New-York tribune., 1920-12-03
Governors Ask
Corporation Oh
Foreign Trade
Conference Suggests Fed
eral Government Finance
Credit System for Buy
cr i'll Foreign Nations
Cite Farmers Distress
Also Advise Liberal Pol
icy by Reserve Board
in Loans to Producers


HARRISBURG. Pa, Dec. 2.-The
Governors conference to-day adopted
committee report urging the Federal
government tc create finance cor
oorstioa which through loans to for
sisn countries will permit export of
American foodstufs and other prod
acts 70 relieve the critical situation
confronting the nations farmers. The
repor. further urged the Federal Re-
serve Board 70 advise all banks to
sGopt- liberal policy OF renewals on
'srmers' Indebtedness.
Tnc action was taken on the recon-
uenGation of q committee Of five Gov
ernors appointed yesterday. who pre-
sentei = report which follows. in part:
The financial situation IN the whole
country : cause for the gravest con-
cerr. hut not for despair. All lines of
business are realizing heavy losses
but she swift decline Of prices OF farm
ceuinao odities 10 far below the cost of
production threatens q national dis
sster The situation demands infinite
patience and forbearance and supreme
wisdom and courage. Nothing but evil
can result from anger or fear
We believe that the tenseness of
tire situation can be relieved in several
ways
Remedies Are suggested
-. Let every individual do all he can
70 neip and encourage his neighbor
Ie. here be complete mobilization of
TIE financial and spiritual assets Of
every community. Neither God nor
government ought to be asked to help
those who do not first make every ef-
.ort possible to help themselves There
ought to be a united effort in every
community 20 keep any good man from
being destroyed because ne cannot i'm
nedia.eiy meet his obligations. Under
existing conditions it would be the
. force any debtor into bankruptcy il
b. the mos. liberal indulgence he
would De able ultimately to pay.
-. Let the Federal government Gre
ate q anance corporation OF some sort
.aa- viii enable the people OF other
,snds 20 obtain from US the commodi-
ties they so greatly need, but for which
they are not able to make immediate
payment We believe such a corpora
ton . be entirely feasible and that its
mere creation would substantially help
me situation.
E,Io D. -. 4
se urged and authorized to advise all
banks 20 adopt a liberal policy OF re-
nsvals. The law authorizing six
months credit on foreign p4per should
be literally construed and renewals for
Ike period should be freely granted
wherever consistent with other solv-
ency. The real wealth Of the country
IS unimpaired 1t would be a suicidal
policy 70 destroy this wealth by per-
emptory call OF loans
Would Amend Reserve Law
II necessary the Congress should
r. once amend the Federal reserve law
50 a. 20 temporarily supply additional
currency and afford more time in which
"Ve believe that the general adop-
ION by individuals and By the govern
uen- Of the policies herein suggested
would not only afford material aid but
would a. once supp ant the gloom and
re tssr Of the present with that con
adence 50 vital 70 wholesome and sue
csssfVl business"
Governor Goodrich, Of Indiana, 3
member If the committee, said he did
-ot entirely approve the pnraseology
O .ae report, though he was heartily
Z accord With its purposes.
O.aer members of the committee
we're Governors Beckett Of North Caro-
INA. Harding Of Iowa, Holcomb Of
Connecticut ard Parker Of Louisiana.
Creation of a national commission
representing both state and Federal
goye-nmer.s 70 revise and simplify tax
avs "a. advocated by Governor VIII
ian 6. Sproul Of Pennsylvania in an
sid-ess
Tax Law Uniformity Asked
sfos- s.a.cs will requirc new tax
.eg.sz.ic-l within me next few years,
Governor SIroul said, pointing out the
ao7.saoilty of making tae new laws
inform n the everai states and pre-
rsa'ing duplication Of Federal and
stz.e ewes
kecosn rreriations should be made to
eee1gress ~ such a commission, .he
Dozefnof Z. looking To modification
o. teoerzi laws, So that me states may
Dc protected IN their revenues and
leir ,a1s.ion sources saved from de-
D-sf-cn r. ederal collections.