The Lee County journal. (Leesburg, Ga.) 1904-19??, 1921-07-29
OFFER OF CREDIT
TO COTTON UAlSERS
FEDERAL RESERVE OFFERS CRED
1T FACILITIES TO HANDLE
COTTON CROP
FUTURE OUTLOOK IS BRIGHT
Says Spirit OF Optimism VIII BE
Tangible Help To Tho
Southern Farmer

Washington.--For the purpose OF
reviewing the credit situation and de-
termining what further credit VIII be
needed to facilitate the harvesting and
orderly marketing OF this years cotton
crop, as well as the hold-over, from
last year. the federal reserve board,
wires one OF the Washington special
cOrresuondents to the Atlanta Con-
stitution. recently held con-
ference with the governors OF the
federal reserve banks Of Atlanta, Rich
mond. ST. Louis, Kansas City and Dial.
las, the banks located in or brought IN
closest touch with the member banks
In the Southern states
As a result of this meeting the fed
eral reserve board and the governors
of the federal reserve banks announce
that the federal reserve banks, In ad.
dition TO credits already extended, are
able to stand ready to extend further
credit for the purpose of harvesting
and marketing the coming crop in
whatever amount may legitimately be
required, either directly to their men,
Der banks, or, under the ruling made
by the board recently, indirectly to
non-member banks acting through the
agency, and with the Endorsement OF a
member bank. These loans win be
made by the federal reserve banks up
on notes, drafts and bills of exchange
issued or drawn in accordance with
the terms OF the federal, reserve act
and the regulations of the federal re-
serve board.
This announcement, following the
statement of Eugene Meyer, Jr., man
aging director of the war finance cor
poration, that his board stands ready
and willing to ASSIST the Southern farm
ers in the expectation of cotton as
demonstrated in a $5,000.000 loan to
the cotton growers of the Mississippi
delta district, brings a decidedly more
roseate prospect to the farmers OF the
South, as well as those who are so
vitality interested in their prosperity.
Governor Wellborn of the Atlanta
federal reserve stated that he is much
pleased with the action of the board,
and that, in his opinion, 1t will do
much to stabilize the cotton market.
He explained that 1t was almost Inn
perative that some such action be TAX
en- in view Of the fact that the incom-
ing crop was nearly here and that. in
addition to that, 1t becomes necessary
to market a large part of last years
crop which has never been sold. AS a
result of the action of the federal re-
serve board, he believes that a spirit
OF optimism will be created which Will
result in tangible benefit to the South.
At the present time the five reserve
banks in question are lending to their
members $457, 900. 600 or more than 26
per cent of the loans of the entire
system, the Richmond bank borrow
ing from other reserve banks twenty
million dollars, and the Dallas bank
borrowing sixteen million dollars for
that purpose. The total loans OF these
five reserve banks to their member
hanks exceed their reserve deposits by
one hundred and ninety.two million
dollars. whereas the reserve deposits
Of the other seven reserve banks ex-
coed their loans to their members OF
on hundred and eighteen million dol
lars. The amount now loaned by these
reserve banks to their members is four
and a half times tho amount borrowed
at any one time by all the national
hanks OF the country prior to 1915
or before the establishment of the fed
eral reserve system.