The New York herald., 1920-12-27

czecho- -Slovakia. and the whole indebt-
edness in turn was guaranteed py the
Government of Czecho-Slovakia.
"Under more or less similar arrange
ments the War Finance Corporation
financed the export of $12,OOO.OOO OF
wheat TO Belgium and $5.OOOOOO or con-
densed milk to various countries in Eu-
rope. At the time that it was compelled
to suspend financing exports 1t had ap-
plcations involving the export or VIZ
100000 of copper, $2,200,000 fabricated
steel to Italy, S5,000000 Black Patch'
| tobacco from Tennessee and Kentucky
| 81 900, 900 cotton to CZecho-Slovakia Tor
large Southern exporter, S25,O0o'ooO
cotton to Czecho- -Slovakia for a group OF
Southern bankers. $3,000,0OO for cotton
To Italy by group of bankers, SS'ooV'-
600 by group of bankers for export OF
cotton to Italy, $24,000,000 for the ex-
| port of cotton by syndicate of banks
| headed by one of the largest natlonal
| banks in the United States, $2,4OO,OOO by
| a group of bankers for coal TO ltaly,
! $4000,000 by group OF bankers LOT
cotton TO Italy. $i.000,000 for ships TO
| be bought or constructed in this country
for Italy; in all, S10O,OO0.OOO In appn-
ca tions promising practical results with
adequate security, according TO the
| opinion of the directors OF the war
Finance Corporation.
! I'm addition to these definite propo-
| stions, various other negotiations were
under way for further extensive loans
which TO doubt would have materialized
in large financing OF exports or various
| kinds of American products.
Money for the War Finance Corpora
! ton, in my opinion, could now be raised
| to the extent of $250000.0O0 to $oOO,OO0.-
900 by the issue of one year War Finance
Corporation notes bearing per cent
interest with small discount or sell
ing commission. i
"The War Finance Corporation issued
5000, 900. 900 one year per cent. notes
in April, 1919, to provide funds to take
care of eventual emergency require
ments made necessary by the failure OK
the Congress to pass the railroad appro-
priation These notes were paid or on
or before maturity. In my opinion II
would be possible to raise large amounts
in the investment market at this time
without calling upon the Treasury for
funds and with the result of moving our
crops and relieving the farmers and the
banks"
McAdoo UphOIds Farmers Cause.
Among other things Mr.. McAoo says
eve cannot excuse inaction nor dis
miss the matter with mere observation
that deflation is necessary and thai
farmers must take their medicine along
with the rest of the country. The farm
Industry is basic to the life of the ma
ton and possesses superior claim TO
consideration, not alone because its pros
perity is our best protection. but also
because the farmer by the very nature
Of his business Is more exposed to ad-
verse influences and has less protection
against them than any other class. The
bulk of his crop natures at the same
time and If forced upon the market all
at once or in a short period he may not
realize even the cost of production.
ITO have a chance to make fair
profit he must have credit 10 carry his |
crop for q reasonable time. He must
nave ample. economical and prompt rail- |
road transportation to get his crop to
| market at the times when he can sell |
| advantageously. and he must have suffi- |
| cient convenient and reasonably cheap |
| storage facilities for the conservation |
| of his crop while waiting for a favorable |
market.
1T is in the highest degree to the in
terest of the people as a whole that the /
| farmers shall have these facilities and ,
opportunities so that speculation and I
greed may not thrive on his misfortune
on the one hand and that the consumer
| may not suffer from the extortion Of
profiteers on the other.
| when losses like those the farmers
are now sustaining overtale them every |
line of industry suffers.
Il think that the policies thus far !
pursued with respect to credits have /
been too drastic but whether or not
am right | am sure that the situation !
should now be reviewed in the light of
existing conditions. A more liberal pol 4
icy about credits should be put into ef- 1
feet Immediately. l think that the Re-
serve Bank rates could be prudently re-
duced and that member banks could be
safely encouraged to make loans on ag-
ricultural products and to business gen.
orally on reasonable time to those who
can give adequate security and that the |
whole situation would be bene1cially af
fected by this procedure.
Must Use Wise Determination.
Every intelligent person sympathizes
with the effort TO prevent speculation and |
the use of credit for purposes not bene- |
fetal to the general interest. but a wise |
discrimination should be exercised. and |
certainly the primary producer like the
farmer should not be forced to bear the
brunt of the sacrifices.
THE recent action of the League of
Nations at Geneva for the establishment
Of an International commission to con- |
soliiate the credits of some of the CEN
trail European Powers and utilize them
| In the purchase of American commodi. |
ties Is an important step.
Every influence OF this Government
should be promptly exerted TO secure a
prompt determination of the amount OF
the German indemnity. So long as this /
question remains unsettled it is un- |
doubtedly true that there can be no
economic rehabilitation of Germany and
Of the Central Powers. and so long as
this continues their credit and buying
power are reduced to a minimum.
"If the German indemnity were fixed
to-day 1t would enormously help the
economic situation throughout the world.
and an immediate market would be
opened for American food, cotton and
manufactured products which would not
only relieve great suffering in Europe
! but rebound TO our own prosperity"