The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-06-08
THE CRy FOR CREDIT.

THE CRY FOR CREDIT.
J. R. Howard, president of the
American Farm Bureau Federation
insists that it is the duty of the banks
to make extensions of credits to farm
ers. But why shouldS'the farmers pc
singled out for the special consid era
ton of those who hold the purse
strings?
Probably no industry in the country
needs money worse than that of the
railroads, yet nobody outside OF the
federal government Seems disposed to
lend money to the roads on terms
which they can afford to meet and
the government makes advances only
in extreme cases.
The whole country has been suffer-
ing from too much credit. An ex-
pansion of credit at this time would
start another advance IN prices. High
prices are the thing from which the
country has been seeking relief.
OF course everybody has been desir-
Gus that the other fellows prices come
down, while his own should remain at
the war time level. But this arrange
ment, however desirable, is impossible.
Prices, like water, seek a common
level and sooner or later attain it. ~
Labor is not asking for loans but
it is insisting upon extreme wages,
such as were paid during the war and
during the initiation period following
it, without regard to lower living
81 he ar cn11di.
tions brought about by laborious re-
adjustment. This is unfair to every
body. Yet this attitude is still nain-
tanned by large bodies of workers, or
at least by their leaders, as in the rail-
road industry building trades, print
ing and publishing industry, pubic
utility companies and. to some extent
the clothing workers.
While reductions are not proceed
ing with much energy, wages on the
whole, however, are slowly seeking a
lower level. Labor enters so largely
into the cost of producing nearly ev-
erything that it is upon this readjust-
ment that final sterilization of prices
all. along the line most depends.
the fact that they are lighting, not
their employers or the public, but a
great economic force which is. ire
sistible, and accept the result, which
means lower wages and more work
for the wage received, the sooner we
will have revival of business. Unem-
ployment is a part of the force oper-
OF RI rd q
efficiency.
There is no doubt that the credit
situation is improving. All danger of
panic or disturbance even suggest
ing it has passed. Liquidation is con-
tinuing, prices are gradually receding
and both of these factors have result
ed in a lessening demand for money.
The Boston Federal Reserve bank has
reduced it's discount rate on CONNER
cial paper from to per cent; At
lanta has done the same; the New
York, Chicago, Minneapolis and Dali
| las banks have reduced their rates
from z to 6h per cent. The bank
rates abroad also have fallen.
The Federal Reserve bank of New
| L VI n All 4tS INJURY ACf4OW 4AldhSS tue
following comment on the domestic
credit situation:. LAS liquidation has
gone forward there has been de-
crease in the demand for funds on the
part of prime borrowers which has
been reflected in the growing scarcity
of such paper in the open markets
The volume of commercial paper out
standing is smaller than it has beer
for many months"
| 1t is to the interest of the banks to
keep business as good as possible
while having consideration for fipan-
cial safety. But always it is difficult to
borrow money on a losing business
and both the farmers and the rail-
roads have maintained that they were
losing money.