The Birmingham age-herald., 1920-12-07
DRAFT RESOLUTION PERMITTING BANKS
 ID GRANT CREDIT
Resolution to Be Reported To- day Also Provides for Re- vival of the War Finance
 Corporation
By Associated Press


 Washington. December 6.--Revival Of
 by the federal reserve board permitting extension by banks of ''liberar' credits to farmers would be directed in a joint
 resolution drafted late today by the Sem ate agricultural committee. The resoiu- 1 tions will be reported to the Senate to-
 morrow by Senator Gronna of North Da-
 kota. the agricultural committee chair
 man. who will ask for immediate con- sideration.
 l Members of the committee drafting the
 resolution expressed confidence that
 enough votes were assured to bring about it's prompt passage, but members of the finance committee indicated that they would ask that it first be referred to them for consideration inasmuch as the war
 finance corporation was created under a bill drawn by ther committee. Restoration of the war finance corpor-
 alton to furnish financial aid to farmers also would be directed in a concurrent resolution presented today in the House by Representative Byrnes, Democrat, Of South Carolina.
 The Senate agriculture committee de- cded to report it's resolution as a com mittee measure, hoping thereby to save time. With unanimous consent under the Senate rules the resolution could be read twice in one day and placed on the call endar for passage.
 APPROVAL NOT REQUIRED Senator Norris Of .>eDraska, 9 member of the agriculture committee, first pro- posed a concurrent resolution which does not require approval by the President, but other members objected on the
 ground that such a resolution would not be strong enough While not antici- pating the action of the President, demo- cratic senators made clear fheir intention of voting to override q veto if necessary. The Senates committed ee's-resolution de- clares that Unprecedented and un- paralleled distress exists among the farmers because Of their inability to mar
 ket their products at prices equalling the cost of production, and that the people of Europe are in dire need of these products but unable to purchase be- cause of existing financial conditions. The resolution further recites that banks have been unable to extend credit to farmers so they may hold their products until they can be sold in 9 fair and req sonab ble market" They follow the res olution's directions, which declare:
 "The Secretary of the Treasury and members of the war finance corporation are hereby directed to revive the actfy1- ties of the war finance corporation, and that said corporation be at once rehabii- ttated with the view of assisting in the financing of the exportation Of agricui- tural products to foreign markets.
 erhe federal reserve board is hereby
 directed to take such action as may be necessary to permit the member banks of the federal reserve system, in accord ance with law and consistent with sound
 banking, to grant liberal extension of credit to the farmers of the country Upon the security of the agricultural pro- ducts now held by them by permitting the rediscounting of such notes of ex- tension at the lowest possible rates, of interest"
 Opposition to exsensSoI of government credit to n.gric,lltural E,teres's unless imilar relief is provided for other lines oS business was expressed today by Chairman Haugen of the House agri- culture committee. The plight of far
 rers viii be considered immediately by the committee which Represept tative Haugen said probably will group bills into one measure for introduction in the House.
 Mir. Haugen expressed the belief that way could be found to aid all legiti- mate lines of business that are suffering financial losses because of slumping prices and tight credit.