Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1921-07-22
CREDIT ON COTTON
Reserve System Completes Arrange
n1ent to Let Out Money.

Reserve System Completes Arrange
mert to Let Out Money.
Washington, July 19.-Further cred
it for the purpose of harvesting and
marketing the coming cotton crop will
be extended in whatever amount may
legitimately be required, it was an
nounced tonight by the federal reserve
board and the governors of the re-
serve banks of Richmond, Atlanta. st.
Louis, Kansas City and Dallas.
The announcement was made after
n meeting of the governors of the re-
serve banks in the cotton growing sec
tion to formulate a uniform policy OH
cotton loans for the orderly marketing
of the new crop. 1t was decided that
credit would be extended either di-
rectly to member banks by the reserve
banks or indirectly to non-member
banks through the agency of mem
ber bank.
The statement Issued by the con-
ferees said:
AT the present time the five re-
serve banks in question are lending
to their members 457,OO0,000, or more
than 26 per, ceht of the loans of the
entire system, the Richmond bank
borrowing from other reserve banks
s20,OOO,0OO and the Dallas bank bor-
rowing s16,OO0,OO0 for that purpose.
the total loans Of the five reserve
banks to their member banks exceed
their reserve deposits by $1s2,O0O,O00
whereas the reserve deposits Of the
other seven reserve banks exceeded
their loans to their members by S11S,-
100000.
1.-THE federal reserve board and the
governors Of the federal reserve banks
announce that the federal banks in ad-
dition to credits already 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 NOM
Der banks or under a ruling now is
sued by the federal reserve board, in
directly to non member banks acting
through the agency with the indorse-
ment of member bank. These loans
will be made by the federal reserve
banks upon notes, drafts and bills of
exchange issued or drawn in accord
ance with the terms of the federal re-
serve act, and the regulations OF the
federal reserve board, for the harvest
ing or orderly marketing of the conf
ing cotton crop.
In order, however, that these re-
discount facilities of the fcdederal re-
serve banks may be made fully effec-
tive it will be necessary that mem
her banks in the cotton states place
their loans facilities freely at the dis
posal of cotton producers and dealers
in the respective localities with the
knowledge and assurance that the
federal reserve board and the federal
reserve banks recognize the urgency
of rendering all proper assistance to
these important interests during such
abnormal times.
"Mr. Meyer. managing director OF
the war finance corporation. who at
tended the conference, reviewed the
activities of the war finance corpora :
tion in making loans for financing
cotton for immediate, and future ex-
port. Governor Strong Of the Fed
eral Reserve bank of New York. and
representatives of certain New YORK
member banks were also invited to
the conference to discuss the neces-
sity or advisability of having varl-
GUS commercial banks through the
country establish a fund for the pur-
pose of making loans upon cotton. In
view of the conclusions reached oy
the conference as to the ability OF the
federal reserve banks effectively lC
take care of all Of the legitimate re-
ouirements of the cotton interests II
was felt that the establishment of such
Il fund at this time is neither neces-
sary nor advisable. Governor Strong
stated, however, that he had received
assurances from number Of import
ami banking institutions in New forE
city that If the facilities now offereo
by the federal reserve banks and the
war finance corporation should prove
to he Inadequate they will cooperate
in the establishment Of a cotton loar
fund in whatever amount the situa-
ton might demand"
Washington, July, 19.-An agree
ment to make an advance OF SS00'ool
to 4. southern exporter to finance thu
exportation of approximately 12,o0l
bales of cotton was announced today
bv the war finance corporation. The
cotton, the corporation said. Is from
Georgia, North and South Carolina
and under this loan is to be held lr
warehouses for export within u per-
iod Of six months.
SHORT NEWS STORIES
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