The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-02-08
CAPITALS INTEREST IN THE
FARMER

much concern regarding the condi-
ton of the farmers. as they are show
ing today. They appear to be hon.
estly anxious to help, This is not
remarkable. however, in view of the
fact that their prosperity like that of
every other business interest, depends
upon the welfare of the agricultural
classes.
But between the financiers and the
agricultural bloc in congress, there
appears to be wide divergence OF
opinion regarding what should De
done. The bloc's method has been
to seek a change in the system of
banking control; it has been, further.
to seek means for the creation, in
the interest strictly of the farmer of
more credit and more currency. and
for the renewal on a large scale of
initiation. The method of the others
has been to plan to strengthen and
supplement the existing commercial
banking system, to equalise the prices
of what the farmer has to buy and
what he has to sell, to develop better
marketing methods and transporta-
ton facilities, and to reopen the chan
nels to the outside world for Amer
ica's surplus goods.
Causes of the present agricultural
difficulties are enumerated by one
banking concern as follows:
"a Farmers who bought land at a
valuation based on prices two and
three times what the market rate now
affords cannot make ends meet; (2)
prices of farm products. have fallen
much farther than the manufactured
articles which the farmer must buy;
t3l high Gusts of transportation have
forbidden the shipping Of much of the
farm output; ca the disordered mar
kets of international exchange have
blocked n profitable foreign outlet.
1t is pointed out in a bulletin is
sued by the Mechanics & Metals Ma
tional bank that it is against a back
ground like this, calling for wisdom
in order that correct solutions might
be provided, that the course OF the
agricultural bloc in congress has thus
far been to legislate for the appoint
ment of a farmer on the federal re-
serve board. and to seek means for
the release to agriculture of an in
creased amount of banking credit.
IN analysing these measures"
says the bulletin, sit ought to be OBJ
vious that the direct and special bene-
fit to the farmer of having one of his
particular lrind occupy a place on the
federal reserve board would be re-
mote one" The fundamental re-
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service, is that it shall serve only in a
judicial and nonpartisan capacity,
serving the welfare of the country as
a whole and not that of a single group
or class. The farmer has not had a
special advocate on the board in the
past, says the bank, yet he has bene-
fitted from the federal reserve system
as much as any other, and fully as
far as that system under existing laws
could benefit him.
According to a report made to con-
gress on January 20 by a joint COM
mission which investigated the coun-
try's agricultural affairs, the bank
loans to farmers during the late Pc
Rod of expansion were relatively
greater than to other classes, while
during the period of acute deflation
neither the federal board nor the re-
serve banks took any action which
caused a greater curtailment of agri-
cultural lines than others.
1t seems to be generally conceded
that the farmer needs to have provi-
sions adapted to his requirements, 30
that long time credit will supply him
with working funds. But as regards
| the immediate release OF a large sum
Of banking credit, the bank bulletin
quoted holds that it is obvious that
low money rates and over-abundant
bank loans just now would help the
farmer only as they inaugurated a Pc
riod of secondary initiation. This. to
be sure, would raise the prices of the
goods he has to sell, which is what he
desires. But it would raise the prices
as well for the goods he has to buy.
which is the last thing he desires.
| Moreover. what requires to be empha-
I sized today is the condition of current
farm indebtedness as compared with
the farmers ability to meet that in
debtedness.
The commission previously referred
to. on the strength of its investigation
into agricultural conditions, pointed
out to congress in its report of Janu-
airy 20 that farm indebtedness in the
United States has doubled in the last
ten years, while the late drop in prices
has had the effect Of again doubling
/ this Indebtedness. So the question
which logically presents itself is
whether the farmers pressing need at
the moment is after all for freer
credit.
!
In Washington it seems to be re-
( r-d al