64 THE AGRICULTURAL BLOC 



fioient, but in the case of live stock, three years 

 or more is necessary. 



The Commission stated as its opinion that 

 a policy of restriction of loans and discounts 

 by advances in the discount rates of the Federal 

 Eeserve Banks could and should have been 

 adopted in the early part of 1919, and that had 

 this policy been adopted much of the expansion 

 and speculation of the period following the war 

 could have been avoided. 



When finally the Federal Eeserve Board 

 adopted the policy of restriction of credits in 

 1920 expansion in currency and prices had 

 reached such a point that deflation was ac- 

 companied by great losses and hardships. 



The Commission believed that a policy of 

 lower discount rates in greater liberality in ex- 

 tending credits could have been adopted in the 

 latter part of 1920 and the early months of 

 1921, which would have retarded the process 

 of liquidation and spread the losses over a 

 longer period where they could not be avoided. 



The growing demand for temporary relief 

 brought about through the efforts of the Farm 

 Bloc the revival of the War Finance Corpora- 

 tion which has served a highly useful purpose 

 in providing credit and direct loans, saving 



