Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-19
j. s. RESERVE BOARD
SAYS CREDIT HAS
NOT BEEN CURTA|LED
No Further Farm Credits
Available Now - State
ment Disappoints Farmers
Representatives
The Atlanta Journal News Bureau,
623 Riggs Building.
BY THEODORE TILIER

WASHINGTON, D. G., Oct. 16.-
The Federal Reserve Board. issued its
expected statement late today re-
garding extension of farm credits,
and it's reply to the pleas made
throughout the week by delegations
of farm leaders is a practical rejec-
ton of every suggestion offered for
federal assistance in the present ag-
ricultural crisis. The board claims
that credit has been Steadily avail
able" for the successive seasonal re-
quirements of agriculture and that
the credit situation is improved"
This is in variance v'th claims
made here during the cotton con-
terence and at the meetings with
the board and Secretary Houston.
That the chief market for our raw
and manufactured products is at
nome is another statement by the
board, which makes no reference to
the request made Of Secretary Hous-
ton that the war finance corporation
be re-established to aid in the ex-
portation Of agricultural products to
central Europe.
>Ionlghts action Of the board was
forecast in yesterdays dispatches to
Inc Journal, which reported that the
farmers would be disappointed.
The board met every statement
charge and demand of the farmers.
and replied with claims that credit
had been available, and then inform
ed the farmers that the disturbances
OF credit and demand were inevtta-
BILE and unavoidable because of the
world war"
Inc board in its statement tonight
set forth, in substance, the following
declarations:
Features of Eeply
F1rst-That the chairman and gov
ernors Of federal reserve banks. now
in conference here, had declared that
credit had been available to meet all
the seasonal requirements of agricul-
ture, and that there was no occasion
to fear this credit would not continue.
Second-That the present improved
credit situation is due in part to the
timely steps taken last spring by
the board and that this effort was to
provide credit for crop-moving re-
quirements... .--.-.--..-,,. ~,
Third-That reports from 500 lead
Ing member banks representing 70
per cent of the member bank re-
sources, showed they had increased
their loans for agricultural, indus
trial and commercial purposes by an
81
last January.
Fourth-That this increase in cred
it was possible because of the facili-
ties extended by the federal reserve
banks.
Fifth-That the twelve federal re-
serve banks have increased their
holdings of agricultural and CONNER.
cial paper by more than $500, OOO, 900.
and increased their issues of federal
reserve notes by more than $46O,OOU,-
600, and that federal reserve banks
with surplus funds have extended &C.
comm odation to federal reserve banks
in agricultural and live stock dis
tricts by means of discounts of more
than $225,000,000.
SiXth-That the price and demand
disturbance is inevitable, that while
heavy expectations of foodstuffs have
continued, the producer must look to
the consumers of this country to take
his produce.
Indefensible, Say Members
After consideration of the state
ment issued by the federal reserve
cent agricultural conference left here
to deal with the matter, submitted
the following report to- Chairman
Charles S. Barrett, of the confer
enCe:
"The statement issued tonight by
the federal reserve board not only
does not attempt to meet the situa-
ton and will not alter conditions, but
is even couched in terms to support
the price declines. The boards dec
larations that present disturbances
are inevitable and unavoidable is in
defensible in this crisis.
1--WE advise that the next meeting
(of the full conference) be held here
October 28 to complete plans already
discussed in executive session.
Mr.. Barrett, who is president of
the National Farmers union, also is
sued a statement attacking the re-
serve boards statement as qulb-
bling in essence and offering no re-
lief whatever for agriculture from
the present oppressive financial con-
dition."
Barrett's Statement
"The board is either totally and
SNAA
ditions as they affect the farmer, or
is unwilling to publicly admit the
facts" he said.
Every farmer who is an applicant
for credit knows that agriculture is
not now, and has not for months been
supplied with funds needed to eff
feet the orderly marketing of their
crops.
ut is an astounding proposition
that the federal reserve board should
be ignorant of this fact.
1.-THE statement promises that
credit would flow in future as it
has in the past. If this means that
the present apparent policy of the
board is to continue, then it is not
bit of use to tell the expectant
farmers that they will be given nee
essary and indispensable credit.
II cannot help but believe that the
board is showing more tender re-
gard for those who are manipulating
agriculture than it will extend to the
men who actually till the soil"
With reference to plans to the ag-
riculturalists, committee members
said much larger and more widely
representative convention of grow
ers would be called to carry on the
OIL oradit aytapSiOn