The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-07-26
CREDIT AVAILABLE
COTTON FARMER
EXTENDED In WHATEVER
AMOUNT REQUIRED
Ascending to Statement Made by
Federal Reserve Board and Gov
ernors Of Banks

Washington, July 19.-Furthe1
credit for the purpose of harvesting
and marketing the coming cotton
crop will be extended in whatever
amount may legitimately be required
Il Ras Announced tonight by the fed
Srsl reserve board ana the governors
az the reserve banks of Richmond
Alberta, ST. Louis, Kansas City ane
Dallas.
{ Ehe annoRnce ensnt wa made after
y su,sRtiag Of the governors of tht
&eserFe hanks in the cotton growing
&setian to formulate uniform policy
IA sptsen loans for the orderly mar,
hating Of the new crop. /: wae De
SSdeh that credit would be extended
sither directly to- member banks By
fhe f>sstve hanks or indirectly TO non.
iasnher bangs through The agency OF
ksanenher hank.
The statement issued by the con-
fsrees said:
ST the present time the five re-
Serve banks IN question are Lending
% their members s4s7 600, 600, or
more than 26 per cent. Of the loans of
Tie entire system, the Richmond bank
borre@iHg from other reserve banks
SGT. .0S6 600 and the Dallas bank bor-
towing $is,eoo,o for that purpose,
Ths total loans Of the five reserve
Banks TO their member banks ex-
essas their reserve deposits by s1ss,-
aeo;e0o whereas the reserve aepesits
af she other seven reserve banks ex-
iced their loans TO their members by
sl15ooo,ooo.
ss'aThe federal reserve board and the
Governors of the federal reserve
banka announce that the federal
banks in addition to credits already
EXTENDED, are able and stand ready
to extend further credit for the pur-
pose Of harvesting and marketing the
coming crop, in whatever amount
rnay Iegitimately be required, either
diaeefly. toS their member banks or,
under ruling now issued by the fed
sral reserve board, indirectly to non-
msmbsr banks acting Through the
sksney ard with the Endorsement Of
i. saember bank. TAese loans will
ks made by the federal reserve banks
UPON notes, drafts and bills Of ex-,
change issned or drawn in accordance.
with sthe terms Of the federal reserve
act and the regulations of the fed
ersl reserve board, for the harvesting
81, orderly marketing of the Coming
eeftepc crop.
5>s1n order, however, that these re-
Discount facilities Of the federal re-
Ssrse banks may be made fully efec-f
i've it will be necessary that mem, me
ker banks in the cotton states place
tnair leaning facilities freely at the,
Disposal of cotton Rroducers and
asxlsrs: lin the respective localities
xi.A the knowledge and assurance
Chat the federal reserve board and
the, federal reserve. banks rscogpizs
he urgency of rendering al prop
err assistance to these important ia
tesesss daring such ahaaaaaai times.
4s:saIr. Meyer, managing director OF
the war finance cooperation, who at
tended the conference, reviewed the
activities of the war finance CORPORA
ton in making loans fer financing
cstton for immediate and future
EXPORT. Governor Strong Of the Fed
eraI Reserve bank 81 New York, and
REPRESENTATIVES Of certain New York
member banks were also invited to
tie conference to discuss the neces-
sfty or sdsisahf1ity of having vari-
6us comm escial banks through the
eSsintry establish a fund for the pur-
pose of making loans upon cotton.
il view Of tsle conclusion reached
b. Shs conference as 70 the ability
f the federal reserve banks e&ec-
teeeif to take care Of all of the le-
aitfsaa5e requirements Of the cotton
interests. it was felt that the estab-
lish1nent of such a fund at this time
ixgneaber necessary nor advisable.
Governor Strong stated, however,
thzs he had received assurances from
number of important banking in
ssssassons in New York city that if
the facilities now offered by the fed
eai1 reserve. banks and the war
faaneeS corporation should prove to
be inadequate, they will cooperate
III. the establishment Of q cotton loan
fund in Whatever amount the situa-
tion miFhJ demand"