The Washington times., 1922-12-11


The war statesman was due to
arrive here this forenoon from Cres-
son. Pa. In the Allegheny n,oun.
tains. where he rested yesterday
His address before the farmers to.
day win deal mostly With foreign
markets.
Immediately after his speech he
will return to New York. He viii
said for France Wednesday.
fund to be remarketing. Otherwise
credit for more orderly marketing OF
crops, which have the Wafehoused
product AZ collateral. and for live
stock would have to pay as high a
rate of interest an that which was
granted for productive purposes.
which has no such marketable col
lateral.
Initial Capital.
"The initial capital Of tfp new
system could! be obtained out Of
the liquidation of the War Finance
Corporation. The amount can be
readily determined by an investiga.
ton to ASCERTAIN what are the an.
nual credit requirements for the
three purposes, necessary to supply
present sources. So.
Assuming that the new system
would have capital OF $4,000, 200
to 500, 900, ,000-to be increased II
found necessary-and the right to
issue its own obligations to the
you can readily see how, In addition
to the present credit facilities, the
farmer would be well taken care Of.
- A,snk "a
complaint in respect to credit.
1.-The country should be divided
into regions for the establishment
Of the regional loan institutions
somewhat on the basis Of the Fed
Reserve system. Each suitable To-
cality within each Of these regions
should form It's own organisation
the regional institution.
Bills In Congress.
"Tt Ia not necessary ana might
be confusing for me to 60 into an
elaboration Of the details Of the
method of creating and administer
ing such b system 40 am recom.
mending. There are q number Of
bills before Congress. aiming IN
this general direction which II
should be easily possible to COM
ine. \uniting in one nneasure the
fundamentals Of system here pro-
posed. Since preparing this ad-
dress there has been introduced
of the things herein suggested.
with q most valuable addition Of
admission of small banks into the
Federal system.
'As in the case Of the land banks,
provisions should be made for the
repayment Of the original capital
investment Of the government. In
the end the Government would be
repaid not only in the money sense.
but also In the greatly increased
prosperity Of forty per cent Of the
populItion; yet, Of the whole popu.
lation.
Not . Panacea.
This institution win not be q
panacea for all our ills. and indeed
may not actually be used a. much
as now anticipated. But its poten.
tial credit.pr0viding facilities will
be there. and operate powerfully
as a restriction Of the practices OF
which you now complain.
The proposed system would place
agriculture on an equal footing, as
far as credit IL concerned, with other
industries. That In only beginning,
but It Is q proper beginning. have
not been called on to speak of the
additional things. that are necessary
but may ray that one OF them has
to do with greater cooperation in
marketing; this am glad to say IL
Increasing By leaps and bounds. Let
us always remember that we cannot
enjoy the fruits Of cooperation un.
less each one gives us a certain
amount Of his individuality and al
lows specialized organization, the
cooperative sciety, to do his mar
keting for him.
Another matter Of very great
Importance which IL q part Of al.
most every program for the removal
Of Unnecessary burdens upon agri.
culture, n that Of carrying Of farm
products from the Government to
the coneumer. The production prob
lem. There 10 much to be done
here Of vital importance to the
farmer. ,s4
Immediate Relief Possible.
"But ] would urge upon you the
necessity OF concentrating on the
doing OF one thing st q, time. I be-
lieve that the matter Of credit II
basic and primary. Ard would
also urge you to have your leaders
devote their attention to this matter
which II now before Congress and
provision for which could be placed
upon the statute books within 4
very few days II you get behind Il
and do not allow yourselves to be.
come diverted BY too many scat.
tered efforts.
Again, in considsrine the whole
subject, one mubt have IN mind that
no matter what credit facilities, no
matter what trAnsportation and
what distrfbutive agencies you may
hays there must b Z msritet; ana