The New York herald., 1920-12-25

PLAN OF FARMERS
HERE SAID TO AID
TRICK BY BERLIN
With Foodstuffs a First
Lien Germany Would Seek
Cut in Indemnity.
BIG CREDIT NOT URGED
Agriculturists Tell Sena-
tors They Are Not Back
inc Billion Dollar Idea.
COOPERATION ADVOCATED
Tillers Of Soil Warn Legisla-
tors of Dangers Unless They
Receive Relief.

speciol Despatch TO THE New York HERALD.
New York Herald Bureau,
Washington, ID. g., Dec. "a.
A fiat denial that farm organiza-
tons OF the country are seeking to
have the United States lend one bill
Ion dollars to Germany to create a
profitable market for farm products
was made to-day by ]. r. Howard,
president of the American Farm Bu-
rea4 Federation, in a statement to the
joint committees of the Senate on
Banking and Currency and Agricul-
ture.
Mr.. Howard explained that the far
rner organizations did wish to have
foreign markets OF all countries
and that special reference had been
made to Germany because they hoped
to have IL arranged so that credits
for foodstuffs should be lien prior
to the indemnities that must be paid
to the Allies. William w. Brauer.
representative OF the German Govern
ment with a contract TO obtain Amer
lean credits, was present, but made
no statement
Senator Mclean Comm, Republican.
datly stated that he thought Germany
was seeking to have debts for food made
a prior lien to debts 70 the Allies so as
to force the Preparation Commission 20
lower the amount of the indemnity.
AR. Howard agreed with arguments
advanced by several Senators. prnci-
pally Senator Mclean, that Govern
ment loan was Impractical for the farm
ers' purposes and impossible for the
United States Treasury. He approved
Mr.. McLean's statement that such a
financial policy by this Government
would lead US toward the unspeakable
pestilence of flat money" and repeat his
tory made after the civil war
New Plans to Aid Farmers.
The hearing was informal and was
held to discuss further possible measures
of relief to the agricultural industry and
developed several new suggestions Cor
remedies.
Senator Frelinghuysen IN. ~. Repub-
lean. strongly advocated extension OF
l,e warehouse system so that warehouse
eceipts for grain in storage could be
sed as negotiable securities In tidinS
Iyer the period when farm products are
~.ng dumped on the market at the har-
est period.
lie suggested also the creation through
{ War Trade Board of a commodity
xchange," which should act as a clear
= house for trading domestic for for
eu products.
Wide difference of opinion between
enators was disclosed, Senator Hitch
.uck (Neb). Democrat insisting that
he greatest need was credit. while SEN
.or Randell (La.). Democrat. said that
:larkets were the answer TO the prob
,cm.
Senate amendments TO the bill to en-
ourage cooperative marketing. now IN
difference to smooth differences between
The two branches of Congress, were
Condemned by Mr.. Howard and by Cray
silver, another official OF the Farm
$ureau. as utterly destructive OF the
.cnefts sought by the legislation The
lcnate amendments took the administra-
on Of the measure from the Department
Agriculture and transferred IL to the
federal Trade Commission and specih-
ally emphasized that its provisions were
not to be construed as exempting
monopolies from the Clayton antitrust
oct.
The farmers spokesman asserted that
the difference between these two govern
mental agencies both of which they
conceded were exercising entirely proper
and desirable functions, were compar-
able to the difference between a de-
tective force and a welfare organiSa-
ton. One was looking for crime while
the other was seeking TO prevent Il.
and the farmers fearing prosecution,
preferred to be. assisted in avoiding vio-
lstion OF law rather than to be indicted
after they had unknowingly committed
a crime.
This view OF the situation seemed TO
impress favorably the committee while
several Senator'S expressed desire to
eliminate the Senate amendments.
The need for farm credit throughout
the consumptlve year" was strongly
emphasized by Mr.. Howard to enable
farm products TO be marketed from
month TO month rather than to be
thrown on the market at harvest time
as an instrument in the hands OF specu-
lators.
Farmers Ask Justice I'm Tariff.
II developed thai Gov. Harding of the
Federal Reserve Board has informed the
Banking and Currency Committee OF his
opposition to the Hitchcock bill to use
s70,000.0o0 Government profits from
operating Federal Reserve banks as n
fund to redscount agricultural paper
Az the same time Gov. Harding indorsed
the PROPOSAL TO use this fund to finance
farm land banks TO which directors of
the Farm Loan Board are opposed.
The prospective one year emergency
tariff bill now threatened with a Demo-
cratic hlibuster In the Senate, was
brought into the discussion. Mr.. How
ard was not enthusiastic over IL. but
said II might help.
Our one claim" he said, els that we
should receive the same degree OF tariff
protection that is given TO other prod
ucts"
Senator Mclean expressed the belief
that an emergency tariff wall shutting
out foreign imports would leave foreign
nations with no market and therefore
with no cash TO pay for American
goods. He predicted also that Il would
have dsas'rous effect on the foreign
exchange rates 10 would mean. he said
that wheat sold at sl.ss IN America
would cost German buyer. paying IN
$40.
"of course" he added. "they can start
their printing presses, which might help
them, but would not help us. In the
enc II would mean disaster for ALL"