Evening star., 1932-02-08
WAR ON BOARDING
GIVEN IMPETUS
Finance Pool Operations Be.
gun-Farm Loan Division
Asked of Dawes.
BY the Associated Press.

BY the Associated Press.
Movements to place 81 500, ,000, 900 OF
boarded money into circulation and to
expedite aid to farmers from the Re-
construction Finance Corporation gained
impetus today in the Capital.
Col. Frank Knox, publisher of the
Chicago Daily News, who has been
designated by President Hoover to head
the anti-hoarding campaign, began a
round Of conferences with Government
officials Immediately upon his arrival
Meanwhile a congressional delegation
from MidweStern agricultural States re-
quested the Reconstruction Corporation
to set up a division in its organization
especially charged with making loans to
agriculture
Headed by Representatives Knutson,
Republican, of Minnesota and Strong
Republican, of Kansas, the delegation
consulted with Charles G. Dawes, presi-
dent Of the corporation, for more than
an hour
KnutSon said afterwards the pro-
posalS had been received in a friendly
spirit He added Dawes had informed
AAAAiA SOoNP4l Via DIlldll,
banker, would be the corporations rep
reSentative in Minnesota.
States represented at the conference
were Iowa, Minnesota, North Dakota,
South Dakota, Nebraska Kansas, Mis-
souri,. Colorado, Oklahoma, Montana,
Idaho and Wyoming
Another recommendation was:
That the operations of the corpora
ton with respect to loans and advance
ments to country banks and other agen-
cieS engaged in financing the agricul-
tural community in the Middle West be
segregated and divorced from the large
city banks, which do not deal directly
with the farmers in the making of
leans, to the end that the making of
loans and advancementS to such rural
banks or loan agencies may be accom-
plished without influence or direction
from such city banks"
Norbeck Calls on Dawes.
The group also recommended setting
up loan committees in the II States.
The Loan Committees would consist
of men closely affiliated and thoroughly
cOnversant with the rural banking and
credit needs of their States
Senator Norbeck, Republican, of South
Dakota called on Dawes and made ar
rangements for a conference tomorrow
between corporation officials and a
number of Senators and Representatives
from the Northwest.
Norbeck said the general situation y,
the Northwest with particular reference
to agriculture would be discussed.
The Reconstruction Corporation laid
out a regional structure, with II
loan agencies designated, and made
its first commitment. This was a
pledge to absorb any unsold part of a
$15,000,000 deoenture issue which the
Federal intermediate Credit Bank is
Offering today 1t had in hand from
the Treasury sI50,000,000 of the $780,
100000 capital the Government is fur
nlShing it.
Will Function Soon.
Within a few days the IT agencies
designated will be functioning in Off
ceS of the Federal Reserve Banks or
branches. Others will be announced
later. Those decided on will be in
Atlanta, Boston, Chicago, Cleveland
Dallas. El PaSo, Kansas City. Mo-; Los
Angeles, New York City, Philadelphia,
Portland, Oreg.; Richmond. St. Louis,
Salt Lake City, San Francisco, Seattle
and Spokane.
These agencies, each equipped with
an advisory committee, including local
representation, to consult with the
manager will pass upon loan applica-
tions and submit recommendations to
corporation headquarters for final ac-
tion Full data will be made available to
prospective borrowers at these branches,
Continued on Page 2, Column l)