The Birmingham age-herald., 1920-10-14


 hearing before the membership Of
 the federal reserve board and its l agents. assembled for the regular Tall policy of the conference hc-
 fore that policy shall be formu- ] lated by the board, is far s1 1t af-
 fccts agricultural credits. The reS-
 "'"uo" was adopted after a delcEn-
 lion from the agricultural interests represented bnd spent three hours In conference with Governor Hard ing of the reserve board. The con i vcnfion named Senators Hokc
 smith Of Georgia; F. D. Smith, south Carolina, and Ovcrman 1 Worth Carolina, to convey it's re- | quest to the board in writing to-
 morrow.
 Washington, October 1--The federal reserve board is preparing to make a new statement of policy covering all phases of the credit situation Governor Harding told representatives of agricu- tural interests in convention here. wro appealed to him today for relief iron, stringent credit conditions. The state ment Governor Harding said probably would be made public Saturday after the conclusion of the fall conference Of federal reserve agents and reserve bank governors here.
 committee from the reserve board 1 listened for three hours to accounts or conditions which the agricultural deiega- tion said threatened the life of the na- tion through 3 reduction of food pro- |duction. Difficulties of the farmers were laid almost wholly to inability to obtalu financial assistance. It was asserted that banks of the reserve system were not supplying needed funds, and that many local bankers claimed to be acting under instructions from the federal re- serve board.
 Governor Harding denied that the board had issued instructions which would result in curtailing farmers cred it's The ,oard and officials of the Ic- serve banks were in sympathy with the plight of the farmers. he said, and were encouraging loans to aid them. but the board was without authority to instruct member banks as to loans they could or could not make.
 LAW DEFINES ACTS
 Tn the first place." the governor sad, 1 q see no practical value in your visit to the board. our acts are defined by law. -Four conference here with us has resulted only in your retelling what we already knew. The board knows your trials and your difficulties and is en- tirely in sympathy with you.
 Meanwhile the delegates considered whether they should press their request for conference with President Wilson and his cabinet Some thought 1t would be unnecessary after the conference with the reserve board. It was said also that most cabinet members were out of the city, and that as the delegates expected to confer with Secretaries Houston and Meredith tomorrow, cabinet conference might not be insisted upon.
 Governor Harding told the delegation that German interests had informed him. they were in the market for 2.o00,00 bales of American cotton. A German comnar- cial agent who called on him, he said. had told him that German manufacturers were eager to buy, but the cotton pro- ducers must accept paper maturing in nine months in payment. The governor suggested to the cotton interests repre- sented that they make use of the Ger man market after the delegates had said there was domestic market.
 Spokesmen for the cotton mon said also that confidence of banking interests in cotton appeared to have been shaken. lIhey offered no explanation for it.. bnt Icomplained that it was defeating them n their efforts to borrow.
 T would suggest that the burning or gins and other destructive work which has been going on in certain sections or the south is not calculated to restore confidence" Governor Harding ssm. You cannot blame a banker for Tot wanting to make a loan on com modity which might be dentroyed. can lyou?"
 1 WANT MORE CURRENCY
 Appeals were made to the board TOT the issuance of more currency Speax- ! fA>f relieve the financial strinsency." J. & wannamaker. president of ths Americsn Cotton Association, asked the board whether there was not sons way in which this could be dore Hs said he was banker and no believed an increase in the federal reserve noss issue would remedy the situation
 Governor Harding replied that the note issue was now nearly s1, 900. 900, ooo more than year ago, and that charges that deflation was respons ibio for the situation confronting producers were without foundation The 'amount of note issue was governed by law, he explained, adding that if the far mers would have the country on "paper basis" they should ask Con- gress to change the laws.
 But the federal reserve board will be TO party to any such scheme" he continued Tt is economically wrong.
  the change. once it had been made"
 Senator smith of South Carolina and Senator smith of Georgia were with the delegation and both voiced app proval of the governors attitude.
 FORGED TO SELL AT LOSS ! Reports submitted today by com mittses respecting the various agricui- tural products represented at the con- vention declared that each was in the same condition. A falling market. the report said. forced farmers to sell thesr products below the cost of production. committee was created to sit in Washington indefinitely and look after the needs of farmers as brought out at the meeting.
 ommende hat no acreage be planted next year unless conditions materialis improved It started a light in the convention, representatives of other farming sections asserting such course would create an 'unfavorabie" imoressicn on the rest of the country.
 The general conference finally adopted a substitute requesting farm CTS to plant less cotton next year un- less conditions improve
 ~fs the present conditions confront ing the cotton farmer are not ma teriaily improved. the resolution said. "we should not jeoparaixe the az ricultura1 interests of the country by planting a large cotton crop next year. II If cotton acreage can be materially