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FARMERS' SITUATION DESPERATE, DECLARES BANK SUPERINTENDENT PHOENIX, Nov. 15 (R)-Describing the condition of the farmers and agricultural sections throughout Arizona as "desperate," P. T. Hammons, state superintendent of banks in his annual report as of October 1, made public today, said that the farmer's general obligation here after must form a basis for his future credit. "At the present time the farmers generally have secured their obligations by executing loans secured by roal and personal property. No further security is available for future relief," the report says, continuing: "The farmer is the very nucleus of our existence, prosperity and bust ness activity. If his operations are to be throttled or strangled for want of financial relief, there will be no substantial change in the generat business condition. The livestock industry very largely in the same posttion. "I am firmly convinced that our government can extend no greater stimulant to the general welfare of our country than to provide immediate relief to our farmers. Our local f1nancial institutions can go on further * *" Referring to the policy of the department in regard to failing banks, the report goes on: "Our efforts have been directed mainly to assisting ana encouraging the banks in meeting the trying situation that has confrontea them during the past year. We have endeavored to build up the strength of the banks by a policy of constructive criticism. "Had this department adopted an uncompromising attitude toward the banks and pursued a policy of rigidity with reference to frozen credits, excessive loans, depleted reserves and depreciated values, it would have resulted in the suspension of many banks which have stop been able to restore their reserves, get their paper into better condition The report recounts a year of growth reflecting the continued and increasing confidence of the people of Arizona in their banks, "caution in the face of adverse physicial conditions which we cannot control," and employment of additional help to "provide for closer inspection." Three bank failures during the year are brough: under review, two in Yavapai county, the Prescott State bank, Commercial Trust and Savingst bank of Prescott, and the Bank of Duncan, of Duncan, Greenlee county.
