The spectator., 1921-10-04
ROW THE FARMER
 WILL BE AIDED
DIRECTOR OF THE WAR FINANCE CORPORATION ON THE AGRi-
 CULTURAL RELIEF ACT.
IT'S WORKABLE, SAYS MEYER
Meets Present Conditions by Assisting in the Carrying of Farm Products So They Can Be Marketed More Slowly.
By EDWARD B. CLARK.

By EDWARD 8. CLARK. Washingt ngton.-SGemngy officials of government directly charged with the work of administering the agricultural relief act. which was passed by con- gross and approved by the President 1 recently. believe that the legislation | is to bring some of the results which are desired. Experience alone prob- ably will determine the outcome, but the War Finance corporation is pan- ming the work and is expressing con- fidence in real accomplishment. Eugene Meyer, Jr., is the managing director of the War Finance corpo | ration. His views on the agricultural relief act ought to be of interest. for his organization is charged with the work of its administration. His views, to be approved, or perhaps conbatted. according to the viewpoint, are as fol- lows:
 The agricultural relief act is q | measure of great significance to our | agricultural interests. It is a very | constructive piece of legislation. and, in my opinion is thoroughly workable from the administrative point of view. It recognizes the new conditions eX isting iu our international and domes- tic trade and aims to meet these con ditions by giving the War Finance corporation power to assist in tinanc- ing the carrying of agricultural com modities until they can he marketed in an orderly way.
 "The inability and unwilinEness of foreign merchants and manufacturers to purchase the greater part of their requirements for the years during the period immediately following the har- vesting of our crops, as they are ac- customed 10 dc in normal times. coupled with the failure of our own merchants and manufacturers to car ry normal stocks, has brought about situation which makes it necessary for us to market our staple agricul- tural products over longer period than usual.
 Cotton Situation an Example.
 This situation is clearly indicated in the following extract from report from an investigator of the Depart ment of Agriculture. who is now in Europe stirdying the markets there for American agricultural products:
 The cotton merchants over here in the countries visited do not think it sound business for American shippers or banks to advance too much credit to the cotton mills. They say that the mills can arrange the necessary credits with local banks to buy cotton if only they can show an outlet for the goods; that extending liberal cred it from America will tend to increase the risks assumed by the mill and may lead to speculative ventures on the part of the mills.
 "The merchants point out that mills should buy cotton only as they nre that the min should cover Its require ments with cotton close at hand. They go so far as to say that the merchant should sell cotton on call for the mill to fix the price when the goods are sold. This suggestion seems unsound to me. as 1t involves too great risk for the seller. making him take chances which rightfully fall on the manufacturer. But at any rate the suggestion that reasonable stocks should be placed in the leading Euro pean markets and hedged In dollars, seems sound.
 Exchange Rate Interferes.
 srySt. sale is consummated and at a rate of exchange which Is taken into consid- eration when the price Is determined These merchants point out that they cannot carry large stocks as in former years as a change In the rate of ex- change might cause serious losses, and that therefore they must of neces- sity buy cotton only as 1t Is needed. If they follow out this plan 1t will mean safe business to European mills. but Q slow and long drawn out cotton season back in America, and cotton growers might as we'll make their plans to market their crop gradually as the demand warrants.
 ''The pressing need at the present time, therefore. Is for additional fa. cilities to finance our staple agricul- tural products so that they can be marketed more gradually than for merly The agricultural relief act aims to provide these facilities along sound lines, and in way that will be helpful not only to the producers themselves. hut also to the whole business of the country.
 Tt should be clearly understood that the act is an emergency measure | designed to meet the abnormal condi- tions now confronting us. Experience salth its