The Washington herald., 1921-08-20
Valuable Endorsements.


rural credits backed by multiple insurance
rcame from Representative Ogden Mills, during the
debate on the revenue bill Mr. Mills was Illus
etrating the urgent need for liquid capital, need
that will be largely supplied by the repeal of the
t@kcess profits and the elimination OF the exces-
ssiye surtax rates on incomes. Among his several
illustrations this:
- Let call the attention of gentlemen from
- the rural districts this further proposition.
- Inside of three months this House will be consid-
a. ering 4 proposition to provide farmers with
80 credits running from year to two and three
- years, because there exists today welErecog-
y nized gap in our banking system. The ordinary
sources of credit, the short-time commercial
- credits do not meet the situation because these
- mature ordinarily in from sixty to ninety days,
- months and the cattle raiser up to three years
~ credit. IL IS not proposed by gentlemen who
have studied this proposition, and who will ad-
= yocate the measure, to tap the commercial credit
= q fund of the country. No; they propose to tap
\ = the investment fund and very properly so.
~ would point out them that il is going to be
mighty difficult to tap the investment fund of
- the country If you drive that investment fund
Into tzx-exempt securities, or if you propose to
tax it to the tune of 70 per cent to pay govern
ment expenditures.
- 1t must have been rather surprise to the agri-
cultural bloc to hear complete and striking a
statement in favor of this most important agrcul-
tufal measure. come from a member representing
a=high class residence district of New York City.
The more so as it showed that Mr.. Mills has made
4, thorough study Of this measure and has a COM
pretending grasp of its underlying principles.
10, Yesterday Dr. w. J. Spillman supported this
same measure before the House subcommittee of
Banking and Finance. DR.. Spillman organized the
Bureau of Farm Markets of the Agricultural De-
partment and in charge of the bureau for six
teen years. Probably no one knows more than he
iof the actual conditions on the farms of all the
States and OF the financial needs of the farmers.
lln his testimony after outlining provisions made
and under way for land and marketing credits, he
turned to productive credits and said:
'.. / am OF opinion that ample personal credit
OF the kind here under consideration would do
to stimulate farm production than any
ether zone thing. 1t would also save farmers
y, enormous sum OF money every year. This bill
-. has been very carefully drawn, and would
~ would make every idle dollar in the country
"a. available for productive purposes TO any farmer
needing it and who is really entitled to credit.
ma 1t would do much to obviate the evils of the
',,. tenant system.
"' A third man. from the Middle West, whose
large business interests make him globe-trotter
and who is well informed to agricultural condi-
lions in Western States. recently surprised The
Herald with his familiarity with this bill. Dis
rrtssing it, he said he wished it could make some
.ptovision to compel farmers to take of their
machinery, and voiced general criticism of the
Unprotected and exposed to all kinds of weather.
He was told that what he desired would be one of
the results of this very bill.
The credits would be extended by the neigh
bprs of those asking loans by small group-caled
~ ommune-of the most successful and so the best
ESrmers of the immediate district. Such'men do not
gain their sovency by leaving their machines un-
protected, by not properly caring for their stock,
or by any other wastefu habits Nor will they
give credit to others who have such habits, espe-
cay as the bill places joint and several liability
.uPon them for every loan they make. More than
this the central State bank handling these credits,
ould Dust a commune that became careless gen.
etous in its loans, and the auditors of the insur
aaace company underwriting the credits, would GER
tSinly report such were extended for machines
left unprotected, to farmers of that type.
dr., 1t will be of the best features of such law
in operation that it will only provide credit
increase production but that it will waste
Jul habits. bring better grade of farm management
and set standard which all must reach in order
to secure financial help The indirect benefits will
be almost important the direct. 1t will elm
mate slipshod methods and, too, by inducing bust
mess habits and bringing the farmers of districts
aud States into contact by common bond, do
much to promote agricultural organizations with
more exact and So more secure, business methods.
Eor-..- Dx..;J.,1 UT;i-a. L.. L..