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Show i Plea of Texas Growers Is "ioiL-o Answered by Governor of ?Ja Federal Reserve Board daj Ajgl WASHINGTON. June 4. Governor Harding of the federal reserve board, teel in a statcment declares that the board win was opposed to the use of "drastic llfcn and oppressive measures" in bringing 6'cij about a reduction of long-standing ban loans. The board's views were expressed in tvljo response to a letter from Rep. Gar- fere "er. Democrat, of Texas, who said that :ofd Texas wool and Moliair growers fcar- cd efforts of the fedei'-al reserve banks olic to hasten deflation might prove dls- Instrous to them since many of their loans soon must be renewed on account ac-count of a dr.ought. The growers thought these loans in f (rlit not be renewed, it was ex- plained, because of the campaign againHt "frozen credits" and loans on so-called non-eauontlxds. Gov. Hardlnp explained that while the matter waa one for purely local determination, he believed the banks wore not forcing settlement of loans where such action would handicap production of any commodity. The pledge given by representative bankers at a rpcont conference hero to support the policy of reducing loans s? uas not Intended to cause indiscrlml-natc indiscrlml-natc curtailment, "Mr Harding said. He said the board has not attempted to define non-essential loans, adding that In each instance, the reserve banks must decide whether the loan would result in further Inflation. 1 |