The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1921-02-10
FLITTiE ADDRESSES GROWERS

Farmers must depend upon state
legislation rather thar looking to the
federal government to respond to their
needs" was the statement of r. |
Fli.tie, president of the Bank of Brook
ings, an an address delivered before
the annual meeting of the South Da.
kota Corn and Grain Growers associa-
ton held at Yankton last week. Mr..
tllttie's talk was listened to with great
interest and his remarks have been
given wide publicity.
Efforts to help the farmer through
legislation are being promulgated on
every side" said Mr.. Flittie. Aside
from levying a proper protective tar
III, and proper representation IN the
federal reserve board, | do not believe
it will pay the farmers to look for any
special legislation from the federal
government. If any special legislation
to help the farmer is needed it should
be passed by the individual states, be-
'dtSt liz SIdlt "oulu De lIlOIt TSSDOU
sive to the needs of the farmer within
its borders, than the federal govern
ment."
The speaker expressed his opinion
that if those in authority in Washing
ton had the vision and knowledge Of
the needs of the agricultural and live
stock industries that George Reynolds
OF Chicago had, and if his advice had
been sought, some of the difficulties of
the farmers could have been avoided,
and continued, in part, as follows:
The federal reserve bank is the
peoples bank and should be respon-
sive to the needs of the agricultural
brought about in one way; that the
banks of South Dakota take out mem
bership in the federal reserve bank of
Minneapolis. Then, and only then do
we have a right to expect aid through
the federal reserve system.
IF the South Dakota banks have
sufficient capital, membership in the
federal reserve system, other proper
connections, and their resources fairly
liquid, the agricultural and livestock
interests of South Dakota will be fairy
well cared for.
There is, however, one line of bust
ness in South Dakota that the banks
are not large enough TO accommodate
the farmers cooperative elevators.
in order that the farmers eleva
tors make the most of their ~associa-
ton, they should be independent Of
the commission houses, so that they
could sell their grain direct, which
necessitates independent financing.
Why would it not be ~expedient for
all the cooperative elevators to asso
ciate themselves in forming a dis
count corporation to finance the sea
sonal needs-in the marketing Of the
grain.
THE capital Of the discount cor
poration should be owned by the
farmers cooperative elevator com
panIes and should be sufficiently large
so that when the notes of the various
cooperative elevators were offered TO
the investors and bankers, the paper
would be regarded as high grade com
mercial paper, with the endorsement
Of the discount corporation. The note,
would be based on grain which IS
liquid.
The directors Of each local asso-
citation would guarantee the grain pa
per originating from the association
(they now guarantee the advances TO
the commission hOuses), commercial
notes based on grain, given by a
/ strong local association guaranteed by
the directors and endorsed by a strong
! discount corporation would make il
very desirable paper for the South Da-
kota BANKS TO carry; and would be
available with he federal reserve
bank, and notes that would be sought
in the open market.
THAT the discount corporation would
have a proper check on each ind
vidual association, it would be advis,
able that the discount corporation
would have a right to audit each as
ISOLATION with the directors at least
twice each year. which would assure
TO the association that it was property
conducted.
Through the state bank joining the
federal reserve system and through
well managed and properly financed