The Sisseton weekly standard. (Sisseton, Roberts County, S.D.) 1892-1929, 1920-09-17
OF
CREDIT TO
FAR NJ ERS
is SCORED
SUCH POLICY WILL RESULT IN
HltihEK PRICES NEXT
WEAR
LEAVE FARMERS OUT
North Dakota Bank Head and
CuamIne of Land Bank At
tack Banker. Policy

BISMARCK, N. D.-Nigorous dis
sent is offered by Manager r. w.
Catl,rc OF the Bank of North Dakota
with the policy of the ninth district
federal reserve bank in seeking to
force farmers TO sell their wheat at
present prices. Such policy, de-
ciares MIR Cathro, by compelling
farmers to sell Immediately, at
prices below the cost OF production,
will simply result in making prices
higher next year, as many farmers
will forced out of business. And
ii prices are forced higher next year
then ell that may be done this year
toward deflation will be undone.
More yer. declares MIR. Cathro, il
is a'iegitimate function" of the re-
serve banks to carry raw materials
sech as wheat and cattle, until there
Is * demand for 1t on the part OF the
manufacturers. The farmers" says
Mr.. Cathro. s'instead of being left
out. should receive first considera-
ton"
Policy Give. Dealer Advantage
Mr.. Cathro makes the grave
charge that the present policy OF the
reserve banks and of the large city
banks "seems to be to compel the
grain to be forced upon the market
in large volume, thereby depressing
the cash market, thus giving the
terminal elevator companies an op-
portunity TO by this cash wheat at u
diacoNnt. on which they may later
realize immense profit when the
crop movement eases up and the
millers are compelled to go to them
for their requirements
Mr.. Cathro points out that the en-
cuse of the banks for forcing the
farmers to liquidate their notes is
that the moving of the crop may be
tinanced--in other words, that the
city banks may have money to FL
nance the terminal elevators in their
purchase OF grain And he contends
that the banks should, with inn
mensely greater benefit to the coun-
try, finance the farmers to hold the
grain until the actual users of the
grain demand it and offer living
price for it,
Force livestock Sales, Quamme
Says
Although Mr. Cathro does not
mention the recent order of the
ninth federal reserve bank, his state
ment is manifestly challenge of
the reserve bank s order. The First
National bank of Minneapolis inter
preted the reserve banks order as
meaning that the banks will have
first call on the farmers money $50
that we, in turn, will be able to
further help the movement of farm
products to the markerts by loans
to all grain merchants"
E. G. Quamme, president of the
ST. Paul Federal Land Bank, declar-
ed that this order will force live
stock men to sell their stock before
it is properly fattened, and grain
growers to dump their grain on the
| market in such quantities that the
gamblers will be able to force the
price away below the cost of produc-
tion. He says:
THE fact is, there isn't enough
money to go around, but instead of
the agricultural industry getting a
| fair share, the spectators are get.
| ting the best of it ~
Credit Plans Absent
Mr.. Cathro, in the following
statement. takes the same view oi
the situation as Mr. Quamme:
Cup to the present time no deiin.
lite plan seems to have been worked
out for the financing OF credit ac-
| comodatiCns to the farmers. The
| financial interests including the
| federal reserve board are still pre-
| dieting that the banks would be able
to carry the crop movement. as
though that event were still wholly
in the future. In the meantime most
farmers have been able to secure nc
credit Accommodations at all, either
for harvesting operations or for
holding their grain on the farms
and therefore have to accept what
ever price is offered
at appears that the contention
| that most bankers in the big ftnan-
rial centers hold of the problem Of
financing the crop movements does
not reach down TO the farmer at ali.
IN fact the policy adopted bv the
federal reserve board and approved
nv leading bankers and financial 'r-
terests annarent'y aims to dA--'ve
earmers 1T c-edit on unso'd e-"s,
the rurnose he'ne to comrel te-.r
=" seN ard nav up the lows .eev
| m ado NJ tho hovjwniw~ ~ xho mn a o