Evening star., 1921-06-26
U.S.FUND TOASS|ST
FARMERS OPPOSED
by ADMINISTRATION
Secretary Hoover Announces
Private Capital Is Being
Modified.
FORCED LIQUIDATION SEEN
UNLESS RELIEF IS GIVEN
Plight of Agriculture Recognized,
! But Government Believes It
Should Keep Out of Business.

Ire aiin ninlS'f2tlon Is noDliIZlnS
private banking credits to prevent the
forced liquidation OF farm commod-
tiles, particularly cotton and sugar,
Secretary Hoover Of the Department
of Commerce told Senate committee
yesterday. He was appearing in con-
nection with a hearing on the Norris
bill to create hundred million dol
lar corporation to aid in farm exports.
Mr.. Hoover expressed disapproval of
the bill. but said that the admins
tration recognized the plight of the
American farmers and was seeking
to aid them.
Let us first attempt" he said, Ito
prevent forced liquida tion of these
commodities by mobilizins private
capital. as has been done already in
the cattle industry. and then if we
fail there viii re time enough to get
the government to take up the burden
directly" Pointing out that the
United States had sent to Europe "a
billion dollars worth of foodstufs N
the last eleven months" Nr. Hoover
said il was evident that the govern
ments and peoples there find money
for foods" but conceded that the sit
uation as to cotton was worse. be
cause they tend to reduce their normal
requirements Of textiles"
Explains Funding Bill.
"One wishes to make many mental
reservations upon the possible recu-
peration in Europe" Mr.. Hoover said
in the course of a general discussion
of the economic situation overseas.
but the securities possible to obtain
cannot be classed as Al
Chairman Norris referred to the
administration bills which Congress
has been asked to pass. empowering
general steps to fund all of the war
debts which the United States holds.
THE object of that bill is to get
these loans in some sort of shape for
handling" Mr.. Hoover said. and when
pressed for statement as to whether
the Treasury intended to permit eN-
change of German reparations securi-
ties he said:
We'll. it is quite possible that the
Treasury could get better securities
by exchanging some of the securities
of new nations for German bonds"
England owes four billions" Sena-
tor Norris said DO you mean to say
we would be asked to take German
bonds against this debt and that they
would be better
No" Mr.. Hoover responded. Il said
exchanges might be made which
would give us better securities for
less good. so far as I know"
Il don't want to appear to depre-
cate any proposal intended to assist
! the agricultural industry" Mr.. Hoover
/ said. because the situation today
which has reduced the purchasing
power of the American farmer 61 per
cent has put him to the most serious
! duress agriculture has ever had to
! face. The situation is the most acute
and dangerous in the country at the
present moment. Yet, l cannot feel
that the extension of further credit
| facilities for the supply of food
| products to Europe would give any
| adequate remedy"
Cotton Serious Problem.
While sixty million Europeans still
are under food restraint. rationng
| or similar systems" Mr.. Hoover said.
Poland, Austria and "in a minor de-
! gree Czechoslovakia" werc the only
countries where a diminished food
supply might result from failure OF
credits. European harvests. generally
good. he said, might be sufficient to
a5c h,,f hat in
thirty million bushels of wheat was
| all that would be involved. He added
that Europe found the money some
| how to take a billion dollars in food
| from the United States in the last
eleven and half months
"As to cotton. however, the problem
of disposing of our surplus is much
more serious" Mr.. Hoover continued,
, because experience has demonstrated
that the governments and the peoples
will secure their food. but that they
will cut in textiles.
There is a marked tendency in
| Europe to live on their own food
resources, and make their harvests
stretch as far as possible through tho
wear. which indicates that the Ameri-
c.n farmer must carry hereafter his
crops for a longer period through tho
wear because the European demand
will only come at later months.
fFavorn Private Capital.
! 1--WE are trying to set up such
machinery as will prevent forced
liouidation in cotton and sugar and
| negotiating through the banks OF
! the county. II this cannot be done
through the mobilization Of private
banking capital in such a way as to
avoid putting the burden on the gov
ernment, why then we may have to call
on the government.
..Happily, there is a short crop of
cotton this year, and there have also
been artificial conditions which have
depressed the market, such as the long
strike in England and the repafsso-S
discussion with Germany, which
worked to cut our cotton exports. The
shelves Of the world are growing bare
7TSOnfinued On Pa Pe Column a n ..