Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-10-16
COTTON INTERESTS
| ASK KRED|SCOUNT|NG
OF FARMER NOTES
Want Reserve Board to
Suspend Regulations De-
fining Such Paper.
ANOTHER EFFORT TO GAIN
RELIEF FROM STRlNGENCY
Fear Lifting of Restrictions
Would Result Disastrously
to Business.
MERCHANTS REQUEST ACTION
Would Enable Banks to Handle
Notes on Which Advances
Were Made Planters.
ANOTHER EFFORT TO GAIN
RELIEF FROM STRlNGENCY
REQUEST ACTION
Would Enable Banks to Handle
Notes on Which Advances
We're Made Planters.
IBY Associated Press.l


wASIiINGTON. Oct. lJ.-Rcprcsen.
tativcs of Southern cotton commits
sion merchants appealed to the Fed
hral Reserve Board today for suspen-
sion OF regulations defining rcd!s-
countablc financial paper. in another
onort TO gain relief from the credit
"stinGency" which cotton interests
declare has struck the whole indus
Try.
Propositions laid before the board.
however. were declared BY Governor
Harding TO be 80 intricate and to in
volvc such serious questions that the
delesat!on. numbering thirty or more.
was given no definite reply. Five
Southern Senator'S headed the com
mittec. which was made up entirely
Of cotton factors or commission men
and bankers.
Fear DISASTROUS ResuIts.
Board members Indicated they
feared the disastrous" results to
business generally should the restric-
tions about which the cotton lneL
complained. be lifted. Suspension OF
the regulations even temporarily. 1t
was said. would mean flooding or
reserve banks with rediscounts sought
on paper classified as similar TO the
obligations which tho cotton men de-
sired 10 have accepted.
Specifically. the delegation asked
that the reserve banks be permitted
10 rcdiscount paper on which the
commission man had made advances
to the cotton planter. Governor
Harding declared. however. this form
OF paper. even though secured by
mortgage on the planters crop. did
not come within meaning OF tho Fed
cral reserve act. which defined the
classes OF obligations which might be
red!scoun;ed. lie said the loans rep
resented an advance on an option. the
commission man himself not being
engaged In either agricultural or in
dustrsa! production. as required. in
order that his note might be redis-
counted
Half OF Years Crop Tied TIP.
Senator Smith. OF Georgia. told the
board that probably half OF the entire
years crop OF cotton was tied up un-
der such paper. lie urged some sort
; of help, even II II is only n tenn
porary suspension OF the regulations
until Congress can amend the law"
lie believed the change would be
readily and easily made at the next
sess ION"
The board was criticized by several
of the Senators. who declared il had
not construed the law as its trainers
! had intended. Governor Harding re-
piled that the board had Interpreted
. the provisions Of the act along what
| II believed to be sound banking lines.
The conference Of Federal reserve
agents and reserve bank governors
with the board was not concluded to-
night as had been expected. and
there were indications that the ques-
ilons involved In the proposal OF the
cotton representatives would be given
attention tomorrow. Governor Hard
ing announced Wednesday that the
board was preparing to make n new
statement OF credit policy as a result
of frequent appeals for financial mid
from agricultural interests He ex-
rccted tonight TO make public the
boards attitude on these questions
tomorrow.
Await Boards Next Move.
/ Meanwhile committee selected
from the agricultural representatives
which have been meeting here, was
awaiting the boards next move. This
committee was charged with deter
mining course of action for the
more than thirty farmers organiza-
tions whose representatives had laid
their grievances befop, various gov
crnmental agencies.
Two courses were under considera-
ion today in event the boards state
mcnt OF policy does not provide the
relief sought. One was the calling OF
a general conference OF all agricul-
tural interests to meet in Washing
ton with the conveninE OF the next
session OF Congress. and the other was
to ask the support Of the American
Bankers Association, which meets in
annual convention here next week