New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-02-28
SUBSTITUTE RURAL
CREDIT BILL OUT
Democrats in Hasty Effort
to Shunt MCCumber
Plan Aside.

Washington, Feb. 27.-ln a hasty Ell
fort to shut aside the McCumber plan
for a system of rural credits, which
was attached to the agricultural appro-
priation bill. the majority leaders OF
the Senate brought from the Banking
and Currency Committee to-day IA
vorable report on the Hollis rural cred
its plan. This was done with the idea
of inducing the House to accept the
Hollis plan and substituting 1t for the
McCumber plan when the measure goes
to conference.
The Hollis bill which was approved
by the Senate committee to-day, does
cot call for government aid. 1t au-
thorizes the establishment Of sys-
TEN of rural credits as a subsidiary
/ 10 the Federal Reserve system by the
appointment by the Reserve Board OF
n farm loan commissioner, who shall
have supervision over the federal land
banks and national farm loan assocla-
tions which NAV be organized under
the act
The organization Of farm loan as
sociations by not less than five persons,
for carrying on the business Of lend
ing on farm mortgages, Is authorized
The bill also provides for the estab-
lishment Of twelve land bank dis
tricts, 10 be made up of the various
farm loan organizations within the ter
ritorv. at the head of which shall be
federal land banks with a subscribed
capital stock of not less than $4,000
The organization and operation OF
these institutions. according TO the bill
are TO be under the direct supervision
Of the Federal Reserve Board, in much
the same manner that the Federal Re-
serve banks are now operated.
Ii was admitted by the admlnlStra-
ton leaders in the Senate to-day that
the eleventh hour adoption of the Hol-
lis plan was merely TO prevail on the
House to reject the McCumber plan
Senator McCumber being a Republic can,
and his plan calling for federal aid, to
which, it is said, the President IS OPP
posed.
The Democrats are admittedly in a
hole. They do not wish TO go on rec
ord as opposing rural credit legislation
and they do not wish a Republican ia
carry off the fruits of victory after
their own failure TO enact Legislation
for the establishment of rural credit
system. :,
That the President undoubtedly
would veto the agricultural appropria
ton bill if il comes to him with th'
McCumber rural credits rider is ,th'
belief of House leaders, who wrestlet
all afternoon to eXtricate themselves
from an embarrassing situation. Ma
iority Leader Underwood said to-nigh
he hoped that a compromise might b'
worked out by Monday. He said HI
was without advices as to just the sor
of bill the administration will accept
but admitted that the situation wa
troublesome and that it jeopardizet
the agricultural budget.
The seriousness of the House situa
ton became evident late to-day whel
Postmaster General Burleson, the ennis
sary of the administration in al
House troubles, rushed to the Capito
and went into consultation with Nh
Underwood, Chairman Glass of the Cur
rency Committee, and Chairman Leve
Of the Agricultural Committee. TIL
visit of Mr.. Burleson followed the &C
ton of the House in refusing 10 SEN
the agricultural bill direct to confer
ence. Instead, the bill was referred I
the Committee on Agriculture, and i
will be brought back into the Hous
on Monday and the entire rural credit
subject will be opened up to debate.
Chairman Fitzgerald, of the Appro
priations Committee, said that undo
the rules some one might move to con
cur in the McCumber amendment afte
five minutes debate.
This amendment apropriates $40
100000, and that's $4,000 900 a minut,
! object" said Mr. Fitzgerald.
Several other objections were hear
over the chamber and Mr.. Lever the
endeavored TO suspend the rules an
send the bill to conference.
Chairman Lever said the committe
would meet Monday TO take up III
McCumber amendment, which provide
straight out government aid systei
Of rural credit loan and appropriate
| Sl0,000,0O0 at the outset. The Pres
dent some time ago informed certai
House leaders that he was opposed I
such a plan, and if the McCumber pre-
vision remains in the bill a veto
almost certain. A veto would brin
on an extra session to pass the suppl
q. bill. unless a resolution can be pr
| through continuing the appropriation
of last year for the Department c
Agriculture.