New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-30
Harding Links
Policies w it'll
Trade Revival
White House Statement Re
views Accomplishments:
Federal Reserve Banks
Cut in Rates Is Cited
Aid for the Farmer and
Improved Credits Are
Included i'm the Report
From 7'hs Trsbame's Washington Barsax

structive efforts or the Administration
for the revival OF business and fnan.
ciai conditions throughout the coun-
try are reviewed to-day in statement
made public at the White House. The
series Of measures for the relief Of
business men and agriculturists are
dwelt upon and figures reproduced to
show what has been ACCOMPLISHED
What is to be done for the railroads
and the necessity which impels such
action, is set forth. The revival of the
facilities of the War Finance Corpora
ton and the pool raised for the benefit
o. the livestock industry are two
efforts which, it is stated, have had q
far-reaching effect. The action of the
Federal Reserve banks in reducing the
interest rates is looked upon as the
important step IN the business revival
Of the country.
White House Statement.
The White House statement fol-
lows:
THE accomplishments of the last
four months by various branches of
the government in the direction of
IN
ing provision for the governments
short dated debt, in assisting both
industry and agriculture to better
markets and in providing for the
financial necessities of the railroads,
constitute in the aggregate an achieve
ment of the largest Importance to the
country.
"Perhaps the most important devel-
opment has been the action taken by
the Federal Reserve Banks in reduc-
ing discount rates. This action is
calculated to relieve the stagnation
of business, and at the same time it
gives authoritative recognition of the
Improvement in credit conditions JUS
tifying the policy of reduced rates
During the latter part of 1919, and
from time to time in the year 1920,
increases of rates of discount had
been made by the Federal Reserve
Banks in order to meet then existing
conditions. There had also been in
troduced in several reserve districts
so-called progressive discount rates,
under which, after the member bank
had discounted it's paper with it's Fed
eral Reserve Bank up to a certain
point, it was then required to pay
progressively higher rates for further
discounts in order to check excessive
borrowings. These rates have recently
been netirely abolished, again indi-
eating improved credit conditions
The first of the successive reduc-
tons in discount rates came on April
10, when the Boston Federal Reserve
Bank reduced its rate on commercial
paper from z to 6 per cent, and made
like reduction on agricultural paper
"A reduction from per cent to 612
per cent on CONNIE rcial paper was made
by the New York bank on May 5, while
that on agricultural paper was like
wise reduced from 7 to Il per cent.
"On May 6, the Atlanta bank reduced
the commercial paper rate and also the
rate on agricultural paper from 7 to
6 per cent
Chicago Bank Reductions
"On May Z, the Chicago bank reduced
the commercial paper rate from to
615 per cent, and the rate of agricul-
tural paper from to 61z per cent.
"On May 10, the Minneapolis bank
reduced the commercial paper rate from
to 612 per cent, and the rate on agri-
cultural paper from z to 61a per cent.
"On May Is, the Dallas bank reduced
the commercial paper rate, and also the
rate on agricultural paper from 7 to
81s per cent.
Son June 16, the New York bank
again reduced the rate on commercial
tapCA 14Oli " y 10 o per cent, anu the
rate on agricultural paper from 61a
to 6 per cent.
On June 25, the Dallas bank made
us second reduction, lowering the rate
on both commercial paper and agricul-
tural paper from Ga to per cent.
I'm July Il or whereabouts, the Bos-
ton, New York, Philadelphia and San
francisco banks reduced the CONNER
cal paper rate from 6 to 51a per cent
AZ the same time these banks made a
IKE reduction in the rate on agricul-
eural paper.
IT is unsafe to prophesy concerning
sOndltlons in the future, but it may be
expected that recognition will be given
10 further improvements in conditions
IN accordance with the dictates of
sound banking practice.
a, IL Will not have escaped attention
tnat the rates of discount Of the Bank
" england have also been successfully
reduced and that these reductions have
Deen substantially coincident with the
IsauctIons in Federal Reserve rates in
snis country. This would appear to be
frank recognition of the intimate re-
+ ,Isioh between the money markets in
'his country and of Europe, and a
recognition as we'll of the Improvement
IN world credit conditions. The impor-
sance OF coincident reduction by these
swo ,eaaing banking systems lies chiefly
N ene TACT that it indicates q mutual
uesire 20 reopen the International chan
mel. aeiS OF credit on which international
trade depends.
New Refunding Policy
e. me Treasury on it's part has, dur
tns tne past four months, successfully
ssnaugurated its new policy of refund
ing sne short dated debt of the govern
...1ehs ana distributing the early matur-
lies over the period between the ma
{SIliey OF the Victory loan in 1923 and
Sle 1hird Liberty loan in 1928. The
ss Offering of Treasury notes pur-
sasaA 20 TINS policy met with a most
asnsslastlc response, and the further
selopment of the program should
I'm. ling about a better distribution of
she public debt and much improved
cnr; 800 CONDITIONS for government Sc
,, aaasies. There has already been
ns;a Aeo Improvement in the market
ices paices OF Liberty bonds and Victory
~. ana the market for all outstand-
sa s issues OF short term government
az, 1is Is in better shape than at
"s siine since the depression.
Aiong with these accomplishments
sa ese De mentioned the resumption Of
I've Eve operations by the War Finance
tolporatlon. which had ceased opera
s,ons IN May, 1920. Since its active re-
tn9tlon of operations this corpora
~ WI 9 mas now agreed to make advances
ss,o.s finance large quantities of cotton
r,JIsI,egating nearly a million bales. |
"s'.ie the Federal Reserve svste,r 10