The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-12-04
SATURDAY, DECEMBER 1, 1920.
NO FEDERAL FARM LOAN.

Everyone realizes the unfortunate po-
sition of the farmers in this country
.,aco the radical reduction in prices of
farm products and sympathizes with
tarm. Everyone is interested in relief
FIR them because disaster to such a
large and vital interest of the country
aoans disaster to all interests. But in
considering methods of relief one should
not advocate measures that will in
.rea~e the disaster. Politicians see an
opportunity to gain political favor by
attempting to grant the distressed farm
rs political favors.
The first political II owe in favor of the
farmers is the bill Senator Hitchcock
.ontemplates introducing early next week
in congress authorizing the loan of the
earnings of the federal bank system for
he year, amounting to between $780,
100000 and $7O,OOO000, to extend the
credits of the farmers and stock rails
rrs
The first objection to such a scheme is
hat it is political attempt to remedy an
economic condition and therefore not an
effective remedy. The reason the farm
ers cannot secure an extension of their
credits today is the lack of safe security
for their loans. The radical reduction
in the price of farm products has re-
duced the assets of the farmers by &c.,
100000, 600 to SIS, 100000 and re-
duces the security they can offer lenders
by that amount. Seventy million dol
lars is only a mark on six or eight bill
ion dollars and would be but a drop in
the bucket. They could secure the So
100000 Immediately if they could offer
safe security for such a loan. If they
cannot someone else must furnish it and
in this case it would be the tax paying
public The public could only increase
it's taxes upon itself to furnish such a
sum.
The farmer is not alone in this di-
lemna. Manufacturers desire extension
of credits so they may hold their goods
until they can get satisfactory prices.
Labor also wants wartime wages con-
tinued through peacetime and through the
period of rapidly falling wholesale prices.
Merchants would like an extension of
credit so they can hold their goods
until they can secure wartime
profits on their sales. They are
just as much entitled to gov
eminent aid in this matter as the farm
ers but it would be ruinous for the pub
lie to undertake to give all a feed at the
public crib at public expense.
There is merit in the suggestions of
Senator Edge on this proposal for gov
eminent aid. He says the consumers
must be considered. They are tired of
high prices. They have borne the heat
and burden of the day and they, perhaps
rightly, feel they are entitled to the BEN
eft of any lower price levels which may
develop in the readjustment of economic
conditions from the abnormal wartime
standards to the normal standards of
peace.
I'VE all know that the only durable
and infallible barometer of business is
the law of supply and demand, and to
set up an artificial, uneConomical and
false structure for the maintenance of
prices because some certain industries
are suffering is only postpOning the evil,
when all business and industry, including
the farmers, must face the music. OF
course, the process of reimbursement after
a war which upset every normal condi-
ton is painful and beset with difficulties,
but we shall be much better off i'll the
long run if we undertake it unfinchingly
without attempts at uneeonomic or pa
tePnalistic solutions or trying to estab-
lish and maintain artificial and, therefore,
false prices"