The Birmingham age-herald., 1914-12-27
Position Made Clear in Of ficial Utterance of Secre- tary Houston of Depart
 ment of Agriculture
NO EMERGENCY WILL JUSTIFY DIR B CT
 GOVERNMENT AID
Says Farmer Is Not in Position of Serfdom Which Required Action by the European Govern ments-Ragsdale Group
 Is Dissatisfied

Washington December 26-(Special9 Any light and lingering hope that the administration might tolerate. if not in dorse. rural credits legislation by this Congress has been dispelled by an official utteranee to the effect that there is no emergency which justifes government as sistance direct to the farmers through government cash or credit. For O. IT year the rural credits advocates from the south have felt that no such help would be extended. and the militant group in the House banking and currency committee, headed by Representative Ragsdale. has been outspoken in it's dis sa atisfaction.
 While the President in person simply has expressed regret that consideration Of such legislation cannot be considered advisable at this session, the views of the administration are expressed in full by Secretary Houston of the department of agriculture as follows:
 No Emergency to Justify H
 Closely related to production and dis tributon of farm products Is the securing Of capital by farmeres on better terms. This problem has attracted the profound attention of the country and still awaits a full solution. The difficulties arise partly from the diffusion and sparseness Nof the rural population. partly from the failure of proper business adjustment. and pertly from the inadequacy of the security which part of the farming population normally can offer for loans. The prob lem is one of extending the banking ma chinery and facilities more intimately into the country districts for the convenience and the assistance of the rural popula- tion and of the effective mobilization and utiliza ton of the resources of the country people themselves
 The chief difference of opinion arises ever whether there should be special aid furnished by the government There seems to be no emergency which requires or justifes government assistance to the farmers directly through the use of the government cash or the government s credit The American farmer is sturdy independent and sef-relant He is not in the condition of serfdom or semiserfdom in which were some of the European peo- pies. for whom government aid was ex- tended in some form or other during the last century. He is not in the con dition of many of the Irish farmers for whom encouragement and aid have been furnished through the land-purchase act. As a matter of fact. the American farm CTS are more prosperous than any other farming class in the world. As a class they are certainly as prosperous as any other great section of the people: as pros- pc, ous as the merchants. the teachers, the clerks or the mechanics t is necessary only that the government, so tar as geo. graphic and physical conditions permit provide machinery for the benefit of the agricultural classes as satisfactory as that pr vided for any other class, and this the rnment has attempted and is at to do.
 the judgment of the best stu
 economic conditions here that
 needed to supplement existing
 a proper land mortgage bank
 tenn operating through private
 just as other banking lnstitu- perate. and this judgment is by the leaders of economic
 abroad. The national bank tenn up to the present time has ti' under restrictions imposed by
 ich made it impossible for the banks to solve the problems
 most effective way. State banks
 wer restrictions, with smaller
 requirements, and ability to
 real estate have established
 timate touch and have perhaps
 greater assistance. Likewise
 agencies such as building and
 sociations. insurance and mort
 benture companies, and the CO.,
 fe credit associations recently by state legislation in Texas iusetts. New York and Wiscon-
 srate to extend capital to the
 rtn tnfG fIpr al. in o r.N tend to cut down the rate est.
 n the national banking law,
 fly called the federal reserve under discussion i'll Congress
 tier of farm credits was con and debated, but it was decided
 c subject as specific pro- Rramme should be separately dealt with in another act. The federal re- serve act was passed with a view to the improvement of the banking condi- tions of the country in the interest O. al lasses to the restoration of nor mality in banking; to the establishment of a reserve or banking power which could be utilized in times of emer- geney; and therefore with view to se- cure good banking at all times and to rrevent panics. It is not a bankers law or a business mans law or a manu- lecturers law or a farmers law: 1t is g law for all classes--for all the peo- pie However, there were Incorporate ed into the act several very important provisions which had in mind specifl- cally the needs of the farming classes and the possibility of extending bank ing facilities to the rural districts
 Provisions for Farmers
 "It was specifically provided that , federal reserve bank might 'discoun notes.f drafts and bills of exchange aris ing out. of actual commercial transac tions--that is notes, drafts and bills O exchange issued or drawn for agricul tural, industrial or commercial purposes or the proceeds of which have been use, or are to be used for such purposes The federal reserve board was given tn right to define the character of pape thus eligible for discount It was fur ther distinctly provided that nothing ii the act should be construed to 'prohibi such notes. drafts and bill of exchang secured by staple agricultural products or other goods. wares or merchandis from being eligible for such discount It was provided that the ordinary notes drafts. or bills admitted to discoun should have maturity at the time of dis count of not more than 90 days. but tha notes drafts and bills drawn or issue for agricultural purposes or based O. live stock might have a maturity no exceeding six months Not only is pape arising out of agricultural transaction made eligible under the act, but it f given longer maturing period thai other forms of paper. This apparent dis ortmination arose naturally out of th