The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-30
FARMERS BANKS
NEXT ON PROGRAM
OF PARTY LEADERS
Administration to Take
Up Rural Credit
Laws,
MANY PROBLEMS
ARE INVOLVED
Likely That Constitutional Ques.
tions Will Be Raised Against
Project - Trust Legislation
Delayed in Favor of Laws
Which Will Aid Devel-
opment of Agriculture.
Especial to The Times-pispatch.


dent Wilson and his administration
leaders have decided that right OF way
for special legislation at this session
OF Congress shall be given to consid-
Grafton and enactment of rural farm
credit laws as an adjunct to the cur
rency law.
Trust legislation, subordnated to the
demand of the farmers of the country
for better banking facilities, is to come
later in the session. but it is not to
interfere with consideration of plans
to establish agricultural banks to help
out the farmers.
Official statements or those close to
the White House that there Is to be
no hurry in the passage OF laws af-
fecting trusts and their effect on le-
gitiTnate competition, Is said to-day by
congressional leaders close to the adj
ministration to be based on the pleas
of the Farmers Alliance of the South
ern States and of tho National Grange
Association. which is powerful through
the North and West.
Promise VIII BE Kept.
Southern Senator'S were led TO sup
port OF the Glass-Owen administration
currency bill through administration
promises that there should follow at
TINS session n supplemental bill pro-
viding for n government control and re-
cognition of special currency laws for
the agriculturists to enable them to
get money on easy terms for the plant
ing, harvesting and shipment OF their
crops.
Following this pledge. the House
Judiciary Committee has been switched
from consideration of trust legislation
problems to consideration of legislation
within the Constitution, whereby the
government may sundcrwritc sons
scheme of local farm banks as an al
juno. of the national banking system
issue government notes to pass as
money through such banks. and pro-
tect tho bonds to be Issued on which
such farmers bank notes must be Is
sued.
The questions involved are whether
such farmers bank notes, being notes
of community banks ana not national
bank notes, enter into interstate COM
merce. whether "A State not asking for
farmer bank privileges shall be forced
TO accept the farmers bank notes of a
State that may use them in the de"
veiopment OF the States resources.
There was no question of constitu-
tionality of the national banking act
az against the national bankers" sug-
eested Representative 'Wingo, Arkan-
sas, a member OF the House Banking
and Currency Committee to-day That
act nelpe'l the bankers. When il comes
to helping the farmers, the question
OF government aid is made one Of con-
stitutionnlity.
Land of Country behind II.
If the government can make of an
ass sociaticn. n bank, q government de-
pository. taking charge of government
money way cannot the government
make an individual government de-
pository and let him be In control of
such distribution? Where is the con-
stitutional difference? Farm banks
would be built on this system, and
farm bank notes would have behind
them the land OF the country. There
is the right Of the government to take
the land
Representative Andrew J. Voistead.
of Minnesota. ranking Republican
member Of the House Judiciary Com
mittee, said:
Until President Wilson has present :
Cd his plan for agricultural banks
throughout tho country ! cannot tell
exactly what this government will face
in the way of Il constitutional tight
/ have beon LED to believe from those
close to the head of the table that
the Judiciary Committee will be called
on to pass Judgment on the constitu-
tionality Of Special farm loan curren-
cy notes.
THE Old greenback went through on
the strength that il was Interstate COM
merce, representing exchange of value
among the States with the inherent
right in the government to Issue money
Some such plan must be adopted with
the farmers banks, to give such notes
standing under the law.
"It is possible that there may be
forged legal link connecting the
farmers banks with the national bank
ing scheme recently enacted. 1 am
rot opposing, but am uncertain how
that can be doce with the possibility OF
some States objccting. What Will be
come then of all States rights argu-
ments on the acceptance Of promises to
pay unless backed by the government,
md where goes the rights of tho
States to impose tax on purely intra-
state commerce? All of the business
done by such farmer banks, neces-
sarily community banks, will be in
trastate purely. These are questions
that must be determined because our
country is different from all foreign
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