Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-09-03
ADDITIONAL CREDIT
URGED FOR FARMER
IN j. s. CONGRESS
BY THEODORE TnLER

|
WASHINGTON, Sept. 2.--In ad-
vance of the filing of a report by
the joint commission on agricultural
inquiry. Chairman Sydney Anderson
issued a statement Wednesday night
asserting that additional credit ia
cilities for farmers are imperative.
He indicates the commission in its
report to congress will recommend a
concrete plan for bridging the gap
| between short-time and longtime
credits. At the outset, the govern
ment would render financial assis-
lance.
THE additional credit" Mr.. An
derson says, must be such as to
conform to the farmers turnover,
and of sufficient f1eXibility to meet
the varied requirements of different
commodities. 1t must be extended
for a sufficient time to enable pay
ment to be made out of the earnings
of the farm. without frequent renew
ais, which add to the expense of the
| borrower in fees and commissions"
After hearing testimony for sew
eral weeks, Chairman Anderson, of
the congressional commission, COM
posed of five senators and five house
members, observes: There is imme-
date, imperative and conclusive ne
cessity of setting up permanent ma
chinery to furnish credit for farm
ers' production and marketing pur-
poses, running from six months to
three years, to fill the gap between
short-time credit furnished by the
national and state banking systems
by these systems, farm mortgage in
stitutions and the federal farm loan
system. 1t is clear that machinery
of sufficient scope can be established
only by federal legislation, such as
brought about the blishment of
the federal reserve system and the
federal farm loan system. This ma
be self-sustaining and should not
require government support, except
possibly for the initial capital re-
quired to put into operation. Such
system must be comprehensive
enough to meet the requirements not
only of the large farmer borrower,
but also the small farmer borrower
with limited assets"
Representative Anderson says it is
essential that there shall be credit
agencies to deal directly with the
farmer and to meet requirements OF
every commodity and locality. Com
mercial banks, state and national,
and farm loan associations now es-
tablished by the government, may be
utilized in some manner and aug
mented by new agency in the form
of co-opera tive credit associations.
The second essential, he says, is an
agency to convert large number of
small obligations fthe farmers into
short-time debentures which can be
sold to the investing public. Chair
man Anderson thinks whatever new
agencies may be created must use not
only existing banking institutions
and primary credit concerns but the
farm loan associations. He predicts
that the congressional investigation
legislation and credits to complement
the credit facilities now offered
through the farm loan system and
the federal reserve system, and to
give the American farmer the most
comprehensive and flexible credit
system in the world.
Discussing the two possible agen-
cies, Chairman Anderson continues:
1.-The character of both agencies is
largely dependent upon whether it
is proposed to have the debentures or
securities absorbed by the deposit
pool, represented by the deposit of
the national and state banks, and the
liquid assets of the country, or by the
investment pool, representing the
credit ordinarily invested in long
time securities. There is, in my judg-
ment, no reason why both pools can
not be drawn upon for the proper
credit requirements for farmers. In
setting up the agency to deal direct
ly with the farmer borrower. it is
desirable to use the primary credit
agencies already existing. and there
would seem to be no reason why it
should not be possible to use both
the commercial banks Estate and ma
tionaD and the farm loan associa-
tions. In like manner, in order to
set up the agency to distribute farm
credits to the investing public,
whether in the form of the original