The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1921-09-05
SEES NEED FOR NEW
FARM CREDIT PLAN
Anderson Of 'Congerssional Commits.
sion, Favors Permanent
Agency.

: nent agencies should be establishe
{ to provide, credit, running from 81
months to three years, for farmers
poduction and marketing purposes t
fill the gap between short and lon
credits furnished by existing banking
systems, Chairman Anderson of tn
C Congressional commission investiga
ting agricultural conditions declare,
today in a statement. There is ''im
mediate, imperative and conclusive
necessity of setting up permanent
machinery" he said.
The proposed credit, the statement
said, must be of such character as tt
conform to the farmers turnover
sad 3of sufficient flexibility to meet
1.-The varied requirement Of different
localities and different commodities
Mt. Anderson contended the credit
should be extended 'tfor a time suf.
ficient TO enable payment to be made
tout Of the earnings of the farm,
without frequent renewals which add
to the expense Of the borrower in
fees and commissions.
Declaring that machinery of sufi-
cient scope can be established only
through federal legislation, the
chairman held that once established,
it SHOULD ! be self-sustaining, and
should require no government sup
port except possible for the initial
capital required to put it in opera
tion. A system established by such
machinery, he continued, must be
comprehensively enough to meet the
requirements not only of the large
farmer borrower, but the small far
mer borrower with limited assets.
There are two essentials Of such
a credit machine,s the statement
said. "The first essential is an agency
to deal directly with the farmers.
These agencies should be sufficient.
~ numerous to meet the require
ments of every locality, of every
commodity of every farmer. Two
agencies now exist which might be
used as the point of contact Of the
system with the farmer borrower.
These agencies are the commercial
banks Estate and National,) and the
farm loan associations as now estab-
lished under the farm loan act. Al
new agency might be created in the
form of cooperative credit associa-
tion, built upon lines similar to the /
farm loan associations.
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
10 the investing public. In other
words, it is necessary to have an
agency through which the investing
public can be. reached.
1.-The character Of. both agencies
s langley dependent upon whether it
s proposed to have the debentures
'r securities absorbed by the de-
'osit pool, represented by the de-
'osits OF the national and State
'anks, and the liquid assets of the
country, or by the Investment pool,
'epresenting the credit. ordinarily i
invested in long time securities. .
There is, in my judgment, no
eason why both pools cannot be
fa"n upon TOT tne proper credit re- !,
luirements of the farmer. II!
"1n setting up the agency to deal
lirectly with the farmer borrower,
IS desirable to use the primary
redlt agencies already existing and
here would seem TO he no reason
Why it should not be possible to use
10Th the commercial banks Estate
md nationally and the farm loan as
ociations. II
In like manner, in order to set
lp the agency to distribute farm
redit to the investing public, wheth- ! );
r in the form of the original obi
'ation or in the form of debentures
r other securities, it may be pos
fble 10 use both the farm loan banks
nd the federal reserve banks"
I'm nnpn ny,lofio~ IL "a s.. =,