Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-08-01
BANKS WELL ABLE
TO HELP FARMERS
Federal Reserve Reports on
Credlt-LocaI Exchange
Trading-Notes.

supply of credit adequate to meet
this years seasonal requirements is
! provided by the present strength Of
i banks, and added facilities for agri-
cultural financing. 1t was said by the
FEDERAL reserve board in a statement
| made public last night.
Credit cannot make market
where none exists" the board said
however, adding that the agricultural
| outlook lis conditioned by the world
supply of leading farm products and
the buying power of consumers, both
domestic and foreign, during the
coming year. The summary called
attention to the hand to-mouth pur-
chases by Europe and explained that
such situation necessitated fnanc-
ing the American products until the
foreign demand increases
SUFFICIENT Available.
In surveying the agricultural situ-
alton the board said. lit is still too
early TO estimate with approximate
accuracy the proceeds TO the farmer
from the approaching harvest. Me-
ther the volume of production nor the
prices through the period of market
ing can now be definitely known. Il
is evident. however, that with the i'm
proved credit facilities and the strong
position of the banks, the credit
available is adequate to provide for
the needs of orderly marketing"
me summary asserted that the
lowered prices of agricultural staples
selling price of his output was out
or line with the price of things he
buys There has been some adjust
ment OF the differential in the last
board, but even then. it expla
the return TO the farmer has been
the direct outcome Of the word sup
ply and world demand.
Competition fixes substantially the
same price in all countries for Ihcsc
agricultural staples which are SOLD
and this continues to be trI.: even
under the existing disorganized cur
rency conditions The return 10 the
American farmer: IS. therefore, the
demand, of which the domestic pro-
duction and demand constitute only
part While foreign demand Is
more important in the marketing ~
others, in the aggregate the domestic
market consumes much The larger
proportion of our agricultural prod
ucts The domestic demand for farm
products during the past YEAR has
increased as result of the large
buying power of industrial worries
arising from fuller employment nd
wage advances.
Hearing on Checks ReOpened.
The Federal Reserve Boards de-
cision to prohibit reserve banks from
handling checks on which collection
fee is charged. the effective. date of
which was postponed from last week.
was opened today TO further hearing.
hp,n id
Charles Claiborne of New Orleans,
president of the National and State
Bankers Protective Association. ap-
peared to protest against the pro-
posed amendment to the reserve reg
ulations and to offer counter-sugges-
tions.
Members of the board declined 10
discuss questions reported to have
been raised by the bankers commit
tee further than to say full hearing
would be given and any points made
by the committee would be thorough
ly considered.
A majority of the board is known
TO favor invoking the proposed regu-
lations compelling the handling of
checks at par through all banks
which are members of the reserve
system. Several have said that their
investigations thus far had failed to
show any reasons for altering their
views.
Local Exchange Very Quiet.
August started off inauspiciously
on the Washington Stock Exchange
when but three stocks figured in the
trading.
Capital Traction recovered to 997s
on two 10-share sales. and Lanston
was weak at 20 on a sale of 10
shares.
Mergenthaler was unchanged at
lo0&. thirty shares changing hands.
Personal Mention.
Clarence F. Norment, president IF
the National Bank of Washington
who has been summering at Atlantic
City, will return to Washington to-
morrow and resume his banking du-
ties Friday morning,
Eliot H. Thomson of the Washing
ton Loan and Trust Company begins
tour of the middle west the latter
part of this week. He will be ac-
companied by his daughter.
Maurice Otterback. president of the
Anacostia Bank. returns today after
a lengthy vacation spent in New Eng
land areas.