Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-09-02
NEED PERMANENT
FARM GRE DIT To
MEET SIT TUAT|ON
Chairman of Congressional
Committee Urges "Imper-
ative and Conclusive Me-
CeSSity" of Such Credit.

Washington, Sept. 1.-Perma-
nent agencies should be esta blished
to provide credit, running from six
months to three years, for farmers
production and marketing purpos-
es to fill the gap between short and
long time credit furnished by eX-
isting banking systems, Chairman
Anderson of the congressional
commission investigating agricul-
tural conditions. declared today in
statement. There is Immediate,
imperative and conclusive necessi-
ty of setting up permanent ma
chinery,' he said.
The proposed credit, the state
ment continued, must be of such
character as to conform to the
farmers turnover, and of sufficient
fleXibility to meet the requirement
Of different localities and commod-
tiles. Mr.. Anderson contended
that the credit should be extended
for a time sufficient to enable
payment to be made out of the
earnings of the farm, without fire.
quent renewals, which add to the
expense of the borrower in fees
and commissions"
Declaring machinery OF suffi-
cient scope can be established only
through federal legislation, the
chairman held that, once estab-
lished, it would be sustaining,
and should require no government
support except possibly for the ini-
tial capital required. A system es-
tahlished by such machinery, he
continued. must be comprehensive
enough to meet the requirements
not only of the large farmer bor-
rover, but the small farmer bor-
rover.
There are two essentials of such
a credit machine" the statement
said. The first essential is an
agency to deal directly with the
farmers. These agencies should be
sufficiently numerous to meet the
requirements of every locality, of
every community and Of every
farmer. Two agencies exist which
might be used as the point Of con-
tact of the system with the farm
er borrower. These agencies are
the The commercial banks Estate
anG nationaD and the farm loan
associations. A new agency might
be created in the form of a Coop
erative credit association, built on
lines similar to the farm loan asso-
cations.
THE second essential is an
agency which can convert a large
number of small obligations of the
farmers into short time debentures.
or other credit obligations, which
can be sold to the investing public.
In other words, it is necessary to
have an agency through which the
investing public can be reached.
THE character of both agencies
Is largely dependent upon whether
it is proposed to have the deben-
lures or securities absorbed by the
deposit pool represented by the
deposits of the national and state
banks and the liquid assets of the
country, or by TIE investment pool,
representing credit ordinarily in
vested in long time securities.
There is, in my judgment, no
reason why both pools cannot be
drawn on for the proper credit re-
quirements Of the farmer.
I'm setting up the agency to deal
directly with the farmer borrow
err, it is desirable to use the pri-
mary credit agencies already exist
ing, and there would seem to be
no reason why it should not be
possible to use both the CONNER
cial banks and the farm loan asso.
Citations.
I'm like manner to set up the
agency to distribute farm credits
to the Investing public. whether in
the form of the original obligations
or in the form Of debentures or
other securities, 1t may be possible
to use both the farm loan banks
and the federal reserve banks"
On completion of its inquiry, the
commission, Mr.. Anderson predict
ed, would be able to recommend
to congress "a definite concrete
plan." which, he added, would
" implement the credit facilities
now offered through the farm loan
and the federal reserve slstem"
and would give the American
farmer tho most comprehensive
and flexible credit system in the
world -