The Mena weekly star. (Mena, Ark.) 1904-1977, 1920-12-09
TWO PLANS TO AID
u. S. FARMERS
Federal Land Banks Could Give Pro-
ducers Credit and Revived War
Finance Corporation Would
Open Europe's Markets.

Washington, Dec, Rehabilita-
ton of the war finance corporation to
open European markets to American
agricultural products easily can be
accomplished Definite assurances to
that effect were given today by Eu-
gene Meyer, director of the finance
corporation during the war, in series
OF conferences he had today at the
capitol with senator's representing
agricultural states.
David F. Houston, secretary of the
treasury, under whose department the
corporation operated, has maintained
a position of uncompromising hostil-
ity to revitalizing that organization,
declaring that the American people
are demanding that the war machine
be completely wrecked, instead of set
IN motion again.
Mr.. Meyer is willing to undertake
the task of re-establishing the war
finance corporation, should congress
authorize it, upon condition that its
activities would be limited exclusive
ly to opening up European markets
American farm products thru the es-
Establishment of credits for foreign
buyers.
Senators Believe Plan Feasible.
Senators with whom Mr.. Meyer
talked asserted that the limitations
proposed would not be a serious handi-
cap, because the matter of agricul-
tural credits from the domestic stand
point is in a fair way of settlement.
The latter phase of the farmers ex-
isting trouble, according to plans
which meet with the approval of the
treasury department, is to be taken
care of by allowing the federal land
banks to lend to cattle and agricul-
tural associations on harvested grain,
farm implements and cattle.
In other words, the farmers, il the
foregoing plans are adopted, could
look for relief and better market
prices from two directions. The war
finance corporation would provide
European nations with means of buy
ing agricultural products here, and
loans to American farmers thru the
federal land banks would allow the
farmers to hold their crops back for
better prices than the present. which
they claim are below the cost of pro-
auction.
Eur RG IL Eager 10 Duy.
That European nations are not only
ready but eager to buy here the prod
ucts which are now drug on the
hands of the American farmers is
conceded by everyone familiar with
conditions. Secretary Houston adj
mitted that much several weeks ago
when delegations of farmers from
many parts of the United States were
here demanding that he re-establish
the war finance corporation to estab-
iish credits here for the foreign ma
tions. But Secretary Houston insist
ed then that European nations could
mot give securities that would war
rant the American government in es-
tablishing credits for them here. He
cited the decision of the Brussels con-
ference to the effect that the limit of
credit on European states and NUM-
CAPABILITIES had been reached. Those
who favor re-establishing the war
finance corporation do not take that
view
Capital Enough on Hand.
Mr.. Meyer told Senators Kellogg of
Minnesota, Hitchcock of Nebraska,
Capper of Kansas, and others with
whom he talked today that the war
Enance corporation when it ended its
activities, turned back into the United
States treasury 35 million dollars.
That would serve as a nucleus for be-
ginning operations again, but the gen.
cral plan of financing, which the adj
rocates Of II have In mind, Is that of
selling bonds and other credits turn
ed over to the United States by Eu-
ropean nations and municipalities
buying here.