The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-11-28

KANSAS CITY. Mo, Nov. 81
Probably the most important prob
lem that faces the financial inter-
ests of the Middle West is the mat
ter OF rural credit. Despite the large
percentage of grain marketed early
in the autumn liquidation of indebt-
edness has been only partial. and
the country banks realize that they
have yet several months before there
is additional Income from the pro-
ducing section. During the past
month many group meetings of bank
ers. covering much of the farm coun-
try, have been held, and at each
this subject has awakened the keen
est interest.
1t is generally believed out here
that any marked increase in the price
of farm products in the Immediate
future is not to be expected; that
the only relief for the producer In
sight for some time to come is in
lower prices for the commodities the
producer must buy. or such reduc-
ton in transportation and distribu-
ton costs as will have similar eff
feet. The day of the buyers strike"
months ago. has passed. The pro-
Queer is not wilfully refusing to buy,
and thereby delaying the return of
good times: he is postponing pur-
chases because of limited financial
ability. This is generally realized all
through the interior. and discussions
regarding trade and business gener-
ally are based on that premise.
Need for Credit.
What is needed greatly is credit
that will enable the producer to Sc
cure a period of recuperation during
which he can bring his affairs into
better relation with actual condi-
tions. He cannot on demand meet
his obligations. Forced tales of
land or chattels make a most dis
couraginc return when translated
into dollars. Out in Central Kan
sas last week piece of farm land
was sold at sheriff's sale to settle
an estate. Fifteen months ago not
an acre of land in that county could
have been bought for $40 an acre.
1t had been appraised at $50 an
acre. but at the sale no such bid
could be secured and the sale was
abandoned. Land is traded, but it
will not sell for cash at reasona BILE
figure. Bankers know this. and they
know that the same condition exists
Hence they cannot afford to force
sales to make collections.
Somehow there must ne a way q.
give the debtor opportunity to work
out his own salvation. which he will
do as he has done before. Farm
mortgages and other non,iquid Sc
curities must be carried. The mort
gage agents have applications far in
excess of any sums they have at hand
for investment. The Federal Land
Bank gives some assistance, but not
nearly enough considering the de-
mand. While easier money is evil
dent in the financial centers. the
farm country still has a limited in
vestment fund. the result largely of
the sudden defation of the value
of products to what is in effect, and
mostly actually, a prewar level
The Holiday Trade.
The trade hopes for an active holt
day business and stores have made
rather liberal purchases. most of
them, of course, contracted months
ago before the defation in price
levels for the products of the agri-
cultural West. Merchants believe
that while available resources are
not abundant, the old-time spirit
Will loosen purse-strings and with
fair profit margins they will hay.
simething to show for the next
month.
The fact that the former antag-
onism against buying is So well OBJ
liberated may bring realization. but