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W. P. G. HARDING, GOVERNOR PAUL M. WARBURG, VICE GOVERNOR FREDERIC A. DELANO EX-OFFICIO MEMBERS WILLIAM G. McADOC ADOLPH C. MILLER SECRETARY OF THE TREASURY . CHARLES S. HAMLIN CHAIRMAN JOHN SKELTON WILLIAMS ~ H. PARKER WILLIS. SE~ft'rARY FEDERAL RESERVE BOARD COMPTROLLER OF THE CURRENCY :1 SHERMAN P. ALLEN. ASST. SECRETARY AND fiSCAL AGENT WASHINGTON ADDRESS REPLY TO FEDERAL RESERVE BOARD July 3, 1918 .. Xl039. Dear Sir: The attention of the Federal Reserve Board has been called to the fact that because of the limitations of Section 5200 of the Revised Statutes, rr~~Y of the ~ler national banks are unable to take care of the needs of their customers engaged in the canning business. about to begin and the Board is inforiT~d The canning season is now that additional accommodation covering a period of about four months 1 will be required by rrany concerns engaged in this business. It appears that although the canning industries have sold their output in advance, they are unable to realize on these .. sales until deliveries can be made. !n the meantirr~ they are in need of funds with which to purchase waterials and to meet payrolls. The increased cost of labor and materials and the deiTands for larger production ~ake their needs greater than usual. As the canning industries are located rrainly in the small tm\~S 1 few of them have established connections with larger banks in the cities, and have relied hitherto upon local accommodation. The suggestion has been nade that the city banks extend direct credits to the canners upon the recommendation of local banks. While the Federal Reserve Board does not feel warranted in recommending to member banks in the financial centers that credits be extended to custom0rs of other member 8 Xl039 ., ....... ...&:. - 2- banks in the circumstances recited, it does feel however~ that i t would ba desirable to have the facilities of the Federal Reserve System rr.ade available as far as practicable in the present emergency" to afford some measure of relief, it is suggested that In order .• therefore, y~~ c~nicate with some of the larger banks in your district and ascertain if they would be willing to cooperate with the srr.aller banks in the canning districts by extending temporary cradits to such canning enterprises as rray be able to make a satisfactory showing as to their financial conditiono Very truly yours.~ Governor. The Governor, Federal Reserve Bank, 9
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