The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1921-12-22
SEEK PERMANENT
FARM LOAN PLAN
HAUGEN COMMITTEE MEETING
AT PIERRE DECEMBER % AND
20 NEEDS STATES IDEAS.

Pierre, Dec. 22.-Officers of all
the farm organizations in South Da-
kota are urged to cooperate with the
department of agriculture in insist
ing upon permanent form of agri-
cultural loans when the Haugen
joint congressional committee holds
a meeting at Pierre December % and
80. Hugh N. Allen, special assistant
to the commissioner of the state de-
partment of agriculture, has sent the
following letter to all heads of farm
organizations in the state:
"This department is just in re-
ceipt of information that the Haugen
joint congressional committee on
short term rural credits, will hold
hearing in the state capitol, at st.
Paul, Mimi, on Wednesday and
Thursday. December % and 20. for
the purpose of securing such facts
and testimony as will enable it to
present a plan for federal legislation
which will provide in permanent
way for adequate machinery to ham
die the financial necessities of agri-
cultural and livestock industry.
"This department has been request
ed to see that South Dakota's inter-
ests are represented and of course we
desire the cooperation of your or
ganization.
s.4The time is too short to carefully
arrange for such orderly presenta-
ton of testimony as we might wish,
but am sure that we can easily
make it quite clear that some ma
chinery must be devised whereby
agricultural oans may be mac with
maturity date in keeping with
reasonable expectation of IL lover
from farming business that will r
init liquidation.
'I believ il must be conceded by
everyone in South Dakota whether
farmer, banker, or whatever busl-
ness one may be interested in, that
one of the principal causes of our
present condition is that the present.
financial laws and practices do not
make available a very material por-
tion of the farmers real credit.
Extension of farming and live
stock business based on expectation
of continued credit has led to seri-
Gus losses when that credit was ter
minated. Sacrifice of foundation
herd, marketing of immature ami
mails. dumping of all kinds of farm
products, no money for continued op-
Grafton, nor even for taxes and ac-
tual living expenses, have also been
the direct consequence Of inadequate
credit facilities.
1--WE must not waste our time in
blindly blaming the banker, the mid
dleman, or the government. We must
go to the fundamentals, and, we be-
lieve, this lies in adequate provision
for creating a reservoir in. which our
six month to three-year credit may
be stored.
.We must make our promissory
notes read in fact: II promise to
pay" with reasonable chance of so
doing, instead of 'T promise to re-
new" as they now are, in effect.
"It is quite unnecessary for me to
enter into any further discussion of
this subject at this time. 1t is suf-
ficient, hope, to state that we be-
lieve the time has now arrived when
some relief from the present situa-
ton may be obtained. and permanent
machinery devised which will for
ever remove one of the greatest haz-
ards faved by the farmer.
"Your cooperation is not only re-
quested, but we are depending upon
it.
I'VE suggest that you gather or
prepare all. available specific infor-
nation, and either arrange to pre-
sent 1t through representative OF
your organization, or forward it to
this department for presentation.
Kindly let me hear from you at
once and indicate just what you will
be in position to do in this matter
in light of the short time available"