The Holt County sentinel., 1920-11-19

The statement issued by the A. r.
| u. +. says in part Iaat one OF the
primary causes Of the disastrous de-
cline in the crop prices was the defla-
ton policy Of the government. APP
parently II was the thought Of govern
ment officials that higher loan rates
would eliminate the specuatOr. IL was
thought that food spectators would
unload and the prices Of food-stuffs
would decline.
II didn't turn out this way. Specu-
lators, with wide margins Of profit,
were able to outbid farmers, who work
on a very narrow margin Many
banks in agricultural districts have
sent their money 10 financial centers
in order TO obtain higher rates Of in
tercst. The statement points out
though that some did not do this, pre-
ferring to support the producer, even
{ their own profits might be thereby
lcsscncd.
In one respect the government plan
worked prices fell. But everybody,
thinking that prices would 20 still
lower, stopped buying. What had been
planned "a, a gradual decline in prices
became a rout. The cotton and wool
market arr but two examples. Suffi-
cicnt credit would have enabled the
producers To- hold their products,
price. would have stiffcned and buy
ing would have been renewed.
The statement goes on 10 say that
the American public accepts the idea
that this dcflatiun should take place.
I { 4. e. a
that IL Will take two bushels Of wheat,
two bales Of cotton, etc, etc, to liq-
uidatc a war debt which when contract
cd could have been paid of with one
uf these units
The cause Of second Importance in
the crop situation is the absence of
usual markets. Germany and Austria
are large buyers Of the American
farmers surplus products.
II means were found for the opening
of these markets they would take up
the surplus and prices would adjust
themselves.
-Four remedies IL the presnet situ-
alton are included in the Farm Bu-
rcau statement. II j. proposed that
credit be extended to Germany and
Austria equal TO funds held by the
Alien Property Custodian after pay
mcnt of claims. This credit TO he
used in tho purchase Of raw material
The restoration Of the War Finance
Committee i, another proposal This
would facilitate foreign banking. The
third remedy h an amendment 10 the
Federal Reserve Act giving the Fed
eral Reserve Board power TO classify
loans and vary ratcs on basis Of cs-
>cntiality.
An amendment, to the Federal Farm
Loan Act H. also proposed, which would
give the Farm Loan Board authority
Ia issue and sell on open market, TO
discount through the Federal Reserve
System, securities based on warehouse
receipts This would allow the farm
cr who desires To- market his cotton,
grain, or other non-pcrishables, a
period of twelve months in which TO
sell Il instead Of his having 10 dump
Il upon the markc, ~ AZ present. He
would take his crop to the warehouse.
take n receipt and obtain from bank
~ per cent of the value Of the crop.
Such an amendment would put him In
direct contact with money. lie would
be able 10 finance his own crop in
stead of being at the mercy OF tho
SPECTATOR "a he now IL.
The statement concludes with the re-
mark that the final solution must come
through the organization OF farmers
on n democratic and cooperative
basis with n centralized director Of
sales,