Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-11-30
ALARM EXPRESSED
over AGRICULTURE
"Something Must Be Done for
Farmers" Says Sena-~
tor Capper.
BANK CREDIT DENIED
Grain and Live Stock Sold at Less
Than Cost in Order to
Secure Cash.
~ DAVID LAWRENCE,

Critical is a very much abused adj
jective. but it accurately describes
the agricultural situation in the
United States today as reflected in the
conversations Of senators and repre-
sentatives returning to Washington
from farm states.
II anybody fmagines that the COM
Ing session of Congress is going to be
a routine affair with only supply bills
on the calendar he VIII be much mis-
taken. For the unrest in the agrt-
cultural states, the demand OF bust
ness men that payment Of income
taxes be postponed, the outcry that
credits be established and some form
Of international cooperation brought
about so American products can find
an outlet overseas-au this Is symp-
tomato Of pressure from all sections
of the country-from the cotton states
government at Washington that will
stabilize market conditions.
The agricultural element in Con-
gres is always powerful. Backed by
descent on Washington has begun.
There is to be a conference on Friday
of republican and democratic senators
from western states in an effort to
get agreement on u program to be
put through the republican Congress
sCondition Ix a Fright"
The agricultural situation is a
fright" said Senator Capper, repub-
lican. of Kansas. today. Something
must be done-and done quickiy. too"
The slump in prices has forced
farmers to get rid of livestock and
grain at prices way below the cost of
cash. They can't get credit at the
banks The latter. by reason of in
struction from the federal reserve
board, will not rediscount agricultural
paper.
Two main proposals are under con-
yival of the war finance corporation,
and, second. the adoption Of a new
policy by the federal reserve board.
1t is now asserted that the demo-
cratic administration erred when it
permitted the war finance board to go
out of business. The power to revive
It is still vested in the President. Eu-
gene Meyer. chairman of the board,
is said to have differed with Secre
tary Houston. who recommended the
extinction of the board. The agri-
cultural senator's criticise Secretary
Houston severely and SO do some of
the leaders Of the farm organisations.
They sal he is out Of touch with the
sentiment of the country when he
says there is plenty of credit for the
farmers
Shealders to Wheel.
: On the other hand. Mr.. Houston has
insisted that the process of readjust-
ment and reconstruction after the
war is an inevitably painful one and
that all classes must put their
shoulders to the wheel and bear the
The federal reserve board
frightened up on credit early in the
spring In, the hope of Debating the
ekedit situation gradually.
Many industries have been adverse
1y affected The farmers are just feel
ing the effects of the same restriction
now bearing fruit
its defenders insist that the cost Of
living la thus being reduced, that the
drop in prices is a direct result Of the
action Of the federal reserve board in
restricting credit. But the agricultur-
far-that 1t will mean ruin to the farm
ers and a decrease in the amount of |
food.
Favor Some Form Of Relief.
The bankers in the agricultural COM
Munities are said to be practically I'M
animous in favor Of some form Of re-
lief. either through the federal reserve
board or the war finance corporation.
The latter organization furnished credit |
0uflnS the war 70 enterprises WHICH
ERE helping in the war-making ma |
: ainery.
3enator Capper believes that Congress
say be persuaded either to pass an
smendment to the federal reserve act
ar a resolution declaring the opinion i
Of Congress as to the extension Of cred
its to the farmers OF the country. The
government has, on many occasions. |
Ssed its machinery to relieve farmers
p emergencies and the senators and
REPRESENTATIVES from agricultural states
Ill, naturally. put up a stiff fight for
N,me such action Their political flu
jkes may be dependent upon the way !.
They handle themselves in this crisis.
Cnnyrighf 1QC0l