Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-12-31
MELLON URGES RELIEF
FOR FARMERS ABOVE: ALL
Secretary of Treasury Comes
Out for Capper Cred
its Bill.
Objects TO LENnooT MEASURE
TELLS Scnntc banking Commission lie
Carors Othcr-DiHcrcncc OF Opin-
.1"n Exists Among Members OF
5'rcsiicnts Cabinet.
LNv AssoclatoA rrossl

tBv Associated Prcss.l
WASHINGTON, II. C.. bee. 40
Enactment Of the Capper rural
credits bill. together with legislation
extending the powers OF tho War
Finance Corporation for nine months
rather than the lcnroot bill. which
heretofore has borne the admintstra-
ton stamp. was urged by Secretary
Mellon today before the Senate
Banking Commission.
The Treasury Secretary appeared
with Secretaries Hoover and Wal
lace at the closing hearing Of the
committee on the Capper. Lcnroot
and other agricultural credit bills.
The committee spcu; three hours IN
hearing the three Cabinet members
behind closed doors and then ad-
;Qurncd until Tuesday when it VIII
Begin the drafting OF legislation.
Cabinet Members Differ in Views.
Secretary Mellon. In coming out
f9r the Cappcr bill. presented dir
ferinE views than those held By Sec
rotary Wallace, who assisted in the
framing Of tho Lonroot Bill. and by
secretary Hoover. VINO also indicated
"A preference for tho Lenroot meas
ure.
Secretary Hoover. the first OF the
three Cabinet members TO be heard.
was understood 10 have expressed n
preference for the LenrOo, bill, hut
to have indicated some hesitancy as
to an Endorsement OF the extension
proposed By that measure IN time for
Tediscount OF agricultural paper.
Mr. Hoover, IL was also SAID. on
posed use Of tho Federal Reserve
Board rs an agency in the extension
of farm credits. preterring utilization
Of the Farm Loan r:oarL which no
was said 10 feel should be made
tho Agricultural financial agency OF
inc government.
Camper Dil Provisions.
The Capper bill. which was drafted
With the assistance Of Director
Meyer, of the War Finance Corpora
tion. and presented with the indorsc-
rlcnt OF the American Nationn, Live
stock Association. would provide for
examination under the supervision of
the Comptroller OF the Currency of
private rural credit and rcdiscount
corporations with n minimum cant
talization o: s250.OGo. for extension
OF the period during which aCricul-
'ural paper shall be eligible for re-
GiScoun; from six TO nine months
ana for acceptance by Federal Re-
serve Banks of paper of co-opcra-
i've associations of aEricUlturalis.s
idr roGiscourt as agricultural paper.
secretary Mellon in his letter. and
also IN his testimony. presented a
number of objections to the Ander-
s"n-Lenroot bill, declaring that sit
would place the government 20 a
la!Se extent IN the commercial bank
'ils business would mako
heavy drafts upon the treasury for
INC capital OF the farm credits de-
paTtmenis and that wou!d mean
either moro government borrowing
or higher taxes on all tho pcopic. .
and would provide for issuance of
taH-cNcmpt collateral trust bonds In
raise additional funds. Amplifyinr
MS last objection. Mr.. Mellon said
II would come with particularly bad
Srace for the Federal rov-
eminent to authorize creation of =
IhrEc volume OF new tax-cxempt Sc
curitics" at the time Il was scckin.:
TO shu, off the flow Of such securities
through amendment OF the Federal
constitution.
Pointing to the disversity of opin-
ION upon the Anderson Lcnroot bill.
MY. Mellon. in his letter. added:
In view OF the substantial obiec-
TONS to the bill already pointed ont.
be!!eNe that the most helpful course
that can he pursued now Is to adopt
a substitute measure along the lnas
OF the Cappcr bill, with the suggest
co extension Of tho l!tc OF tho War
FINANCE Corporation. until March 81.
1929. This would adapt our prcscn,
banking system ny 10 the needs of
agriculture and inclaaG the. best fea-
lures of the vaI4oI- plans. upon
which there is virtual agreement.
For Wnr Finance Corporation.
II would admit 10 discount at the
Federal reserve banks agricultural
paper with maturity up 10 nine
months. secured by commodities in
process Of orderly marketing or by
livestock which IS being fatteucd for
market To this there can be- no sub
stantial objection. 1t is safe. ana the
testimony before your committee
shows that IL viii be helpful
rural credits program like that.
enhodied in substance in the Can.
per bill would draw capital and
credit from available sources for us,
where needed by agricultural and
livestock Industries, and would ac-
compllsh this DIN business basis
without depending on governmen,
money or tax exemptions Az the
same time IL would enlarge tho IA
clIities OF the Federal reserve svs-
tenn TO provide further for agricui
tura! discounts and ! hope so as TO
encourage larger membership among
eligible hanks in the agricultural dis.
tricts. and would extend up 10 s25,-
900 the limit on loans by Federal
land banks. Altogether. it presents
comprehensive plan of permanent
relief on practical lines
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