Morris tribune., 1922-12-29
LOW INTEREST RATE
RATHER THAN PRICE
Senator Cliff Reports Plan Of Gov
ernment Credit To Farmers In
stead Of Price Fixing On Wheat

Bankers and business men Of Stew
ems, Big Stone, Traverse and Grant
counties were told by Senator F. L.
Cliff last night at the meeting at the
commercial club rooms in Morris,
that there had been suggested, in the
Washington conference of Congress
men, which he attended, as remedy
for the desperate situation in which
the farmer has been for the past two
years, a remedy which apparently
is the most feasible of
government credit direct to the farm
er at low rate of interest and the
improvement of government grain
grading by which the price paid for
wheat would be based upon its actual
milling value. This meeting was
scheduled at this time to accede to
Mr.. Cliffs request to have it before
the opening of the state Legislature
! in January.
! The following interview with Sen
ator Cliff is taken from the Orton-
Vile Journal and is along substan-
TALLY the same lines as his address
last night in Morris.
Senator F. l.. Cliff returned the
first of the week from Washington
D. c., where he together with John
F. Sinclair of Minneapolis, had ap-
| peared in charge of the Minnesota,
North and South Dakota and Mon
tana delegations, before the Senate
and House Committees investiga-
ting conditions in the agricultural
districts of the Northwest, in an eff
fort to secure immediate relief
I for the farmers of the grain rais-
ing states. - ID -
Senator Cliff feels that the trip
will prove of great benefit to the
agricultural interests, even tho no
definite action has as yet been taken.
The Northwest delegation went be-
fore the committee to explain con-
ditions in the spring wheat states
methods under which farmers are
compelled to market their products
together with summary of the con-
dition in which our farmers find
themselves after two years of low
prices during which time they have
been compelled to market their pro-
ducts at lower than pre-war levels
buy machinery and other supplies
manufactured on a labor scale al
most double pre-war standards-pay
almost double the freight rate on
products going to market and sup
plies coming back
"While no definite plan of action
was asked as a means of immediate
relief, aside from the fact that a
portion of the delegation favored an
appropriation by Congress to pur-
chase surplus wheat supplies as a
means of stabilizing the market and
forcing prices up to a point more
nearly on level with other COM
modities.
while there is no assurance that
an emergency act will be passed with
the idea of establishing price on
wheat, Senator Cliff feels, however,
that action will be taken by the pres
ent Congress which will have a very
beneficial effect on conditions in agri-
cultural states.
''It is the opinion that two very
important points will be gained as
result of the delegations appear
ance before the Congressional COM
mittee:
"First-The extension of govern
ment credit direct to the farmer
at low rate of interest. ~
Second Improvement in the sys-
tenn of government grain grading,
thru which the price paid to the
producer. will be based upon the
actual milling value of the grain.
''It is hoped to accomplish the ex-
tension Of needed credit thru the
enlargement Of the Government Land
Bank idea, thru which arrangements
will be made for. the purchase of pa
per running from six months to three
years, and it is believed that these
loans can be made thru both the Land
Bank and Federal Reserve Rank sys-
tenn It is believed that thru the
adoption of this method interest
rates may be lowered.
''It is also planned to finance thru
the same medium the cooperative
marketing of farm products.
i "Placirg r1ore faith in permanent
relief thru these measures rather
than thru the proposed government
establishment of wheat prices, Sen
ator Cliff spent considerable Of his
time while in the National Capitol In
conference with the Government