South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-10-14
U.S.. FARMERS
SEEK CREDIT
FROM BOARD
Difficulty of Agricultural Men
to Obtain Money Threatens
Food Production.
BY The AssOciated Press.

BY The Associated Press.
WASHINGTON Oct 13.-The
federal reserve board is preparing
TO make a new statement of policy
covering all phases Of the credit
situation. Gov. Harding told repre-
sentatives Of the agricultural inter
ests, in convention here who ap-
pealed 10 him today for relief from
Stringent" credit conditions. The
statement, Gov Harding said. prob
ably would be made public Satur-
day after the conclusion Of the fall
conference of federal reserve agents
and reserve bank governors here.
\ committee from the reserve
board listened for three hours TO
accounts OF conditions which the
agricultural delegation said threat
ened the life of the nation through
a reduction Of food production. Diff
ticulties of the farmers were laid al
most wholly TO inability to obtain
financial assistance. IL was assert
ed that banks of the reserve system
were not supplying needed funds
and that many local bankers claim
ed 10 be acting under instructions
from the federal reserve board.
Board Sympathizcs.
Gov. Harding denied that the
board had issued instructions which
would result in curtailing farmers
credit The board and officials Of
the reserve banks were in sympathy
with the plight of the farmers. he
said, and were encouraging loans
without authority 10 instruct mem
Der banks as 10 loans they could
or would not make.
"In the first place" the governor
said. L can see no practical value
in your visit 10 the board. Our
acts were defined by the law. Your
conference here with US has result
ed only in your retelling what we
already knew The board knows
your trials and your difficulties and
is in entire sympathy with you.
Meanwhile the delegates consider
ed whether they should press their
request for a conference with Pres't.
Wilson and his cabinet. Some had
thought il would be unnecessary to
take their grievances before the
cabinet after the conference with
the reserve board. II was also said,
that most cabinet members are out
Of the city and that as the delegates
expected TO cenfer with Sec'y. Hous-
ton and Sec'y Meredith Thursday,
~
insisted upon.
German Interests.
Gov. Harding told the delegation
that German interests had informed
him they were in the market for
two million bales or American cot
ton. A German commercial agent
who called on him, he said, had
told him that German manufactur-
ers were eager to ouy but the cot
ton producers must accept paper
maturing in nine months in pay
ment. The governor suggested 10
the cotton interests represented Inat
they make use OF the German mar
ket after the delegates had SAID
there was no domestic market.
Spokesman for the Gotten men
said also that confidence or bank
ing interest in cotton appeared TO
have been shaken. They offered no
explanation for 1t, but complained
that it was defeating them IN their
efforts 10 borrow.
II woul sufggest that the burning
Of gins and other destructive Work
which has been going on IN certain
sections OF the south is not calcu-
lated 10 restore confidence Gov
Harding said. You cannot blame
a banker for not wanting 10 make
a loan on a commodity which might
be destroyed can yOu?'
Make Appeals.
Appeals were made 20 the board
for the issuance OF more currency.
Speakers said the belief existed that
il would relieve the financial "strin-
gency."
J. s. Waramaker, president OF
the American Cotton association
asked the board whether there was
not some way in which this could
be done. He said he was a banker
and that he believed an increase IN
the federal reserve note issue would
remedy the situation.
Gov. Harding replied that the
not issue was now nearly $1,000
600 600 more than a year ago and
that charges that defation was re-
sponsible for the situation confront
ing producers were without founda-
ton. The amount of note issue
was governed by law, he said. and
added that II the farmers would
have the country on paper basis.
they should ask congress 20 change
T1Wg