The Birmingham age-herald., 1914-12-11
Secretary of Department of Agriculture Discusses Rural Credits in His An nual Report
NEW BANKING LAW FRAMED TO TAKE
 CARE OF FARMER
Credits Needed Beside Those Thus Provided For Should Be Financed by Private Capital, He Says
SECRETARY HOUSTON

Washington. December 1o.--That
 there Is no emergency which justihcs government assistance to fnrmers di-
 rectly through the use of government 1 cash or credit was the position taken
 by Secretary Houston Of the depart
 ment of agriculture in discussInr rural
 credits In his annual report submitted today to President Wilson. Secretary
 Houston's statement wns regarded ns | Indicating the policy of the ndminis- tratfon.
 Secretary Houston pointed out that the new bank law takes just and par
 ticular knowledge of the faAners TO-
 quirements.r Ho suggested that any
 credit needs of the agricultural com
 munity beyond thoso cared for under the
 federal reserve law, should be cared
 for by system of "eo-operative credit
 associations" financed with private
 funds. by means of which the combined
 credit of farming communities could
 be utilized, and by a system of land
 mortgage banks. likewise. privately capitalized
 There seems to be no emergency
 which requires of justifies government
 assistance to the farmers directly through the use of the governments cash the governments credit" said the report. "The American farmer IS Isturdy. self-reliant and Independent lio Is not in the condition of serfdom or semi i-serfdom in which were the Et- lpcpeaa peoples for whofa povernuert aid was extended in some form or oth CT during the last century
 Advocating Land Mortgages In advocating a land mortgage bank ing system and system of cooperative credits associations the report asserted that the use of tho funds loaned for productive purposes the farms cov- cred by the mortgages should be in- sisted upon.
 MT. Houston's report reviews the in- vestigation of the marketing and dis tribution system, and while the study Is not yet sufficiently finished to ad- init of final conclusions the work thus far shows the need of reorganization
 of the distribution process. He says: "During the present grass season, for example. Chicago has received Mexican. Canadian and Florida cattle at about the same time. Steers raised in Califor- nit by an Oregon operator have been shipped through Denver to Omaha and their beef sent to points on the At lantic coast. Hogs raised in Illinois and sold at Indianapolis have been slaugh- tered at Boston and part of their xl fA Michigan dressed veal calves expressed to South Water street commission houses at Chicago have been returned to the identical shipping point from which they came to fill orders from local retail markets"
 Secretary Houston asks Congress for an additional emergency appropriation of several million dollars on account of the recent outbreak of the foot and mouth disease among cattle. He said that if the interval between the last and the present session of Congress had been longer the department would have been without sufficient funds to meet the. situation.
 Pursues Former Policy "The department" he said. has pursued its former policy of purchas- ing diseased and exposed cattle at an appraised value and of slaughtering them and burying them. It has estab- lished a very strict quarantine. The
 expense of this task will be very great
 and it will be necessary to ask Congress
 for an emergency appropriation of sev-
 eral million of dollars. The interests at
 stake are vast and justify any reason
 able expenditure"
 The report sets forth the activities
 of tho department in establishing stand
 ard grain grades, and in the initial
 administration of the new cotton fu-
 lures law which the Secretary calls
 the sfrst definite systematic, legal ap-
 proach to the solution of difficult prob
 lems in this field of distribution" The
 Secretary recommends consideration of
 Legislation to establish a permissive
 warehousing system for grain and cot
 ton. He pointed out that the warehouse
 facilities for cotton in the south are not centralized.
 "If the warehouses now in existence,
 said the report, were remodeled SO as
 to comply with the, underwriters' re-
 ouirements, and were bonded, and 1T |adeouate business methods were adopted fine financing of the cotton crop would be materially improved. Such system would furnish relief in times or ener- eency and would form a useful part Of inc normal distributive system. It ts r-ohahIa that A federal law for per