The Little River news., 1921-07-23
CREDIT IS PROMISED
 THE COTTON PLANTER
Reserve Board to Provide Funds to Handle Coming Crop; Present
 Loans Are Heavy.

Washington, July 19.-Further cred itfor harvesting and marketing the coming cotton crop will be extended in whatever amount legitimately re- quired, it was announced tonight by the Federal Reserve Board and the | governors of the reserve banks of | Richmond Atlanta, St. Louis, Kansas City and Dallas.
 The announcement was made after meeting of the governors of the re- serve banks in the cotton-growing sections to formulate uniform policy on cotton loans for the orderly mar keting of the new crop. It was decid- ed that credit will be extended either | directly to member banks or indir- ectly to non-member banks through the members.
 Governor Strong of the New York reserve bank and representatives of certain New York member banks at tending the conference said it was their opinion the proposed establish ment of fund by various commer- cial banks for making loans on cot ton was rather necessary nor ad- visable" at this time The statement issued by the conferences said:
 Statement of Policy.
 Tn view of the vital importance of the problems incident to the har- vesting and marketing of the coming cotton crop, the Federal Reserve banks of Richmond, Atlanta, St. Louis, Kansas City and Dallas, the banks located in or brought in clos est touch with the member banks in the cotton states, for the purpose of reviewing the credit situation in these states and determining what further credit will be needed to facil- itate the harvesting and orderly marketing of this crop.
 "At the present time the five re- serve banks in question are lending to their members $457 ,00O, 900, or more than 26 per cent of the loans of the entire system, the Richmond bank borrowing $16,OOO,OOO for that pur- pose The total loans of these five reserve banks to their member banks exceed their reserve deposits by $192,000, ,0a0, whereas the reserve de- posits of the other seven reserve banks exceed their loans te their members by SIS, S,0oo,0O0.
 "The amount now loaned by these reserve banks to their members is four and one-half times the amount borrowed at any one time by all the national banks of the country prior to 1914, or before the establishment of the federal reserve system.
 Further Aid Promised.
 "The Federal Reserve Board and the governors of the federal reserve banks announced that the federal re- serve banks, in addition to credits al- ready extended, are able and 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 member banks or under ruling now issued by the Fed eral Reserve Board indirectly to non- member banks acting through the agency and with the endorsement of member bank. These loans will be made by the federal reserve banks upon notes, drafts and bills of ex- change issued or drawn in accordance with the terms of the Federal Reserve act, and the regulations of the Fed eral Reserve Board for the harvesting or orderly marketing of the coming cotton crop.
 Tn order, however, that the redis- count facilities of the federal reserve banks may be made fully effective, it will be necessary that member banks in the cotton states place their loaning facilities freely at the disposal of cot tor producers and dealers in their re- spective localities with the knowledge and assurance that the Federal Re serve Board and the federal reserve banks recognize the urgency of ren- dering all proper assistance to these important interests during such ab- normal times"
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