The Leon reporter. (Leon, Iowa) 1887-1930, 1916-01-06
CONGRESS, THE FARMER AND
THE REST OF US.

Twenty two agricultural state, in
Guiding Missouri, Illinois, Ohio, Indi-
ana, Iowa, Kansas, Nebraska and ev-
cry southern state east of the Mlssis-
sippi except Florida, grew more slow
ly during the last census decade than
did the nation as whole. 1t is of
the first Importance that the govern
ment should pass laws giving the
farmer every facility for helping
himself, just as the needs of the
merchant and manufacturer have
been met by legislation permitting
the esta blishment of national banks,
creating the Federal Reserve System,
insuring uniform treatment of ship
pers by railroads, and the like.
The Republic has called attention
to the need of a cotton standards act
and grain grades act. AS matters
now stand the farmer sells his pro-
ducts without knowing just what he
is selling. He not only receives less
than they are worth for products of
superior quality, but is deprived of
the incentive to produce the best
which an adequate grading system
would supply. To these laws should
be added a statute providing for the
licensing of bonded warehouses for
the storage of non-perishable agricul-
tural products,
No business community can pros
per to the full unless the laws make
1t possible for business men to bor-
row money freely upon the security
of goods in hand which are awaiting
sale upon the market. Our legisla-
tors have fully recognized this in the
case of the merchant and manufac-
turer; the whole structure of COM
mercial banking is the result But
we are just waking up to the fact that
the farmer is as much business man
as the manufacturer or merchant and
that we have ignored his needs in
making laws for American business.
It ought to be as easy for farmer
to borrow money on nOn-periShable
farm products ready for market as
it is for the miller to borrow money
on St. Louis elevator certificates
showing him to be the owner of a
given number of thousands of BUSH
els of wheat of certain quality.
The department of agriculture,
through it's expert staff, has carefully
studied this problem, and, as re-
suit, Secretary Houston recommends
the passage of permissive ware
house act authorizing the establish
ment of bonded warehouses for the
storage of farm products. The certi-
ficates of such warehouses would be
bankable security anywhere.
A warehouse receipt ought to as
sure the purchaser or lender upon it's
security
That the merchandise called for is
in the warehouse, to the order of the
person to whom the certificate is
made out.
That it's quality is vouched for by
an expert inspector.
That it is adequately insured.
That it is stored under conditions !
which guarantee it against deteriora-
ton.
Bonded warehouses, licensed by |
the government and subject to strict
inspection, can meet the
foregoing conditions. The note of a
Missouri farmer, secured by certifi-
cate from such warehouse, would be /
good bankable security in Massa-
chusetts or in California. Such a
law would make the farmers paper
just as acceptable as the bills of ex-
change on merchants, which form the
great bulk of the commercial paper
Of the world.
The cotton standards act and the
grain grades act would only involve
the setting up of standard by the
government, just as it does in the
case of the fineness of our gold coin.
The permissive warehouse act would
,imDlV c3uSp tho government IN cor |
,ify to certain facts which determine
he value of warehouse certificate
n the money market. Can the
great agricultural interest of the
United State ask less?-St. Louis Re-
public.