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949 FEDERAL RESERVE BOARD STATEMENT FOR THE PRESS Release f o r SUNDAY MORNING PAPERS October 17, 1920. October l 6 , 1920. In view of the ' representations which have r e c e n t l y been made to the Board as to the u n a v a i l a b i l i t y of c r e d i t in a g r i c u l t u r a l s e c t i o n s the Board requested information concerning c r e d i t conditions throughout the Country from t h e Chairmen and Governors of Federal Reserve Banks a t t h e i r usual autumn conference here t h i s week. The Board i s advised t h a t c r e d i t has been s t e a d i l y a v a i l a b l e f o r the successive seasonal requirements of a g r i c u l t u r e , as well as f o r the needs of commerce and i n d u s t r y , and t h a t t h e r e i s no ground f o r expecting t h a t i t s a v a i l - a b i l i t y f o r these purposes w i l l not continue. « The p r e s e n t inpcoved c r e d i t s i t u a t i o n i s due i n p a r t t o the timely s t e p s taken l a s t spring, following conferences between the Board and Governors and Directors of Federal Reserve Batiks t o provide c r e d i t f o r crop moving requirements, and i n p a r t to the subsequent improvement in t r a n s p o r t a t i o n reported from a l l d i s t r i c t s except in a few l o c a l i t i e s . Between January 2 and October 1 of the p r e s e n t year about 800 l e a d i n g member banks from a l l s e c t i o n s of the country which report t h e i r condition t o the Board weekly and w h i c h r e p r e s e n t approximately 70 per cent of member bahk resources, have increased t h e i r loans f o r a e r i f f u l t u r a l , i n d u s t r i a l and commercial purposes by an mount exceeding $1,800,000,000. This g r e a t i n c r e a s e i n the c r e d i t extended t o t h e i r customers has i n the main been made p o s s i b l e by the acconmodation extended member banks by the Federal Reserve Barks. 950 - a . x-2031 During the same p e r i o d , the twelve Federal Reserve Banks have i n c r e a s e d t h e i r h o l d i n g s of a g r i c u l t u r a l and commercial paper by more than $ 5 0 0 , 0 0 0 , 0 0 0 , and from January 23 t o October 1, 1920 i n c r e a s e d t h e i r i s s u e s of Federal Reserve n o t e s by over $ 4 6 0 , 0 0 0 , 0 0 0 . At the same time, Federal Reserve Banks h a v i n g surplus funds have extended accommodation t o Federal Reserve Banks i n a g r i c u l t u r a l and l i v e s t o c k d i s t r i c t s b y mean® of d i s c o u n t s , a g g r e g a t i n g on October 1, over $225,000,000. The d i s t u r b a n c e s i n p r i c e and demand which have r e c e n t l y m a n i f e s t e d themselves i n markets f o r v a r i o u s a g r i c u l t u r a l and other commodities, not o n l y i n the United S t a t e s but i n o t h e r c o u n t r i e s a s w e l l , ~ a r e i n e v i t a b l e and unavoidable consequences o f the economic derangements o c c a s i o n e d by the World War, The United S t a t e s continue to have a heavy volume of exports although f o r e i g n demand f o r c e r t a i n a g r i c u l t u r a l s t a p l e s h a s somewhat decreased. But the c h i e f market f o r our raw and manufactured products i s a t home, and our p r e s e n t huge crops of izmiense v a l u e may be expected gradually, and i n r e g u l a r course ito move from producers to consumers. The r e c e n t census, reckoning our p o p u l a t i o n a t 1 0 5 , 0 0 0 , 0 0 0 emphasizes anew our own c a p a c i t y a s consumers i r r e s p e c t i v e of t h e demands of o t h e r c o u n t r i e s .
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