Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1920-12-24
FARMERS FAVORED
BANKERS TESTIFY, AT CONFER
ENCE AT ST. CLOUD OF FARM
Frs AND BANKERS
Especial Journal-Press Servicel

Especial Journal-Press Service)
St. Cloud, Dec. Is: Present credit
stringency is not directed against the
farmers of the Northwest but on the
contrary, the farmer is being favored
above commercial industries in the ex.
tension of financial assistance by city
as well as country bankers, according
to the testimony of every banker who
spoke yesterday at the farmer.banker
conference held at the Elks hail. The
meeting was the last Of series Of four
held throughout the state this week at
the request Of Senator L. E. Potter of
Springfield, president of the Minnesota
Federation of Farm Bureaus.
Senator Potter presided at the con-
ference. In opening the meeting, he
stated that he does not blame anybody
but everybody for the present condition
of credits and finances, that the bankers
and business men as well as the farmers
must all do their best to overcome the
difficulties which have been brought
about by the abnormal conditions of the
past few years. The country bankers
have good understanding of the needs
of the farmers, and their relations with
their farmer patrons have been most
cordial, said Senator Potter.
Colonel G. H. March of Litchfeld told
the meeting that he is a lawyer and a
banker as well as farmer, and that he
believes it required as much ability to
succeed as farmer as it does to be a
successful banker or lawyer. But the
difficulty is not so much in producing
and harvesting the farm crop as it is
in successfully marketing it after it has
been harvested. The farm bureau or
ganization, said Col. March, is the best
medium that the farmer has yet secured
to aid him in marketing his crops and
deriving all of the profits of his labor.
The farm bureau will help the farmer
to bridge the wide gap which now exists
between the price received by the farm
er and that which is paid by the ulti-
mate consumer.
But an understanding Of the financial
situation was uppermost in the thoughts
of those attending the meeting, and this
problem was brought to the foreground
by the question:
els the Federal Reserve Board dis
eliminating against the farmer and
forcing him to iquidate at the present
time.''
This query brought an emphatic de-
NAL by Curtis L. Mosher, assistant fed
eral reserve agent Of the Minneapolis
Federal Reserve bank, who stated that
fully IS per cent and often as high as
80 and IS per cent of the paper dis
counted by the Minneapolis Federal Re-
serve bank consists of farmers notes.
OF the $s3, 154, 10000 worth Of negoti-
able paper held by the Minneapolis Fed
eral Reserve bank, said Mr.. Mosher'
$61, ISL 100000 is in farmers notes, and
only 1905, 100000 in commercial paper.
Not a cent Of line elevator and milling
company loans is included in these fig
ures, he stated in response to question
as to whether the loans on farm pro-
ducts were loans made to the farmer or
to those to whom the farmer shipped his
grain.
Much misunderstanding was caused
by the wrong Interpretation Of circulars
sent out in August by the Federal Re-
serve bank, urging liquidation Of all oh.
legations as fast as the marketing Of
farm products would allow the farmers
to take care Of their notes, said Mr..
Mosher. Naturally it was the desire Of
the federal reserve banks then and it is
now that obligations be liquidated as
promptly as possible. Under existing
conditions, they desire to obtain the
payment of all debts that can be paid.
But there has not been any tendency or
any desire to work hardship on the
farmer by forcing him to market his
products to meet his obligations. And
it can readily be seen that the iquida.
ton Of present obligations is the only
means of relieving the tightness of the
money market. The real curtailing Of
credit for some time past has not been
in loans to the farmer, but in the lend
ing Of money for non-productive pur.
poses. But in any event, said Mr.. Mosh-
er, the crisis Of the situation has passed,
and even though conditions are not a
favorable 40 might be desired, the out
look for the future 10 promising and
steady return to normal credit condi-
lions may be looked for.
As further evidence that tho banks
are taking care Of tho farmer first, Mr..
Mosher stated tho obligations iauidat.
ed in the ninth federal reserve district
in the past three weeks amounted to
$l5.000, 10000, and that practically the
whole Of this sum consisted Of COM
mercial paper.
Harry N. Owen, publisher Of Farm,
Stock and Home, of Minneapolis, advo.
Gated the passage by the Minnesota leg
islaturc Of an act similar to the South
Dakota loan act. He cited the loan Of
Is million dollars secured by the Stand
ard Oil CnmnanY a loan which VIVA