Evening star., 1922-12-24
FARM BLOC MAY SPLIT
OVER CREDIT MEASURE
More Radical Elements Are Not Satisfied
With Provisions of the Lenroot-
Anderson Bill.

!thc right OF way in the Senate. The
banking and currency committee ex-
poets to report out a farm credit bill
within a week or ten days.
| Norris Bill Too Radical.
Already the Senate agriculture
committee has reported to the Senate
the bill offered by Senator Norris to
create a government $100.000.000 cor
| poration to deal in farm products
to buy and sell. and in a measure to
act as gigantic middleman between
the farmer and the consumer. This
is radical move. however. that will
| not receive the support OF ma
Jority OF the Senate. In fact. al
though Senator Norris has a motion
pending to take up his bill and dis
place the shipping bill, it will not. in
all probability. carry when it is al
| lowed to come to vote. and at
present is being used merely as
weapon 10 continue the flibuster
against the shipping bill
Just what form the proposed farm
credits bill will take is still a matter
I OF conjecture. A considerable num-
ber of farm credits bills have been
introduced in both the Senate and
the House. The bill introduced in the
Senate by Senator Lenroot of Wis
consin. republican. and Representa-
tive Anderson Of Minnesota in the
House. regarded as the administra-
tion bill, is the product Of the joint
congressional committee which for
many months conducted an inquiry
into agricultural conditions. and Of
which Senator Lenroot headed the
Senate membership and Mr. Ander-
son the House.
Other Credit Bills Pending.
In addition to this bill, there are
before the Senate banking and cur
rency committee the farm credit bills
introduced by Senator Norbeck of
South Dakota. republican; Senator
Capper Of Kansas. republican. and
Senator Simmons of North Carolina.
democrat. The House banking and
currency committee. which has just ,
begun hearings on the farm credit
legislation. has before it. in addition
to the Anderson bill. bills introduced
by Representative McFadden Of
Pennsylvania. chairman OF the COM |
mittee. and Representative McSwain !
of South Carolina, democrat. There J
is no lack. therefore. of bills for the |
consideration Of the respective COM
mittees.
1t is no secret that the leaders Of
the farm bloc expected to have the !,
bloc indorse the Lenroot-Anderson |
bill with a whoop at the beginning
of the presel session. But Senator
Simmons. Senator Norbeck, and some
others threw a monkey wrench into
this plan. They insisted that tho
bill was entirely
INADEQUATE. that while on the surface
It gave the farmer credit facilities
that he needed, 1t really would fall
far short of what was demanded.
Provisions Of the Bill.
Tho J,enroot- Anderson bill amends
,be federal farm loan act OF July II,
1916. by adding a new title to that act,
additional powers to the 1eo-
eral land banks. Of which there are
twelve, located in as many districts.
FINDER these additional powers the fed
eral land banks, under conditions I'M
posed by the Federal Farm Loan Board
would discount for or purchase from
anv national or state bank, trust COM
nany. rural credit corporation, tncor-
norated i've stock loan or farm credit
company, savings Institution. co-opera-
, ,rricultural producers organized under
the laws of any state or for any other
federal land bank, with its Endorsement,
any note, draft, bill of exchange. de-
benture or other obligation the proceeds
~ which have been advanced or used
in the first instance for an agricultural
purpose or for the raising. breeding or
Of live stock. They would also
he empowered to buy or sell debentures
Issued BY any other federal land banks,
and to make loans or advances direct
10 any cooperative association organ
lied under the laws OF any state and
composed Of persons engaged in pro-
1ucing and marketing staple agricul-
tural products or live stock, II the notes
Or obligations representing such loans
we're secured by warehouse receipts,
Or shipping documents covering such
products or by mortgages on live stock
Capital Of sso.eoo,ooo. Il
Each federal land bank is to estab-
ish a separate department to be known
II the Farm credits department., with
:apital Of S5.o0o.0oo, to be subscribed
by the United States. This would give
The twelve federal land banks = COM
pined capitaI of tsso.ooo.oeo for their i
farm credits departments. Il
The federal land banks are authorized
by tho bill to issue and to sell bonds
secured by cash or notes or other such
obligations discounted or purchased or
loans made in accordance
With the provisions Of the bill already
.ecitsd, but not in excess Of ten times
he amount Of the capital stock. In
,thsr words, If the banks were able to |
,ell bonds to the fullest extent, they /,
Rould have out 3soo,ooo.oo0. which
would represent the fullest extent Of
heir power to aid the farmers!
Tho Simmons and Norbeek bills have
he same basic principle. They pro-
Jose that the assets of the War Finance !
be Transferred to 4 central ,
agricultural credits corporation. In the I
ase Of the Simmons bill this would be :
ntirely separate and distinct from the ,
ederal farm loan system and the federal q
escrve systen,. The Simmons bill. pro- I
oses that the capital stock Of this cor
oration shall be s5oo.ooo. 900, to be =
aid by the United States. This new, I