The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1922-01-26
FINANCE THE VITAL PROBLEM

named as member of the governing
board of the Federal Reserve Bank,
that the red tape involved in the nego-
tiatiOns for loans from the War Fin
ance Corporation and the Federal
Land Banks be eliminated and that
rules of the War Finance Corporation
be changed so certain requirements
made of banks desiring to rediscount
gilt edge farm paper may be removed,
were voiced repeatedly at the Farmer
Banker conference held in Topeka,
January II, at the call of Ralph Sny-
der, president of the Kansas State
Farm Bureau.
The demand for farmer representa-
ton on the Federal Reserve Bank
Board was most strongly emphasized,
not only by men invited to speak but
by farmers representing all organiza-
tions. It's every mention brought ap-
plause.
The morning session brought disap-
pointment. Then bankers of the
state, through their association, had
been invited to attend. The associa-
ton was not officially represented.
Later w. w. Bowman, secretary, APP
peared and presented an apology for
the absence of any representative of
the association. He said it was a busy
time, that the bankers had not had
sufficient time to arrange for leaving
their homes and that they all regret
ted being absent. But he voiced the
sentiment that they were in full
sympathy with the farmers situation
and anxious to help.
The morning session was confined
largely to discussion of existing condi-
tions. 1t was pointed out in detail
how serious they We're and some of
the results that might be expected if
relief is not forthcoming.
There was some sharp criticism of
the Federal Reserve banks and the
governing board. There was insistent
demand that something be done.
At the opening of the afternoon
session Ralph Snyder, chairman, ex-
pressed keen disappointment that
bankers, members of the state assoc
iation, had not seen fit to arrange to
be present or to have representatives
at the conference.
eve are not radicals he said. eve
are farmers trying to find way out
of our difficulties and we need the
help of bankers and others. I am
sorry that bankers have not realized
the Importance of this conference.
There is a demand that Kansas get
more of the War Finance Corporation
funds. I criticise the bankers because
they apparently have not posted them
selves on how to get this money
which is available for agricultural
financing. 1 know the bankers are
busy. So are we. 1 feel that no time
is too busy for them to attend to the
most important business they have,
which is financing agriculture"
1t developed at the afternoon ses-
son that number of state bankers
were present. They had come as in
dividuals because they were vitality
interested, not as representatives of
their organization. These bankers
got up and told of conditions they
were up against. They explained the
red tape employed by federal financial
institutions, and what effect it was
having in Kansas.
1o1d bo cords Fora
up on the table, called a spade a spade
and the farmers responded to their
frankness. 1t was pointed out by A.
A. Kendall of Ozawal1ie that the
twenty per cent additional security
demanded by the War Finance Cor
poration when rediscounting gilt edge
farm paper, tended to prevent banks
from taking advantage of that agency
in relieving the money stringency be-
cause a state law prevented the banks
from pledging this extra collateral.
He urged that the War Finance Cor
poration be requested to change this
twenty per cent collateral rule.
William Macferren of Topeka, a
banker, criticised the Federal Postal
Savings banks and declared that if
twenty million of the eighty million
dollars of Kansas deposits they held,
were withdrawn and deposited in
Kansas banks, the present situation
Immediately would be relieved.
Walter E. Wilson, former state
hank commissioner. urged farmers to
act in unison. He commended the
farmer bloc in Congress, urged a
farmer on the Federal Reserve Bank