The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1921-01-06

OillOn OIL lilS country
As | see the situation, the country
cannot look with indifference upon
the distressing situation in which the
farmers find themselves because OF
the tremendous shrinkage in the value
Of agricultural products. We cannot
excuse inaction nor dismiss the mat
ter with a mere observation that de-
fation is necessary, and that farmers
must take their medicine along with
the rest of the country. The farm
industry is basic to the life of the
nation, and possesses superior clam
consideration, not alone because
it's prosperity is our best protection,
but also because the farmer, by the
very nature of his business, is more
exposed to adverse influences and has
less protection against them than any
other class. The bulk Of his crop
natures at the same time and if fore
ed upon the market all at once or in
short period he may not realize eV-
en- the cost of production.
To have a chance to make a fair
profit he must have credit to carry
his crop for a reasonable time. He
must have ample, economical and
prompt railroad transportation to get
his crop to market at the times when
he can sell advantag geously, and he
must have sufficient, convenient and
reasonably cheap storage facilities for
the conservation of his crop while
waiting for a favorable market.
1t is in the highest degree to the
interest Of the people as whole that
the farmers shall have these facilities
and opportunities so that speculation
and greed may not thrive on his mis-
fortune on the one hand, and that
the consumer may not suffer. from the
eXtortion of proflteers on the other.
When colossal losses like those the
farmers are now sustaining overtake
them, every line of industry suffers,
factories close, business shrinks, la
Dor is thrown out of employment, and
confidence is seriously shaken. We
are already experiencing these un-
happy consequences.
Of course prices in the United
States could not be kept permanently
on an inflated and artificial basis.
Defation was necessary and ineVlta-
bic but the processes of defation are
frequently more dangerous than the
processes of imitation. 1t is easier
to climb trees than to come down. For
this very reason the readjustments
through which all industry and busi-
ness are now going must be dealt
with intelligently, and eased in ev-
cry reasonable way. 1t is the imper-
ative duty of those in civil authority
and of those who control credit to
exercise their powers so as to prevent
needless distress and preserve conf
dence
I am frank to say that I think that
the policies thus far pursued with re-
spect to credits have been too dras-
tic, but whether or not I am right, I
am sure that the situation should
now be reviewed in the light of exist
ing conditions. A more liberal poll
cv about credits should be put into
effect Immediately. I think that the
reserve bank rates could be prudently
reduced and that member banks could
be safely encouraged to make loans
on agricultural products and to busi-
ness generally on reasonable time to
those who can give adequate security
and that the. whole situation would
be beneficially affected by this proce-
dure.
Every intelligent person sympa-
thizes with the effort to prevent spec
ulation and the use of credit for pur-
poses not beneficial to the general in
terest, but a wise discrimination
should be exercised, and certainly the
primary producer like the farmer
should not be forced to bear the brunt
of the sacrifices.
In many parts OF the country, es-
pecially in the agricultural districts,
credit is almost entirely wanting and
in many lines of legitimate business
great losses are being sustained be-
cause of the restriction of credits.
The point l wish to impress is that
defation has been carried so far and
with such rapidity that we must now
reconsider the situation, make an
effort to prevent further distress and
suffering. and bring about revival
of industry and confidence.
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