The daily banner. (Cambridge, Md.) 1897-2008, 1921-02-03

WasliugjOn Jan. 29.-Thc most
vigorous and comprehensive defense
made Of The policy Of those who Op-
posed the bill to revive the War FL
nance Corporation was given out to-
day by Senator Carter Glass, OF
Virginia iii an analysis Of the credit
situation
Senator Glass expressed his views
as 10 the revival of the u ar Finance
Corporation anG the charge that the
Federal Reserve banks had forced
drastic detlation of credit TO the in
jury OF the farming interests in a
letter 10 B. T. Moomaw, a prominent
Virginia Farm Bureau Federation.
Virginia Farm Bureau Federation.
Mr.. MoomaW had written Senator
/ Glass, showing disappointment at his
vote against Teviving the Finance
| corporation and his previous defense
Of the Federal Reserve system.
Denies Benefit To Farmer
Denying that any farmer or hor-
J tiCulturist in the entire United states
! viii he able TO get one dollar from
the War Finance Corporation, un-
less directly engaged in the export
, business. Senator Glass sends Mr..
Moomaw copy of the statute and
| asks him to indicate definitely how
be or any other farmer will derive
/ benefit. Proceeding, Senator Glass
states that there is not a penny in
the treasury of the corporation ana
! that 10 aid exporters, il must borrow,
in the open market for use of SIN
gle class. money that now Is avail
able to all classes.
AS to aid to exporters, and posi-
Bile indirect aid to farmers, Senator
Glass submits figures to show that
exports in 1920 were greater than
| ever before and maintains that what
is needed IS not credit 10 finance
more exports, but an additional mar
t.et for them. He cites concrete IN
stances. To show that there has
/ been no lack Of credit. he gives the
figures of the Federal Reserve Banks
as to loans, and says that more credlt
! was extended in the low-price PERIOD
of 1920 than in the high price period
Of 1919; also he shows that since the
revival of the War Finance COrpor-
alton only one application for loan
has been made and that was by
+ lumber exporter. who was not Will
ing to underwrite his own transac-
ton nor to furnish the ample secur-
ity required by the law.
ask Reply From Farmers
Senator Glass letter in part is as
follows:
If YOU or any one of the many
farmers and hOrticulturists IN Nlr-
cinfa who are dissatisfied with my
attitude with respect TO the bill re-
yiying the War Finance Corporation
and implying a sharp rebuke of the
! Federal Reserve Board will be kno
! enough 10 indicate to me just now
and in what respect any farmer or
! horticulturist in the United States
! unless directly engaged in the ex
| oOrt business, will get one dollar
/ the War Finance Corporation, .
shall be greatly obliged. In this
connection, l am sending you copy
! of the provision OF the statute defn-i
| ing and determining loans BY the
| War Finance Corporation.
| q assume you know there IS l;f@
a single penny in the treasury OF the
War Finance Corporation. II
| makes any loans it must sell bonds
| in the open market. thus absorbing
| credits that farmers might otherwise
| directly obtain; else the United
/ States Treasury would have to bor-
! row money in the open market tol
/ the CORPORATION, likewise, absorbing
+, funds that farmers might directly OBJ
!, tain. The funds of the corporation
! are not to be loaned to farmers fol
the purpose of holding crops for a
] higher market Or making new crops
. but only to tradesmen to sell and snip
| at prevailing prices; in other words
| the avowed purpose Of the act Is TO
| stimulate an export trade which.
/ for the year just ended, was the
/ greatest of all history. exceeding by
! 1891, 100000 that Of the preceding
year.
How many farmers or nort1cul-
/ turists in Virginia are engaged in the
business of directly exporting their
own products? And how many OF
/ these are willing TO pay the War FL
nance Corporation at least l per cent
] and maybe more. above the COM
merciaI rate of interest, after furnish
/ ing good Endorsements and adequate
security? 1t is my considered 1udg-
ment that there are few farmers In
/ Virginia engaged in export trade, If
fortified with good Endorsements
! and adequate security who could
| not borrow money from their own
! banks at less than the excessive rate
which the War Finance Corporation
| is compelled by law to charge.
/ The War Finance Corporation
announced about ten days ago that
! il was open for business As l
/ have indicated, the corporation VII.
/ have no funds which ii may loan TO
a farmer or a horticulturist unless
| that farmer or horticulturist ig en-
| gagged in the export business. But
the fact is that not a single export
/ house in the United States dealing in
/ farm products has made application
! for or inquiry about loan. The only
I application made, as | am Informed,
| is by q lumber concern. and TINS
concern was not willing to under
t write its own proposed export trans"
! action, nor would it furnish ample
security by Endorsement or guaran-
ty.' 1t wanted to use public funds
! and have the War Finance Corpora
ton assume all the risk Of collect
ing the debt from q customer in
bankrupt Europe.
What some farmers need is
market for their products and not
merely credit at a high rate of in
terest. What good Will credit on
this side the Atlantic do Virginia
> tobacco exporter - remember. the
more grower of crops is not permit
ed to borrow at all under this Law
when the warehouses of foreign TO-
bacco moHOpolies on the other side
Of the ocean are crowded with
tobacco and their agents are not buy
ing except in small quantities and
at d very low price? II is market
that the tobacco growers and export
era need, and not credits with which
10 move the crops. My neighbors
and I have several hundred barrels
of apples in storage We have credit
at the banks. but no market for our
| apples.
As far as credits are concerned.
there has been a lot of designing
and wicked misrepresentation cai-
culatcd to foment discomfort. Inc
/ Federal Reserve banks located III the
! agricultural region of the United
~ Of v