The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-02-17
KELLOGG SPEAKS
TO THE FARMERS
Gopher Senator Feature
Crookston Program
SITUATION OF TILLERS
Face Serious Financial Condi-
ton and Industry Is In
Danger
Especial to The Free Press.1

X Crookston, Mimi, February 10
United States Senator Frank B. Kei-
logg. in an address before the con-
Vention OF the Red River Valley Fa,
mers association here said in part:
Mr.. Chairman: was urged by
the officers OF your association 10
come TO Crookston and deliver an
address to the farmers. l found that
after the disposition of the CO. opera
tive marketing bill, which I had
charge OF In the senate, l could be
ing my duties, and gladly aVailed
myself OF this opportunity to discuss
with you what has been done and
what must be done in solution of
the greatest economic problem which
has for centuries confronted the
world.
81 shall not spend my time in use
less denunciation or railing against
conditions. 1t is the part Of states
man to earnestly and intelligently
consider the condition OF the country
and to find a remedy for the inc
qualities and the economic evils
within the bounds of constitutional
esssry for me to take your time in
discussing a condition which we all
know TO exist. The farmers are in a
very serious financial condition and
the industry in danger of such a de-
cline as to bring disaster to the ma
ton, for farming Is the basic indus
try on which all others rest
Cause of Present Depression
What is the cause of the present
depression? What has been done by
the congress to remedy 1t, and wha&s
can be done in the future? The i'm
mediate cause OF the great financial
disaster TO the farmers is the great
decline in the price of farm products
as compared with the average of all
other products. Tho farmers pro-
duct has decreased more rapidly and
is at 3 lower level than the prices of
labor and supplies which he MIST
purchase, and II is the restoration OF
equality between prices of farm pro-
ducts and prices of other products
which is one of the most difficult
economic problems ever confronting
the people.
las said by the late agricultural
conference in Washington. Inc
present agricultural depression is
admittedly an outgrowth Of disturbed
world equilibrium caused by war,
and l might add, is worldwide in its
existence. Bear in mind that there
is no magic solution Of these prob
lens by enactments of laws, and that
TO a considerable extent the remedy
is in economic readjustment by the
natural forces Of supply, demand
trade and commerce Yet there is
can do to aid the farmer in such a
readjustment as to again bring pros
pertty to the farmers in this great
industry. The president, his admin
istration, and the congress, for the
first time in many years, are alive
to the distress OF the farmer and to
the danger to the nation If TINS con-
dition continues, and to show you
that the congress, notwith standing
the pressing necessity for legislation
readjusting the country after the
great war has not neglected the far
mer, let me recite some of the meas
ures which have been passed.
Agricultural Legislation
When the last congress met in
April it set its face determinedly to
enact legislation which would aid
the agriculture Of the country. Time
Will not peprmit me to discuss all of
these problems. beg leave to cite
some Of these laws which we have
passed:
"The emergency tariff law for the
benefit of agriculture.
The packer control law.
1.-THE law to regulate future trad
ing OF grain exchanges.
THE law extending the powers of
the war finance corporation, so as 20
relieve the credit situation among
the farmers and provide a foreign
market for their products.
THE law appropriatilg 5.000,0 900
to aid the federal farm loan banks.
1.-THE law authorizing the farm
loan banks to sell bonds at IL
per cent without any increase in he
rate of interest to the farmer.
THE cooperative marketing bill,
. which has within few days passed
no aanafa
"And a bill which has passed the
senate, authorizing the PRESIDENT to
appoint a representative of agricul-
ture. on the federal reserve board.
81 might add that it has been ny
pleasure t to support s,,. every ON 0ne irs Of
tilted in a few remarks about two or
three of these bills, although my
main object is to discuss future rem
edies rather than past accomplish
ments.
The Anderson Bin
In touching upon the federal bank
ing system Senator Kellogg said
that "a bill has been introduced by
Representative Anderson (of Mime
sota), who is chairman of the joint
house and senate committee on agH
cultural inquiry, providing for 4.
system of federal reserve banks TO
rediscount paper having a time OF
maturity not less Inan SIX moHtnS
or more than three years. The bill,
in substance, provides that there
shall be established in the farm loan
banks a separate department, Great
ed under limitations and conU. dons,
adopted by the farm loan board, 20
rediscount farm paper of the class
mentioned. In substance, it author
Nizes the twelve federal land banks
in the United States to act as re-
serve banks for farm paper, the
same as federal reserve banks now
operate, except that these farm Joan
banks may discount paper having II
maturity from six months 20 three
years, which the federal reserve
banks cannot now rediscount. 1t au-
thorizes the federal farm loan banks
20 issue debentures, secured by -.
farm paper, and to sell them in the
market, and the federal reserve
banks are authorized to purchase
these classes of securities.