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2-1729 / OPT 1919 NOV 19 MEMPHIS TENN GOVERNOR W P G HARDING WASHINGTON D C NATIONAL FARMERS UNION IN SESSION HERE ASK I F YOU REFERRED TO WITHDRAWAL OF TWO MILLION BALES FROM MARKET OR I F YOU MEAN PRICE . HIGH ENOUGH AND REGIONAL BANK MONEY WILL BE WITHHELD I F HIGH PRICE IS SOUGHT TO BE HAD BY FARMERS T T McELDERRY FOR COTTON COMMITTEE. * • 8 0 P Y X-1729-A TELEGRAM FEDERAL RESERVE BOJSRD Washington . November 19 , 1919 T . T. McElderry, Cotton Committee, National Farmers Union, Memphis, Tern* Federal Reserve Board does n o t undertake to f i x p r i c e of c o t t o n or to express an opinion a s t o m e r i t s of p r e s e n t p r i c e , i t s only concern i s to administer the Federal r e s e r v e system i n sound and "businesslike manner, to see t h a t paper rediscounted f o r member t a n k s i s adequately secured, and t h a t Federal r e s e r v e banks i n extending accommodations s h a l l observe the r e q u i r e ment of t h e law t h a t the a f f a i r s of the Federal r e s e r v e banks be administered f a i r l y and i m p a r t i a l l y and without d i s c r i m i n a t i o n i n f a v o r of or a g a i n s t any member bank or banks, and t h a t t h e r e s e r v e banks extend t o each member bank such advancements, d i s c o u n t s and accommodations as may be s a f e l y and reasonably made with due r e g a r d f o r the claims and demands of other member banks« The Board does not b e l i e v e t h a t the r e s o u r c e s of Federal r e s e r v e banks should be used d i r e c t l y or i n d i r e c t l y f o r s p e c u l a t i v e purposes or f o r f a c i l i t a t i n g the hoarding of commodities f o r such p u r p o s e s . tained that Board has c o n s i s t e n t l y main- g r a d u a l and. o r d e r l y marketing of crops i s proper p o l i c y and b e l i e v e s t h a t banks should extend t o producers such accommodations as can be s a f e l y made t o c a r r y t h i s p o l i c y i n t o e f f e c t , thereby avoiding s a l e s a t s a c r i f i c e p r i c e s which u s u a l l y r e s u l t from f o r c i n g undue volume of commodities on market a t one time W. P. G. HARDING, Governor •
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