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Show CONSERVE OUR I CREDIT, ADVICE I ER01JARDI1 I Governor of Federal Reserve System Makes Annual Report Re-port to Congress . ! NATION DECLARED TO HAVE PASSED CRISIS Problem is to Restore Europe's Ability to Buy From WASHINGTON. Feb. 16. Wartime expenditures and tho profound modifications modi-fications of the country's ecouomla system make it Imperative, Governor Harding informed congress today In the annual report of tho federal rc- serve board, that "the utmost care be WM taken to conserve our credit and pre-serve pre-serve tho basis of our prosperity," to avoid the extreme conditions prevailing pre-vailing In other countries. "Upon tho United States In a larg measure," tho governor declared. "thi solvency and flnanc'al stability of many other countries depend CRISIS PARSED. In readjustment of business, the countr . Oov. rnor Harding asserted, ls generally recognised fus having passed pass-ed the crisis and In looking to the future "a spirit of greater confidence prevails." "Because of the accumulation of foreign commodities, however, for Tvhloh thero ls no market," Governor Hardlns: continued, "countries which have been sending their surplus products prod-ucts find they have nothing marketable marketa-ble with which to pay for their lm-ports lm-ports from us. Ml ST HELP EUROPE. ' We find ourselves there-fore." he maintained, "with a large export trade LN which is being paid for only In part LN by a great portion of the world and this trade is fast approaching a point Ll where it may be cut drastically to the most vital essentials unless the nor- mal credit and buying power of Eu- LH rope can b restored." This restoration, he added, is only LH ir American raw materials g0 for"-ward for"-ward steadily over an sxtendd period against Ion? time credits M : l SSARY OPERATIONS By means of corporations organized LjlH under the Edge act for financing for- clpn trade, the governor contended LN long time credits may be granted to sl finance exports not only from tho LH "'f'"1 States, but from foreign coun-tries coun-tries as well All these operations he- Ll described s necessary for the solu-tion solu-tion of the necessary worfd problem (ross earnings of all federal re- LH serve banks combined, tho governor Ll reported. Increased from $102,000 OOu sH in 1919 to $1 SI. 000,000 In 1920 Over LH S2 per cent of these earnings camo from paper discounted for member Ll banks, tho average dally holdings of LH which aggregated $2,530,000,000 dur- Inp 1920 as compared with $1,908 - Ll ,000 .-i ."'19 i FIGURES 1 J N Rediscount operations between fed-oral fed-oral reserve banks Including bills pur- chased from other federal reserve LH banks durintr the year amounted to Compared with $2 - LH 658.254,000 tn 1919 and $66O.63.00O during the year 19 IS. Adding to these transactions tho bills purchased and allotted to other federal reserve bank by the federal reserve bank of New York the governor said the total in-ter-dlstrlct movement of bills during tho year agpresated 84.408,688,000 a compared with $3, 397. 000 for 1919 and S835.49S.O00 for 1918. The hoard has no further amend-ments amend-ments to the federal resorvo act t.i suggest to congress at this time. Go -ernor Harding announced It desires. ' however, he concluded, to express its L opposition to any legislation which would impair the ability of the fedora? reserve banks to exercise the proper control over their credit transactions oo |