The Washington herald., 1920-12-26
CONGRESS ALIVE
REMEDY NEED ,
FOR FIRM CREDIT
Hearings Consider Status
OF Industries-To Work
Out Solution.

To what extent has American ag-
riculture been damaged by credit
contraction7 The question Is one
which has given members of Con-
gress serious reflection since the
hearings Of two weeks ago when
delegations representing wool, grain.
cotton and other interests appeared
before committees Of the Senate and
House of Representatives pleading
for legislative relief. With products
of the soil and cattle ranges tied
up by debts or inactive markets
and the planters and stockmen be-
ing forced to curtail their plans for
next year, the prospect OF a slow
up in production has been a source
of unhappy discussion in the lobbies
at the Capitol.
of Georgia; Walsh, of Montana;
Gamer, McCumber, Kenyon, Norris,
THOMAS Kellogg and others of the
upper branch, as well as scores of
members of the House. have par
ticipated in the extensive debates
on questions of embargoes, pro-
tective tariffs and reinstatement OF
the War Finance Corporation as
alternative means Of enabling the
agricultural interests to obtain
prices for their commodities that
will save serious losses. The con-
ditions of these industries, particu-
larly as to wool and live stock,
| were pronounced as desperate by
Eugene Myer. jr., former managing
director Of the War Finance Corp
grafton, who declared that unless
relief was given the country would
| face a crisis in 1921 of alarming
proportions.
| Imports Hurt Prices.
| In Senate addresses it was pointed
out that enormous quantities OF
grain from Canada and wool and
livestock products from Australia
Central America and South Africa
were being imported, forcing prices
down upon the home commodities
to such an extent that not only were
the American producers unable &C
realize as much as they had paid
out but in many cases were unable
to market their products at all
Senator Norris called attention u
the disastrous conditions threaten
inS the agricultural industry in
his State of Nebraska; Senators Mel
son and Kellogg called attention u
the critical affairs among farmers II
Minnesota, and the news from Kan
sas, Oklahoma, Utah, Wyoming
Montana, and other Western states
conveyed in kilograms. letters an
petitions, bore such gloomy fore
bodings of ruin that the War Fl
nance bill was rushed through bot
houses and sent to the Presiden
for his signature.
Extends Credit.
The bill provides for the exten
sion of credit abroad so as to enabl
b farmers to export their surplu:
e Tariff and embargo bills are still
before Congress. President Wilso
y is said to look with disfavor upo
. the bill to revive the War Financ
Corporation and also the tarih pro
posal.
II it comes to relying upon ger
a eral embargo to relieve the strsi
o upon the farmers and legisla.io
7, that will remove the evil of specu
= lation so as to improve marketint
n the relief thus provided will bright
h en- the skies for 1920 crops an
>; clips. What the farmers need mos
o however, is credit from the bank
II Congress members are agreed. Thel
= is no form of legislation by whic
'e bankers can be forced to los
y money to the needy farmers, but II
d structure can be added. 1t Is though
I'd by legislation that will make far
s. paper more enticing to the banker
le This is considered possible. and hi
been the subject of a general dl
d cussion. {.
~ Just Return Essential.
e. when the farmers and stockm'
of the country find themselves Ia
n ing the prospects of cheap whea
ar wool, hides, meat, cotton and I
81 bacco," said a western Senator ye
s. terday, they are not very likely
sc Law plans for any great increase
is production. The intensive progre
ed of agriculture during the past tN
g. years, spurred by the war, cam
IN be continued if 1t means all wo
m and no pay. and nothing could
more detrimental to the count
than Ssuch impairment of the We
- base Of all our prosperity.
so it behooves the bankers a
the business men of the country
- lend every encouragement posslt
he to the farmers and stockmen und
nd these conditions. or they themselV
-, will suffer.
" Millions of dollars are needed
In the nations producers with whi
rs, to buy implements, fertilizer, re
ed for stock and clothes and suppl
generally. Some Of these produce
are fortunate enough to have
Vn capped debts and will pull throue
en- but some of them are in very b
In condition. The injury which pre-
ent market conditions has infiict
In upon the industries of the rural Sd
"o tions probably will leave its stal
nd wears 70 come THAT Congress W
On, deIiver 70 tbo farmer some We
mp honefu, msasure Of relief early ,
ter New Year is certain"