Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-05

the ruinously low prices the farmer Is recetv-
ing for his products and the high prices which
tho consumer is paying for what he buys Tor
his table. The farmer complains that he Is
raising hogs at a loss. There is complaint IN
tho cities that the breakfast table bacon and
ham and butter and eggs are at top-notch
figures Who is getting the difference?
Ono objection which will be raised in Con-
press to reviving the War Finance Corporation
is that efforts of Congress are pledged to the
abolition as speedily as possible of all the
war bureaus. The farmers for their part IN
sst that their present crisis is more acute
than the one raised by the war, and that they
need financing more than ever before.
The Federal Reserve Board. the financiers say,
is not prone to look approvingly upon farther
imitation of credit. since all its efforts for
the past six months have been directed to
defatfon. Secretary Of the Treasury Houston.
addressing theN bankers convention in this
city, recently, said: 1.-THE Treasury has no
money TO lend and no money to deposit ex-
cept for government purposes. 1t is not in
the banking business and should not be. 1t
is borrowing money periodically to meet cur
rent obligations in the intervals between large
tax payments, at a cost of about per cent"
The latest bulletin of the Federal Reserve
Board. discussing the farmers troubles. dis
puted the contention that the farmers are
being denied credit. 1.-THE board is advised"
the bulletin says, that credit has been steadily
available for the successive seasonal require
ments Of agriculture as well as for the needs
of cofhmerce and industry and that there is
no ground for expecting that it's availability
for>these purposes will not continue"
The statement goes to say that the lead
ing banks, representing 70 per cent of member
bank resources, have reported to the board
that between January and October they have
Increased their loans for agricultural, indus
trial and commercial purposes by an amount
exceeding one billion, eight hundred millions
of dollars"
THE disturbances in prices and demand"
the bulletin continues (which have recently
manifested themselves in markets for various
agricultural and other commodities not only
IN the United States but in other countries are
inevitable and unavoidable consequences of
the economic arrangements occasioned by the
world war. The United States continues to
have a heavy volume of exports. although for
eign demand for certain agricultural staples
has somewhat decreased But the chief market
for our raw and manufactured products is at
home, and our present huge crops of immense
value may be expected gradually and in reg
3 ualr course to from producers to
"The recent census. reckoning our popula-
tfon at los, 100000 emphasizes anew our own
capacity as consumers. irrespective of the de-
mands of other countries"
X X
What the politicians are afraid of, in this
prospective concerted movement in behalf of
the farmers. is that if relief is not afforded
the agricultural interests in the full measure
demanded farther political unrest and agita-
ton may be expected from that class. Yet.
these politicians who are in Congress and who
shall be> in places of authority in the
administration, will have to consider cold facts
and figures of government resources. burdens
of government, fixed charges of appropria-
tions and all those things.
And back Of everything, the inanciers say.
stands the boyle of continued imitation of
credit, from which the country is now suffer-
ing and trying to be relieved through defa-
ton, and upon which the lowering of the
cost Of living largely depends.
Copyright. 1920. by The Washington Starr