Omaha daily bee., 1922-04-24
New Farm
Credit Plan
is Proposed
System Entirely Independen,
Of Federal Reserve or Land
Banks Appears Strong
Possibility.
To Replace War Finance
By ARTHUR SEARS HENNING.
Omaha Nee lsasSd Misr


Washington. April y. - President
lardings recommendation TO con-
grcss 10 act iavorably upon the bill
providing farmers with credit taeil-
iiies as favorable as those enjoyed
by commerce and industry may lead
10 the establishment OF rural credits
system entirely independent OF either
the federal reserve system or the fed
cral land banks.
a new chain OF banks which would
he linked with central corporation
At Washington. To take the place OF
the War Finance corporation. is pro-
posed, The system would be de-
signed 10 furnish credits OH agricul-
inral products and livestock over
periods ranging from six months to
three years. which are not provided
through the agencies already cstab-
lishcd by federal legislation.
Additional Credits Needed.
That additional rural credits iacil-
tiles are needed was urged in the
report OF the joint Commission OF
agricultural inquiry headed by Rep
resentative Anderson, Minnesota. The
bill introduced by Representative An
dcrson in the house and by Senator
Lenroot, Wisconsin. in the senate,
however. providing for credits OF this
nature through the federal land
banks, is meeting with criticism. OBJ
lection is made to confusing this new
type OF agricultural credit with the
long term loans on land which are
provided bly, the federal land banks.
A strong movement appears to be
developing for the establishment OF
an entirely independent system.
Schemes for the creation OF a new
system are contained in bill re-
Gently introduced in the senate by
Senator Simmons, North Carolina,
and also in another bill which has
just been perfected which was pre-
sented yesterday in the senate by
Senator Norbcck. South Dakota, and
will be introduced in the house by
Representative King. Illinois, to-
morrow.
NeW RAN ENDORSED.
Endorsement OF the establishment
OF new system has been given
tentatively by the farm finance COM
lnit>cc of the state bank division of
the American Bankers association. A
delegation from this committee, in
cluding John d. Phillips OF Green
valley. fii;. fotmcr president OF the
Illinois State Bankers association,
and H. A. Moehlempah Of Miwau-
kce, former member of 'the federal
reserve board and also former presi-
dent Of the Wisconsin State Bank
crs' association; George A. Holder
son OF Tarboro. N. c., and M. H.
Malott of Abilene. Kan, has been
in Washington recently in conference
with members OF the banking and
currency committees OF the senate
and houses
The Simmons bill creates what -
ctllcd the National Agricultural
Credits corporation with life of 50
years. This national agricultural
credits corporation would succeed
tliN NV0i OiPOi ottOh ou0 itS
capital stock OF $500.000,000 would
be provided by the retirement Of the
capital stock Of the War Finance
corporation. The new corporation
would take over the assets of the
War Finance corporation. N
Linked with the National Agri-
cultural Credits corporation would be
three classes OF member corpora
tions scattered throughout the coun-
try. Class A corporations would
consist of national banks. state banks
or trust companies. authorized to
make agricultural loans. Class B
corporations would be livestock or
other loan companies now or here
after organized under the laws of
any state and engaged principally i'll
the business OF making agricultural
loans. Class c. member corporations
would be the new agricultural cor
porations organized under the au-
thority Of the act.