New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1921-09-23
HOW THE FARMER
WILL Be AIDED
DIRECTOR OF THE WAR FINANCE
CORPORATION ON THE AeRI-
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 3. CLARK.

Slowly.
BY EDWARD 8. CLARK.
Westinghouse mingly officials oi
government directly charged with tn,
work of administering the agriculture
relief act, which was passed by con.
gress and approved by the President
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 plan
ming the work and is expressing con-
hdence in real accomplishment.
Eugene Meyer, Jr, is the managing
director Of the War Finance corpo-
ration. His views on the agricultural
relief act ought 10 be Of interest, for
his organization is charged with the
work Of its administration. His views,
TO be approved, or perhaps combatted,
according 10 the viewpoint, are as fol.
lows:
The agricultural relief act is a
measure Of great Significance to our
agricultural interests. 1t is n very
constructive piece of legislation, and,
In my opinion, is thoroughly workable
from the administrative point of view.
Ii recognizes the new conditions eX-
listing in our international and domeS-
tic trade and aims 10 meet these o N
ditions by giving the War Finance
corporation power to assist in financ-
Ing the carrying of agricultural ON
modities until they can be marketed
In an orderly way.
The inability and unwillingness 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 ne
custOmed to do In normal times,
coupled with the failure of our own
merchants and manufacturers TO car
ry normal stocks, has brought about
a situation which makes it necessary
for us to market our staple agrlcul-
tural products over n longer period
than usual.
Cotton Situation an Example.
This situation Is clearly indicated
In the following extract from IA report
from an investigator of the Depart
ment OF Agriculture, who is now in
Europe studying the markets there for
American agricultural products:
THE cotton merchants over here in
the countries visited do not think II
sound business for American shippers
OF banks to advance too much credit
TO the cotton mills. They say that
mills car arrange the necessary
with local banks TO buy cotton
only they can show an outlet for
he goods; thar extending liberal cred
Il from America will tend to increase
The risks assumed by the mill and may
lead to speculative ventures on the
Of the mills.
'The merchants point out that mills
should buy cotton only AS they are
to sell goods probably and then
the mill should cover its require
with cotton close at hand. They
90 so far as to say that the merchant
should sell cotton on call for the mill
10 fix the price when the goods are
sold. This suggestion seems unsound
% me, as II involves too great n risk
'or the seller, making him take
'hances which rl%ghtfully fall on the
manufacturer. But at any rate the
,,t1yngftav thnt .aaGnYl1a at.Al,u
be placed I'm the leading Euro
)ean markets and hedged In dollars,
Gems sound.
Exchange Rate Interferes.
"The price can he fixed when the
is consummated and at a rate Of
Exchange which is taken into consid-
when the price is determined.
These merchants point out that they
annot carry large stocks as in former
ears as a change in the rate of ex-
'hange might cause serious losses,
nd that therefore they must Of neces-
ity buy cotton only as 1t is needed.
I they follow u this plan il will
safe business Il European mills,
ut a slow and long drawn-out cotton
eason back in America, aud cotton
might as well make their
lans to market their crop gradually
$ the demand warrants.
THE pressing need at the present
me, therefore. is for additional fa-
TO finance our staple agricul-
Iral products so that they can be
marketed more gradually than for
lerly. The agricultural relief act
inns Il provide these facilities along
ound lines. and in a way that will
e helpful not only TO the producers I
but also 10 the whole !
Of the country. ]
at should be clearly understood [
lat the act is an emergency measure, I
to meet the abnormal condi-
ons now confronting us. Experience
connection with it's administration,
pwever, should enable us to deter
inc to what extent. If any. addi- i
onsl financial machinery Of a per-
anent character is necessary to take
of the marketing Of our staple r
products i'm an orderly l
ay under normal conditions
Conference on Unemployment.
There will be held in Washing
m shortly a meeting of men TO y
axe what is called IAN Intensive e
n n