The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-09-01
BY WILLIAM r. sAN5oRN

~ WILLIAM n. SHNoO"
The agricultural relief act to De put
into effect by the war finance corpora
uon is of the utmost national import
ance. II Is not merely an act LOT
the relief OF farmers. as Glass; anu
to brace the credit of food exporters
1t is an act for the relief OF the people
OF the United States by the movement
OF our surplus crops TO Needy peoples
abroad and to put the money tnus pala
out into circulation.
The question may be asked: "Can
the war finance folks swing the deal?
Can they get, or have they already
gotten the cash or government credits
needed for the job?'
To both these questions the answer
is Yes. So far as the. money is
concerned, and all the credit facili-
ties required, the finance corporation
is as rich as Uncle Sam. The cor
poration is, in fact, the government
itself, under another name.
The relief bill, as is generally
known, provides for the loaning up to
one billion dollars to facilitate the ex-
porting of farm commodities. Hav-
ing the money in abundance and the
stuff to export the next question is
the finding of buyers, men not only
willing to buy but to be able to make
satisfactory guarantees of payment,
for it is not our purpose to pay cash
for stuff in this country and to donate
it abroad We are to engage in a
business transaction of world wide
significance
Where Money Comes From
The war finance corporation has a
capital stock of $500, 200, 900, all sub
scribed and paid for by the govern
ment 1t also has power to issue and
to have outstanding at any one time,
six times its capital stock, or $3,000.-
100000. 1t may further issue notes or
other obligations for an additional
billion. And here is a most helpful
proviso: Federal reserve banks are
authorized to discount the paper of
member banks, secured by bonds of
the war finance corporation" This
entire arrangement makes a vast
sum of liquid cash and credits avail
able, throughout the entire country.
Wartime Power and Functions.
The revival by law of the war fl
nance corporation simply places that
body on wartime basis. The one
billion dollar credit bill does not pro
vide for the use of all the money and
credits of the corporation. but does
give us the use of one billion for the
purpose described.
But the use of this billion dollars
does not afford US a sure market at
a set price, wherever we come into
competition with other nations having
a surplus Take wheat, for example
India, Canada, Argentina and Aus
tralia all have more wheat than they
use at home.
If they are marketing surplus crops
we must meet their prices. or wait
until they have done to market ours,
which is out of the question.
As to corn, live stock and meats we
are in a more commanding position
We can practically make the prices
on these items, and this is true large
ly as to rye and barley for use as
bread We are also the largest ex
porter of flour and of corn in the form
of meal
Financing the Farmer.
What the individual farmer is most
interested in is his own financial
problems: how is he to personally gel
money on his crop assets?
The first answer to that question is:
in the manner he has raised money
in the past" The second answer is:
BY tieing up with some cooperative
body which is legally, economically
and financially sound" Such co
operatives can now obtain the same
credit facilities as are available t
large manufacturing and industrial
concerns.
This is real progress and is the re
suit of recent legislation and becaus'
of appreciation by the government
that the agriculturist now needs an
deserves all the help the government
can consistently offer.
Is Emergency Measure.
The agricultural relief act, is cor
structive piece of legislation. II rec
ogniZes the new conditions in GU
domestic and International trade.
is designed to assist in financing tn
carrying of farm and food commoditie
until they can be marketed in an OF
derby manner. 1t cannot be expecte
that outside nations will be eithe
willing or able to buy a years suppl