Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-11-18
3 DEVELOPMENTS
Of HIGH IMPORT To
SOUTH ANNOUNCED
Reserve System and War
Finance Corporation Both
Working to Furnish Per-
manent Credit to Farmers

ACWo VI h4SA 4ulpOl IdI1CS 10 LH0
farmers, especially the cotton grow
ers of the south, and therefore Of
moment to the business world.
First - The federal reserve system
announces that it's rules have been
modified so as to permit Of greater
financial aid to the cooperative
marketing organizations. The rule
which limits discounts of member
bank acceptances to 10 per cent
of the resources of the bank has
been changed so as not to include
paper based on agricultural prod.
rcts.
Second IL A conference between
President Harding and Eugene
Meyer, director of the war finance
corporation, it is announced, will
probably result in a permanent
plan of furnishing assistance to CO.
operative marketing ssociations
and extending other financial aid
to farmers.
Third - An important meeting of
scientists and educators is called
for November 20 at Washington to
discuss the cotton situation.
RESERVE BANKS EXTEND
FACILITIES FOR "CO-OPS"
WASHINGTON, Nov. 17.-Liberal
facilities for the extension Of credit
to the agricultural industry were
seen today by federal reserve Off
GERS in recent rulings of the board
regarding the eligibility for redis-
count Of the paper of cooperative
marketing associations.
The most recent ruling excludes
growers drafts drawn and accepted
by cooperative associations from
tire provision of the federal reserve
act which limits the amount Of pa
per by one maker a federal reserve
bank may rediscount for any mem
Der to 10 per cent of the capital
and surplus of the member bank.
Removal of the 10 per cent 1imita-
ton from cooperative marketing as
sociations was regarded by board Of
ficials as Of extreme Importance in
furnishing adequate credit facilities
to these organizations.
Other ruling opening up credit
channels to these associations an.
nounced by the board covered the
eligibility for rediscount of growers
drafts accepted by associations,
notes of associations for funds to
pay for commodities purchased,
warehouse receipts covering agri-
cultural products for security, and
bankers acceptances drawn by as
sociations and secured by warehouse
receipts.
The board also has ruled that the
carrying of a crop pending orderly
marketing is an agricultural opera
ton and farmers note for finan.
cling the carrying of his products for
a reasonable period is eligible for
reNscount.
Proposals for legislation modify
ing the federal reserve act to pro-
vide these greater facilities for agri-
cultural credits are expected by
treasury officials to make their APP
pearance soon in congress.
The subject already has been I'm.
der discussion by the administration
and it was said today that Secretary
Mellon saw no objection to some
modification of the law, particularly
with respect to providing a longer
maturity than six months, the pres
ent limit. for live stock paper be-
cause of the longer turnover in that
industry.
Whether recommendations on the
subject will be made to congress by
Mr.. Mellon in his forthcoming an
nual report were not disclosed.
HARDING AND MEYER
PLAN PERMANENT AID
WASHINGTON, Nov. 17.-Eugene
Meyer, Jr., managing director of the
War Finance corporation, conferred
with President Harding Wednesday,
and was understood to have discuss.
ed the farm credit situation. 1t is
believed that in his message to the
regular session of congress in De-
cember, Mr.. Harding may discuss the
possibility of need for legislation to
provide permanent financing ma
chinery for agricultural and live
stock industries.
According to some Of the pres.
dents advisers additional cogs in the
federal farm financing machine are
needed to place agricultural credits
on a firm basis, particularly with re-
street. to cooperative marketing asso-
and to furnish a perma-
nency of operation denied under the
present limited authority of War
Finance corporation.
Mr., Meyer believes that the War
Finance corporation is essentially a
temporary agency designed to meet
an emergency, but unsuited to the
permanent banking structure of the
country. In his view the solution of
the farm credits problem hes in re-
lance on local capital and manage
ment to the fullest extent for the
permanent financing of the agricu'
curGl and live stock industries, look
rS to the government only to au-
lho-i2e the proper machinery and to
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