to the
board weekly and which represent APP
proyibately 20 per cent of member bank
resources, have increased their loans for
agricultural, industrial and commercial
purpose by an amount exceeding $500
600. 600. This great increase in the credit
extended to their customers has in the
main been made possible by the accom-
mediation extended member banks by the
federal reserve banks.
During the same period, the fed
eral reserve banks have increased their
holdings of agricultural and commercial
paper by more than $500 ,0e0, 600, and
from January > to October J.. 1920, in
AttAStAl iAN-A @hN ~ lNhNAAl A1N'' "
notes by over $500, 100000. At the SAINT
time federal reserve banks having surplus
funds nave extended accommodations to
federal reserve banks in agricultural and
livestock districts by means of discounts
~aggregating on October l over 1925, 000,-
600.
THE disturbances in price and demand
which have recently manifested them
selves in markets for various agricultural
and other commodities, not only in the
United States. hut in other countries as
well, are inevitable and unavoidable con-
sequences of the economic arrangements
occasioned by the World war. The
United States continue to have a heavy
volume of exports, although foreign de-
mand for certain agricultural staples has
somewhat decreased. But the chief mar
ket for our raw and manufactured pro-
ducts is at home, and our present huge
crops of immense value may be expected
gradually and in regular course to move
from producers to consumers. The re-
cent census, reckoning our population at
l05 600, 1000, emphasizes anew our own ca
racity as consumers irrespective of the
demands of other countries"