Evening star., 1932-07-31
ADVANCE REPORTED
TOWARD RECOVERY
IN FIFTH DISTRICT
Banking and Industrial Com.
mittee Completes Third
Session Here.
PROBLEMS CLASSIFIED
IN THREE DIVISIONS
Organization of $3,0OO,00O Farm
Credit Corporation Consid-
cred by Group.
BY EWARD C. STONE.

BY EWARD c. STONE.
Steady progress toward business re-
covery in the fifth Federal reserve dis
trict is reported by Edwin c. Graham
Washington business leader, who is
chairman of the Banking and Indus
trial Committee which was organized
recently by the Richmond Reserve
Bank to study ways and means of i'm
proving economic conditions. The COM
mittee has just held its third all-day
session here
The fifth district committee had be-
fore 1t reports from similar COM
mittees in the other II Federal reserve
districts, as well as the findings OF
several important subcommittee. From
these reports, Chairman Graham said
yesterday, it is evident that the prob
lens being faced fall under three main
Observation-Disclosures of distress attend
ing the depression; elimination of the
fear which tended to produce paralysis
OF individual initiative; and determ-
ination of the most effective methods
Of putting funds to work, both public
and private.
In the reports studied were many
definite indications of a steady growth
OF confidence and of the willingness of
all forces to combine to develop i'm
proyement in economic conditions. Mr.
Graham asserted. Commenting on the
leading features of the committees
work in the fifth Federal reserve dis
trict, Chairman Graham first referred
to bank credit. He said:
Fifth District Banks Strengthened.
In each section of the district
surveys are under way or have been
completed for the purpose of disclosing
the availability of normal bank credit.
The committee expressed its gratifica-
ton with the efficient and prompt as
sistance supplied by the Reconstruc-
ton Finance Corporation, to various
banks within the reserve district. The
committee believes it advisable to call
attention of the banks to the import
ance of studying the requirements that
must be met to secure loans from the
corporation and of preparing them
selves we'll in advance of increased de-
mandS for funds.
The committee also believes it i'm
porCant to interpret to the public that
If bank of this reserve district appeals
for a loan from the Reconstruction
Finance Corporation it should not be
taken as an indication of instability Of
the applying bank. II such impression
should prevail it would increase the dis
from the corporation or from the Fed
eral Reserve Banks in anticipation OF
the growth of credit demand.
The committee felt it was necessary
to call upon responsible business men
and agriculturists of the district to dis
courage needless or Wilful Sniping al
banks as being unwarranted by the facts
of the banks condition and policies and
being productive of uneasiness and fear
leading to needless actions by deposi-
tors. Recent disclosures of the extent
to which subversive elements have de-
hberately spread false rumors were dis
cuSsed. 1t was the cons enSus of opinion
of the committee that responsible
people could do much to discourage the
malicious or ignorant from spreading
unrest concerning banks, although To
date this reserve district has been rela-
lively free from this evil.
THE committee approved in princi.
pie methods of cooperation with the
national committee which has beer
formed in New York, representing the
Federal Reserve Bank of New York, ths
American Acceptance Council. and tht
National Association of Credit Men, II
develop extensively the proper use O.
the trade acceptance as a means o.
supplying banks with rediScountablt
paper. The committee considered 6
number of specific cases of application.
to banker members and others for loan!
of a capital nature. The committee
felt compelled to draw a sharp lint
between applications for credit Of {
nature that bank might ordinarily ex'
tend and requests for credit of capita
type" said Mr.. Graham.
Referring to farm mortgages anC
farm credit, Chairman Graham saiC
that there was general review OF tht
farm mortgage situation and OF the CO.
operation being developed between Fed
eral land banks, insurance companies
mortgage bankers, trust companies, anC
others interested In or owning mort
cages, TO prevent avoidable foreclosure
of farm mortgages and distressed sale
Of lands and chattels with detriment Il
going properties.
or city mortgages only as a last resor
is being encouraged throughout the Dis
trict and is being urged upon all STATE
and local committees. There was re
view of the provisions of the Fedora
Farm Loan act, establishing the Fed
eral land banks and the intermediat
credit banks, and of recent amendment
TO the Reconstruction Finance Corpora
ton act bearing upon the development
of additional agricultural credit facili
ties that may be needed in sections o.
the fifth district.
S3,00O,00O Credit Move Considered.
Special attention was devoted to tn
feasibility of organizing a S30000 00
agricultural credit corporation, as al
agency OF rediScount with the Fedora
intermediate credit bank, with capita
funds supplied by the Reconstruction
Finance Corporation. A special com
mittee en- farm mortgage and farm
credit is being organized under tn
chairma nship of A. L. NJ. Virgins o
HartSville, S. c.
Activities of special committees il
the principal centers which are en-
deavoring to reC.crV distress arisin
from foreclosures Of city mortgages, pre-
vent the development Of harsh policie
and produce general Improvement @
the urban mortgage situation, occu
pied considerable time of the commit
tee, Mr.. Graham added. Agreemen
was reached to bring TO the attention
of the City Committee plans that hav
been developed in other centers.
The provisions Of the Federal HON
Loan Bank act, which was signed b
President Hoover last week, were con
sidered in relation to the home mort
gage situation Of the fifth district
Upon the appointment of the boar
of directors of the Federal Home LOAF
Bank system, it is expected that tn
committee will give consideration +
the problems involved in establishment
of home loan bank to serve the state
In the District.
In considering the extent to whicl
TuIfnlSr uy0vxx Y1roipcts thrOnphoa1t th