The Birmingham age-herald., 1921-05-28
PRESIDENT ID CALL
 IN FINANCIAL LEADERS FROM MIDDLE WEST
Financiers Virtually Unani- nous In Belief Federal Re- serve Board Holds Key to
 Proper Readjustment
By Associated Press

Washington, May 27.-A group of bankers and financiers from every sec ton of the country are to be consulted by President Harding before he con- cludes the series of financial confer ences begun Wednesday night at White House dinner, whic hthe eastern banking interests were chiefly repre- sented No appointments for further conferences have yet been made, but it is probable that group of financial leaders from the middle west will be the next to be summoned by the Presi- dent.
 It was indicated today in administra- tion circles that so far as sentiment has been canvassed the financial men are virtually unanimous in believing that the federal reserve board holds the key to a proper readjustment of general financial conditions. Those consulted are understood to have told the President that in their opinion the board could go long way towards restoration of normal conditions by exerting its influence to keep loans at a reasonable rate and on sound basis.
 Removal of restrictive measures placed by the board on credit exten- sion, under the federal reserve act was kaid to have been advocated by the bankers as means of solving the problem facing the farmers of tho country.
 Rates Work Hardship.
 Progressive rediscount rates. whlch the board still continues in the St. Louis and Kansas City districts, 1t was contended, work hardship on the as ricultural interests, because pahhs which are charged more for money merely pass the increased cost along to the borrowers
 The reserve banks charge member Tanks up to a maximum of Fer cent in St. Louis and 12 per cent Ill Kansas City, for loans in excess of ire oase lne figure fixed by the board. the rates progressing 1a per cent on each 2s per cent of loans in excess or the base.
 Legislation to permit longer credits to the farmers through the extenslon of the limits fixed by the reserve act on agriculture papers enable Tor ols- count at reserve banks was said to been expressed that restriction of papers to six months was too early maturity stn the case of many farmers Extension of the maturity limits, 1t was main tained, would enable the member banks to extend correspondingly long CT terms to the farmers.
 want Stability Assurance
 A phase of the export problem, which 1t is understood was discussed was the question of a possible guarantee of the stability of the governments of coun- tries into which American goods might be shipped. The bankers were said 10 have been disposed to the view that the Edge act corporations for finan> cing exports might have more support and the operation of the war financ< corporation be given wider field 1T a means could be devised by which the exporter could be insured against the loss of his commodities through change of government in the country In which they were to be marketed.
 The administration is understood, however, to have taken the position that this government could not under take any guarantees on behalf of exe porters. but should confine its aid to co operation between governmental agencies and the various factors work Ing together in the country for world rehabilitation.
 The bankers are also said to have expressed a belief that the movement of gold into this country could not be practically interferred with, holding that this development was an inevita. bio part of the reconstruction now un- der way. Ways and means will be considered by the administration to keep the influx from leading to any erio