The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-06-01
-
TO TALK, WITH
MONEY CHIEFS
Bankers From All Sections to
Visit Washington at Invita-
ton of President
EASTERN MEN
ALREADY CONSULTED
Said to Favor More Liberal
Treatment OF Loans to Farm
ers


Washington, May 27.-A group of
bankers and financiers from every
section Of the country are to be con-
suited by President Harding before
he concludes the series OF financial
conferences begun Wednesday night
at a White House dinner, when the
Eastern banking interests were chiefly
represented Nc appointments for
further conferences have been made
but it is probable a group Of financial
leaders from the Middle West will be !
the next to be summoned By the Pres
fdent. e.E-
1t was indicated today in admins
trat;on circles that, SO far as ,senti-
ment has been canyassed, the financial
men are virtually unanimous in be-
Ilieving that the Federal Reserve Board
holds the key to a proper readjc ST.
ment Of general financial conditions.
have told the President that, in their
opinion, the board could go a long
way toward restoration of normal
conditions by exerting its influence to
keep loans at a reasonable rate on a
sound basis
Removal of restrictive measures
placed oy the beard on credit extern
sion, under the Federal Reserve Act,
was said TO have been advocated by
| the bankers as a means of solving the
problem facing the farmers Of the
country
Hardship on Farmers.
Progressive rediscount rates, which
the board continues in the st. Louis
and Kansas City districts, it was con-
tended, work hardship on the agri-
cultural interests, because banks
which are charged more for money
I merely pass the increased cost along
! to the borrowers.
The reserve banks charge member
banks up to maximum of per cent
in ST Louis ard II per cent in Kansas
| City for loans Ia excess of the base
line figure fixed by the board, the
rates progressing 1-2 per cent on each
80 per cent Of loans in excess of the
base
Legislation to permit longer credits
to the farmers through extension OF
the limits fixed by the reserve act on
agricultural papers eligible for re-
discount at reserve banks. was said
! to have been favored. The opinion
was expressed nat restriction Of eli
sible agricultural paper to six months
was TOO early a maturity in the case :
of many farmers. Extension of the
maturity limits. it was argued, would
enable the memoer banks to extend
correspondingly .onger terms to the
farmer.
Would Aid Exporters.
A phase OF the eXpor: problem which
it is understood was discussed was the
question of a possible guarantee OF
the stability of the governments or
countries into which American goods
might be shipped. The bankers were
said to be disposed TO the view that
the Edge act corporations for flnanc-
ing exports might have more support
and operations Of the War Finance
Corporation be given a wider field II
means could he devised by which the
exporter could be insured against the
loss OF his commodities through
change of government in the country
in which they We're to be marketed.
The administration is understood
however, to have taken the position
llha. this government could not under
take any guarantee on behalf of ex-
portcrs but should confine its aid to
cooperation among govern. .ental
agencies and the various actors
working together in the county for
world rehabilitation.
The bankers also are said have
expressed a belief that the m ement
ot gold into this country cou d not be
partically interferred with, oidlng
that this develo;me was an inevi-
table part OF the reconstruct under
way Ways ana means wi b, con-
>idcred by the administratio keep
the influx from ieiding 10 a erious
consequences.
Philadelphia, May go hens