The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1921-02-04
Governor Harding Says Reserve
Banks Increased Instead oil
Restricting Loans.
FIGURES REFuTE CHARGES
More Than Two.and-a-Haf Times rs
Much Paper Was Discounted In
Eleven Months OF 1920 az IN the
Year t019---Report to Gronna.

Washington. More than two and
One-hnif times as much agricultural
paper was redlscounted by Federal
Reserve banks In the II months down
70 December l, 1920. as was redis-
counted during the entire year Of 1919.
according 10 estimates furnished BY
Governor Harding Of the federal re-
serve board 10 Senator A. j. Gronna,
chairman OF the senate committee on
agriculture. The estimates furnished
show that farm paper rediscounted
last year amounted TO almost $1,000
O0O.0oO. The estimates are. 1870. ST.
DS0, 033.0 600 1919. $72o. 100000.
The farmers have been complaining
that Federal Reserve banss discrimin-
atcd against them, and Instead Of
making credits TO the growers more
elastic. actually restricted loans.
Treasury officials have consistently
maintained that credits were not re-
stricted hut We're greatly Increased.
Nevertheless, the farmers have insist
ed that they have been Disseminated
against. and on this contention they
have based their demand for revival
of the War Finance corporation. The
bin revlying the corporation has been
passed by congress.
More Loans Than Are Tabulated.
In his letter To Senator Gronnn.
Governor Harding intlmates that while
his figures are merely estimates based
on the production and sales OF farm
products. undoubtedly much more
money than IL tabulated was actually
leaned to the farmers. He writes:
''in compliance with the request
mnde In your letter OF December Il
for information regarding the amount
II actual agricultural piper redis-
counted during the years 1910 and
1920 Ito dated. based ON agricultural
production and sales of the respective
years. have the honor To submit here
with copy of tabular statement eoA,-
piled from telegraphic data received
from al Federal Reserve banks.
Section II of the federal reserve
act provides that notes. drafts aud
purposes or based .on live stock has-
Ing maturity of not longer than six
months. ARE eligible for rediseount by
Federal Reserve hank. the limit OF
.aatnrlty In NIL other eases being 30
s,nys The Federal Reserve hanks re-
discount large amounts of agricultural
paper which Inns n maturity not ex.
ceealing 80 days. hut snch paper is
classified with ether paper Of like ma
turity.
therefore. agricultural and live
stock paper. as shown by The Federal
Reserve hanks. applies only tn paper
having maturity Vt longer than 50
days. The hoard receives this inv,
matlon from day Ia day and he
amount OF agricultural discount az
each Federal Reserve bank, that Is
paper having u maturity ot from nine
~ DAYS To six months, Is published
each month In the Federal Reserve
Bulletin.
''rh. special figures furnished nv
the Federal Reserve banks In accord
ance with your request are In all eases
estimates. no exact figures of the total
volume Of loans for agricultural pur.
poses hsing available AT the Federal
Reserve hanks, In the first place. mos,
of the borrowings nj Federal Reserve
banks by meinber banks during the
year 1919 and n considerable proper,
lion of these borrowings during the
current year have been In the form nj
The narrowing banks own notes. Sc
cured by government obligations or BY
commercial. Industrial and agricul-
turai piper. II Is known that member
banks In New York city have made
large leans Ia their correspondent
ranks throughout the country. and II
reasonable to suppose that part OF