Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-08-18
|AMOROUS URGES
| LOANS To FARMERS

WASHINGTON, Aug. Icon
tending that the federal farm loan
bank system is not functioning prop
erly because of the slow sale of it's
bonds, and that the federal reserve
system is making too much money
and restricting agricultural credits.
Martin Amorous, of Marietta, one Of
the extensive farmers OF Georgia
and president of the Cotton Ware
house, incorporated, testified Mon
day before the joint commission on
agricultural inquiry.
Asked for concrete suggestions for
the relief of the farmer, Mr.. Amor
Gus told the congressional commit
tee that the proper financial relief
might be extended by the reserve
and the farm loan bank systems.
1.-THE farm loan banks" he said,
I know many applicants in Georgia
who have been unable to botain loans
because. these banks haven't the
money"
Senator Lenroot said he under
stood the System was getting In
money.
mot in sufficient amounts to be
Of real help said Mr.. Amorous.
What I would suggest IS that in
stead of trying to sell its bonds for
1000, the federal farm loan banks
should issue SIS and $40 notes or
bills. If the bonds cannot be sold
what good is the system?"
But wouldn't the issue of more
urrency merely cause imitation and
increase the cost of what the farmer
has to buy?" asked Senator Len
root.
II am not certain about that" said
Mr.. Amorous. Anyway, L Woula
costs a dollar and I had the dollar
to pay for it, instead of situation
where steak costs quarter and we
haven't the quarter" to,,oa
Mr.. Amorous went into detained
discussion of the financial and eco
nomic situation.
He was accompanied to the com
mittee room by Representative Cor.
don Lee, Of Georgia. who sat .a
throughout the hearings: Commit
tee members, notably Senator Pa9
Representative Summers asked Mr..
Amorous many questions concerning
farm conditions in Georgia and he
related how the low price of cotton
has impoverished the south and tled
up millions of dollars in loans ana
farm credits. He estimated there are
10000 Obales Of cotton now being
held by Georgia farmers, neither
producers. merchants nor bankers
being able to sell, because such sales
would hardly pay fertilizer bills. I'm
less the government e&lSl1oS c1duA-
tional credit to tide the producer
over, he said, conditions will again
be ba dthis fall.
Mr.. Amorous referred to the enor-
nous profits of the federal reserve
banks. The reserve system, he said,
today had practically all the gold in
the United States. It's interest rates
h adbeen too high and it had made
from 100 to 200 per cent on it's CAPT
tai, although not intended as prof.
it-making system.
Another thing I would do" he
suggested, sis to buy in the capital
of the reserve bank system and let
it be operated by the government.
If there is to be 'profiteering' by
this system, let the government do
the profiteering and it will at least
help the people by reducing the
amount needed required to run the
government and in lowering taxes"
1.-The banks Of the country" said
Mr.. Amorous, "have become cold
storage houses for frozen credits.
I know of no better way to express
it." All along the line, he added,
money has been taking too great
toll from trade and industry. One
reason for the restriction Of farm
loans in Georgia, said Mr.. Amorous,
was the seven per cent discount
rate of the Atlanta reserve bank.
The member banks said they could
make no profit on transactions after
paying a seven per cent rate to
the reserve system.