The Mena weekly star., 1921-08-18
MONEY AID FOR
 FARMERS MAPPED
Congress to Consider Insurance of Ne, gotiable Farm Paper and Its Dis counting-Will Cheaper Insur-
 ance-Public Hearings.
By A. o. Hayward, International News Service Staff Correspondent.

Washington, Aug. 15.-Insurance of agricultural negotiable paper to standardize and to provide discount markets for it is being considered by Congress in it's groping for practical plan to assist the farmers.
 Some large insurance company, or companies, may be induced to change charter provisions in order to under take this field of insurance. British insurance companies have been en- gagged with profit in this fine for many years.
 The House Banking and Currency Committee will consider the legisla- ton necessary to make effective the proposed plan of financial aid to ag- riculturists. Chairman McFadden, of that committee, has submitted for Consideration of the committee bill to legalize the scheme. It is known as a rural credit and multiple insur- ance bill, and it's declared purposes are ito standardize paper for agricul- tural production and to establish dis count markets for such paper"
 Public Hearings Scheduled.
 During the coming fall a special committee, consisting of Representa- lives Clarence MacGregor of New York, chairman; James w. Dunbar, Indiana and Eugene Black, Texas, will hold public hearings on the legis- Iation to get the views of those inter ested. The National Society of Pure bred Livestock Associations has asked to be heard in support of the bill. Insurance interests, bankers, { Farmers organizations and others will be heard
 The McFadden bill creates two cor ' porations--a rural credit society and multiple insurance league--to carry { Into practical operation the plan pro- posed. 1t is expected that insurance companies can be induced to accept a multiple insurance charter in lieu of state charters, which they now have &to carry on their insurance business. The federal charter proposed is broad and liberal and permits insurance zcompanies in the league to do every &class of insurance. Many British in surance companies have held such charters for over century.
 The insurance league is to serve two purposes. First, it will act as a use- z ful agency in standardizing the agri- E gultural paper created by the rural credit society. This is similar to the work of the British "acceptance Ehouses," which have been potent fac tors in standardizing the British bills of exchange.
 Will Cheaper Insurance. s Second, 1t t will will furnish eheap and sound multiple insurance to the mem bers of the credit society to enable the tenant farmer to furnish as good se- curity as a basis for credit as the richest farmer. The actual tiller of < the soil would command the lowest discount rate for his productive credit ! paper.
 The British acceptance house grew out of the importing merchant firms, who originally accepted bills in the course of their importing business, and merchants of second-rate credit found that by paying a small commis- sion to the acceptance houses for en- dorsement their paper would command the lowest discount rate on the open market.
 A big life insurance company could 3 perform. it is argued, a similar serv- { ice to the farm credit system pro- posed in the McFadden bill.