Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1921-10-22

~ SSSS> ~
| Demand Lower
Discount Rate
Resolutions Drafted at Ere.
mont Meeting Ask Equal
Footing With Chicago
District.
Fremont, Neb., Oct. 2l.-(Special
Telegram THE committee appoint
ed by Governor McKelvie at a meet
ing OF Nebraska bankers held III
Omaha, for the purpose OF consider
ing the financial situation, consist
ing OF c. L. Burnham. president OF
Norfolk National bank, chairman;
Bert A. Wilcox, vice president of the
Omaha National bank; John NJ.
Flanagan, cashier of the Citizens
Bank OF Stuart; ]. z. Hart, secrc-
tary OF trade and commerce; Dan
V. Stephens, ex-congressman and
president of the Fremont State bank,
together with Governor S. r. Nc
Kelvic. who is ex-ofiicio member OF
the committee, met in Fremont FRI
day for the purpose OF drafting res
olutions embodying the sentiment
OF the bankers and farmers of Ne
braska at their meeting in Omaha a
few weeks ago.
This committee has drafted resolu-
tions to be presented to Governor
Miller OF the federal reserve bank OF
Kansas City demanding that the
rules for rediscount by the federal
reserve bank be so modified that
the conditions existing in Nebraska
may be met as the federal reserve
act contemplated they should be met
in the present financial crisis. Brief
~, the committee demands that the
discount rate be reduced from 8 per
cent to 5 1-2 per cent on an equal
footing with. tie Chicago district.
Second. liberalizing OF the rules in
order that the, farmers Of the state,
whose products have shrunk 200 and
800 per cent, can secure more liber-
al credits than they have been able
to secure under present rules.
No Benefit to Farmers.
The committee had evidence be-
fore it indicating that probably 20
per cent of the farmers of Nebraska
were unable TO furnish negotiable
paper that would be acceptable to the
federal reserve bank under present
rules. The law contemplated that
in crisis of this character the fed
eral reserve bank would be a bull
wark Of strength, furnishing credit
to country banks and they in turn
furnishing credit to the agricultural
interests of the state, but the rules
provided by the federal reserve bank
make practically 90 per cent OF this
paper unavailable and the country
banks are unable to take any more
of it because they cannot secure ade-
quate rediscount privileges.
The situation among the farmers
was set forth by committee repre-
senting various farm. organizations
OF the state, who had voluntarily
come to the meeting. Among these
organizations was the Nebraska
Farm Bureau federation, represented
by H. D. Lutte, secretary; the Ne
braska Farmers COOPERATIVE Grain
and Live Stock State association was
represented by ]. w. Shorthill, Sec
retary; the Farmers Union of Ne
braska was represented by G. S. Os-
borne, president; the Midwest Milk
Producers association was repre-
sented by John Frazeur. These gen
tlemen ali conveyed to the commit
tee a uniform report OF the great
stress under which the agricultural
interest Of the state are now labor
ing and with one voice de-
manded liberallzing OF the credit
situation by the governments own
institution, the federal reserve bank
OF Kansas City.
Will Ask COOPERATION.
1t was the concensus OF the opin-
ion of all that the reserve city banks
had done their best to support the
agricultural interests of the state.
but with the Federal Reserve bank
acting in a negative way and rcfus.
ing to cooperate with them by giv-
ing reasonably liberal discount rates
and credit, they have been unable to
render the agricultural intereset Of
the state the necessary support that
they ale entitled to. 1t is the in
tention OF the committee to carry
this protest into every state which
is a member of the 10th district. in
Guiding Nebraska, Kansas, Okla
homa, Colorado. Wyoming and a
part Of Missouri. 1t was pointed
out to the committee that territory
served by other federal reserve
banks had been reasonably and lib
erally served and credit had been
available. where in this district de-
nands for liquidation had been up-
permost in the minds Of our federal
bank.
1t is believed by many people who
have had dealings with Governor
Miller OF the Federal Reserve bank,
that he views with contempt the
recommendations of the carious fin.
ancial interests of this district who
are charged with the responsibility
OF maintaining cur institutions n a
solvent condition.
One Of the objects of the commit
tees efforts is to secure liberal
policy comparable to that that was
pursued by the federal bank when it
was first opened in order that the
present crisis which the bank itself
has brought upon the district might
be alleviated