The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1920-10-08
FARM CREDITS.

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1t 4is. a policy of doubtful wisdom
to, encourage larger and longer loans
to farmers In order that they may car
ny their products over for six months
or year beyond the normal market.
ing period. OF course the farmers
should and must enjoy o proper and
reasonable measure Of credit, but too
great an extension would not In the
end profit any one. It Is proposed to
make exceptionally liberal advances
In order that crops may be held for
an indefinite period In the hope OF
better, prices.
In the meantime another crop would
be produced The farmer could not
sit idly by and walt year or two
for prices to advance In order to mar
ket what he had already produced.
He must produce all the time and any
surplus that might exist would SIM
ply increase as time went on end
there ia no promise of better mar.
ket In the immediate future. j.
Values are falling. That fact Is re-
cognized by the wise business man,
He has been making hts plans for
some time With this contingency in
mind. He has been roundly and in.
Justly denounced as "profiteer'" be.
cause he made q larger margin Of pro-
fitfthan In normal times simply that
he might be able to stand the loss
when values did decline. Had he not
taken this altogether proper precau-
ton there would have been failures
that would have caused immense
losses. Farm products have been
falling for more than year. They
will no doubt fall below the present
prices. Many Of them are below the
cost of production and the farmers
are. losing money. Generally speak.
ing they have not made any money
for more than a year. Hut The Her
aid does not believe that 1t will profit
them to borrow more money at the
banks In order to carry their staple
products for. SIX months or year
longer in the. hope OF better prices.
III what they have to market IS
ready it is Ia the Judgment of this
paper. the better policy to sell 1t at
'xhet market prizes and as far as pos
sibie iiduidate THE debts already
made. Nothing will be permanently
gained by the sought for change in the
policy of the federal reserve system
to extend the period Of liquidation in
the hope of advances. @...
Frankly The Herald does not ex-
pect the prices Of farm products or
any other necessities or even luxur-
lies to advance again soon, There is
a tendency everywhere to !, lower
prices. As soon as the things that
the farmer must bly, are adjusted to
the prices at which he must sell his
products. he will be Just as we'll off
as he has been with high priced pro
ducts and even higher articles that
he has been required to purchase.
A heretofore stated 1t is not ey,
pected that times will be as flush"
or that the same measure of pros
perity will be enjoyed by the people
during the period of recession In
prices as, has been known while
values were advancing. The reasons
are obvious. At the same time there
Is no occasion for alarm or frantic
appeals to the government. TIE
farmer who is not 100 much In debt,
who as. far as possible raises what be
consumes at home, and enjoys good
health. It Is utter all in a much
stronger position to weather finan-
cial furry than any other class OF
business men. 49,.
What is' here said with reference
to farm credits has no application to
credits for additional machinery.
aud stock, for farm equipment and
for the purchase OF additional lands.
That should be extended on the most
liberal basis possible. But this paper
does doubt the wisdom OF extended
credits and more generous terms
simply that crops already grown
may be held in the vain hope of
higher prices,