The Hartford republican. (Hartford, Ky.) 18??-1926, 1921-08-26
FARM MONEY ADVANCE
BY KELLOGG'S PLAN
Credit Bill Assists In Market Adyan-
oc without Making Govern
ncnt An Agent

Washington, Aug. 22.-One of the
great achievements of the present Re-
publican Congress in aid of the farm
or is expected to be the amendment to
the farm credit bill proposed by Sena-
tor Kellogg, of Minnesota. enabling
the War Finance Corporation to adj
vance money to banks handling agri-
cultural products instead of permit
ting the government, through spe-
cially created corporation, to act as
agent for the sale of such products
In explanation OF this change, to
be enacted into law, Senator Kellogg
said:
MY reasons for believing that It
is wise to take an existing agency
the War Finance Corporation-are
these: In the first place. the War
Finance Corporation has had four
years of experience in, to a certain
extent, the same kind OF business in
which we now propose TO have IL en-
gage. II has a capital of $500, OO0.-
O00 paid in. At one time it issued
S200,000,OO0 Of bonds, found a rea-
dy sale for them, and those bonds
were paid inside of year 1t now
has available in the Treasury, ready
TO take hold of this export PROPOSE
ton for the purpose OF extending
credit to domestic banks and con-
Germs, exceeding Si00. 900. 900. IL
has an organization consisting OF men
Of great experience "A board Of direc-
tors known to Senators. and a man
ager. Mr.. Meyer. who think has not
only the confidence of the public but
the confidence of the Senate and the
confidnce of the farm organizations
of the country. He has already done
a great deal IN the limited way in
which he has carried on the business.
"As far as possible we ought now
to avoid the creation of new agen-
cies, new corporations, new bureaus.
and new associations. We organized
many during the war.
In the haste of preparation for
war, in the feverish effort to get rea-
dy for the great conflict, there were
many organized that we're really not
necessity. II we have one now that
is functioning and has the capital
and which could perform the SER
vices. believe it to be wiser to use
that agency
las to the board and its officers, !
] think no one would suggest that /
it has not been managed wisely. so
let us use it to the extent we can. |
lbelieve we can use the War Finance |
Corporation to better advantage than |
to create new corporation. Many |
Senators know what II has done. ! |
am not going into the details, but we
realize that some of the great staples
which me must export are cotton,
grain and flour. live stock and the
products of live stock. There is not
cotton for manufacture today where
a nation on the face of the earth us
ing cotton for manufacture today
where the War Finance Corporation
has not stock ready to deliver and
sell for cash or credits which are
handled thru local domestic exporters
or firms and corporations.
"In the case of Poland they have
sold all the cotton Poland wants d.
rect to her manufacturers, taking
their obligations which are guaran-
teed by their banks. and have handl-
ed them to the entire satisfaction OF
everyone without the loss of dollar.
The manufacturers of Poland today do
not want the Government to buy their
products. ! speak with assurance
from having talked with men who are
familiar with the subject. ] am
sure Senators who are familiar with
the business in the cotton States will
bear me out, that that is one branch
of the business which has been con-
Quoted with a large degree of bene-
fit. / can explain why the powers OF
the War Finance Corporation are not
DrOau enough W dlu INC ioSai O"hhS
and institutions now carrying farm
products until they can be Sold in1
foreign countries, and that is one
of the principal provisions of the
proposed substitute.
"Now, it is true that the necessity
for domestic credit is much greater
than It was before the war. Former
ly the principal nations Of Europe us
ing cotton and grain and flour made
their purchases, and especially OF cot
ton a years supply in advance, be-
cause the stable market for exchange
had varied but slightly from month
to month and the ability to obtain
credit in their own country enabled Il
them to buy a years supply of cot S
ton, a years supply of wool from