The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-01-01

mobilization or utilization of the re-
sources of the country people them
selves.
The chief difference of opinion ars-
eS over whether there should be spe-
cial aid furnished by the government.
There seems to be no emergency
which reqnres or justifies govern
rnent assistance to the farmers direct
ly through the use of the government
cash or the governments credit. The
American farmer is sturdy, independ-
emit, and self-reliant. He is not in
the condition of Serfdom or semiserf-
dom in which were some of the Eu-
ropean peoples, for whom government
aid was extended in some form or
other during the last century. He is
not In condition 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 Aemrican farmers 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
prosperous as the merchants, the tea
cheers, the clerks, or the mechanics. 1t
is necessary only that the government
conditions permit, provide machin-
so far as geographic and physical
cry for the benefit OF the agricultural
classes as satisfactory as that pro-
Vided for any other class, and this the
government has attempted and is at
tempting to do.
1t is the judgment of the best stu
dents OF economic conditions here
that there is needed to supplement
existing agencies a proper land-mort-
gage banking system operating thru
private funds, just as other banking
institutions operate, and this judg-
ment is shared by the leaders of eco
nomic thought abroad. The national
banking system up to the present
time has labored under restrictions
imposed by law which made it impos-
the problems in the most effective
way. State banks with fewer res
trictions, with smaller capital require
ments, and ability to lend on real es-
tate have established more intimate
greater assistance. Likewise certain
agencies, such as building and loan
associations, insurance and mortga-
ge debenture companies, and the CO.
operative credit associations recently
created by State legislation in Texas,
Massachusetts, New York, and Wis
consin, operate to extend capital to
the farming districts, and thereby in
measure, tend to cut down the rate
of interest.
The Federal Reserve Act and Agricul-
tural Transapctions.
Al. l1,,
commonly called the Federal reserve
act, was under discussion in Congress
the matter of farm credits was con-
Sdered and debated, but it was de-
cided that the subject as specific
program should be separately dealt
with in another act. The Federal re-
serve act was passed with view to
the Improvement of the banking con-
ditions OF the country in the inter
est of all classes; to the restoration
of normality in banking; to the estab,
lishment of a reserve or banking pow
er which could be utilized in times Of
emergency; and therefore with a view
to. secure good banking at all times
and to prevent panics. 1t is not q
bankers law or a business mans law
or manufacturers law or farmer:
law; it is a law for all classes-for al
the people. However, there were i'll,
corporated into the act several very
important provisions which had II
mind specifically the needs of thC
farming classes and the possibility o.
extending banking facilities to The
rural districts.
1t was specifically provided that ;
! Federal reserve bank might "discoun
notes, drafts, and bills of exchange
arising out of actual commercial trans
actions-this is, notes, drafts an bill
of exchange issued or drawn for 'gri
cultural, industrial, orcommercial pur
poses." The Federal Reserve Boar'
vas given the right to dcfue tn
character of paper thus eligible 10
discount 1t was further distinc>l,
provided that nothing in the &C
should be construed TO prohibit sucl
notes, drafts, and bills of exchanS
secured by staple agricultural pro
ducts, or other goods, wares, or mer
chandise from being eligible 70, sue
discount" 1t was provided that tn
ordinary notes, drafts, or bills sd
turity at the time of discount of no
mitted to discount should have ma
more than 90 days, but that note:
( drafts, and bills drawn or issued TO
, agricultural purposes or based on Inv