The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-10-19
Secretary of Agriculture Mere,
dith Charges Bankers With
Refusing to Loan
Money.
SPEAKS AT CONVENTION
Says T7iIers OF the Soil VIII Lose
Much Money if Forced to Mar
ket Crops at Present
Prices.
[By Ralph Couch, United Press Staff
-.. COrrespondent1

[By Ralph Couch, United Press Staff
Correspondent
WASHINGTON, Oct 19.-Secretary
of Agriculture Meredith today charg-
ed farmers are being denied needed
credit by bankers in favor of luxury
producers. He made the charge in
a speech at the opening session Of
the annual convention Of the Ameri-
can Bankers association.
More than 5000 bankers from all
sections of the United States heard
s~TMerestfft '-s ~
Farmers of the country win lose
81, 50O000,O0O il forced to market
their crops at present prices, Mere
dith warned.
The only point at ISSUE" he said,
"is this: Shall the farmer, whose pri-
mary interest is involved, be afforded
such credit by local banks as will
enable him to market his crop in an
orderly fashion,"
Meredith declared the average
price Of all crops on October 1 was
in 1919.
"In the spring of 1920, when they
were planning their operation for the
JIGSSuJ SCdSoD, lAS ldIIClo WCl Q
confronted with a very difficult stu
ation," he said. .....
"There was shortage Of farm
labor estimated at 33 per cent. The
cost of everything the farmers had
to buy was exceedingly high and
there was uncertainty as to the fu-
ture price of farm products. All these
things added to the hazard of the
undertaking, but the farmers did not
hesitate. They realized the respon-
sibilities resting upon them to meet
the future food requirements Of the
nation, and, il spite Of difficulties,
they succeeded in producing one of
the largest crops in history
High prices ruled while farmers
were planting and cultivating the
bumper crops they were asked to
produce, Meredith recalled.
"The farmers of the United States
this year have produced 3,216,192 900
bushels of corn" he said "At pres
e1t prices they would receive for
their crop approximately one-half
billion dollars less than it would
bring on the basis of prices prevail
ing on October I, 1919. The cotton
crop this year totals 100000 bales.
At existing prices it would lack more
than one-third Of billion dollars
bringing as much as it would have
brought year ago.
Cotton seed, which sold year ago
for $50 ton, on September 1 sold
for $40 a ton. The wool clip this
year aggregated 259,3o7 900 pounds
At prices prevailing in September
last year. it would have brought $133,-
100000, but this year, at current
prices, it would bring only $73,ooo,-
Geo.
Apparently well founded COM
plants have reached the agricultural
department from farmers who have
| been denied credit for essential pro-
ductive purposes while the producers
of expensive luxuries and the dealers
in them have been Accommodated. I
do not intend to imply that these
bankers have maliciously chosen to
handicap agriculture by the refusal
! of credit which they might have ex-
| tended, but rather that they yielded
to the temptation of a larger imme-
diate income from loans for less fun
damental purposes. 1t is more than
probable the bankers who followed a
short sighted policy will in the long
run be the losers