Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-12-29
FARM LOANS GO TO
WEST AND SOUTH
Congress Has Tens of Millions for
Land Development, but Lit
tie for Waterways.

Special Correspondence Of the Evening Public
ledger
WASHINGTON, Dec IS.
nCR old Philadelphia friend George W.
~ Norris, former Director of Wharves,
Docks and Ferries and row head of the Fed
eral Farm Loan Board, is the author of an
unusual fnanciering proposition now before
Congress, which is expected to have the right
of way in the House when it reconve,es on
January % In amended form Commissioner
Norris's plan went through the Senate just
before the recess. and If the Banking and
Currency Committee, spurred on by Secretary
SIcAdoo. could have had its way it would
have passed the House under a special rule
and now be law. But at tire last moment
trouble started in the House and the pro-
pcnents Of the measure, rather than stand an
all-night session and the possible loss Of q
quorum. capituated and let the matter go
over.
What Mr.. Norris wanted was $500, ,00o, 900.
In a letter to the Secretary of the Treasury
he explained that the farm-loan act, which
was one OF President wilson's pet measures.
being approved by him July II, 1916. prior
to the last presidential election. was intended
to furnish capital for agricultural develop
ment': that under it loans had been made by
Federal land banks to farmers to the amount
| Of S30000,oo0; that prior to November last
the demands of investors for farm-loan bonds,
which we're 10 supply the capital for the
| operations of the board, were IN excess of
| the supply; but that thereafter due possibly
| TO the second Liberty Loan agitation, n radi-
! cal change set in, leaving to the board the
| alternative OF going to the United States
| Treasury for sufficient money to make APP
| proved loans for which the proceeds OF bond
| sales were insufficient, The commissioner
| suggested to Mr.. McAdoo and Mr.. McAdoo
passed 1t on to the Banking and Currency
| Committee and to Congress. that whereas
! "the twelve Federal land banks have APP
| proved loans, which have not yet been closed,
| to an amount approximating S700o0.000
awaiting completion of title and other for
malities. and had applications pending on
November 80 for further loans to an amount
exceeding S65, 900, ,000," therefore to relieve
| the situation act should be passed au-
thorizing the Secretary of the Treasury. "in
his discretion" 10 purchase at par and ac-
! crued interest, with any funds in the Treas
| ury not otherwise appropriated. from any
| Federal land bank farm-loan bonds issued by
| such bank" 1t was submitted that the Sec
retary's discretion to buy these Federal land
| bank bonds should not exceed $l0O, 900 900 q
| year for two years-a mere matter of $780,
100000 as originally laid down, The COM
mittee reporting the bill said It was strictly
| war-emergency measure" and quoted
Commissioner Norris In proof Of that state
| ment.
States Favored by the Measure
1 While the House had no opportunity to
discuss the suggested loan on its merits and
! under the rule will doubtless have little
chance when It does come up next week. there
| was some discussion Of It In the Senate, q
discussion, however. confined almost exciu-
sively to that. Informative but limited publi-
cation. the Congressional Record. In this
debate It appeared that the sponsors of the
Farm-Loan Board idea were not altogether
satisfied that the board was likely to be a
seif-sustaining arm Of the Federal Govern
\ ment but now that Congress had given It
| 100000 to start its machinery, and Il had
issued bonds and made loans to the extent
Of $4,000, 900, they did not see how they
could turn back. even II the Treasury of the
| United States had to come to the rescue.
Asked " the New England States were taking
any interest In the Farm-Loan Board the
supporters of the bill promptly responded
| that many farmers of New England and the
coastal States had applied for loans; that
they had faith In the enterprise equal to that
| of their southern and western brethren
Figures were produced to show how the loans
were going. From Pennsylvania. for In
stance. there were seventy-four applicants,
whose loans vPet Grsnted ~ fossI *
o1seyeoe. Reelry yrnFie 2 > Greet ~