The Washington times., 1922-01-23

Yet the farmer IL compelled. II he
borrows his working capital, to
borrow for short periods. to renew
his paper several rimes before his
turnover IL possible. and to take the
chance that II he II called upon I'M
timely to pay off his notes he may
be compelled to sacrifice growing
crops or unfinished live stock. OBJ
viously. the farmer needs to have
provisions. adapted to his require
ments, for extension of credit to
produce his working capital.
Need Seems Apparent.
Under the necessities Of war
time. consolidation and centraliza-
ton of credit resources and finan-
cial capabilities went far to sus-
tain the struggle. Essential indus
tries were extended the help and
support Of society because society
recognized its dependence on them.
Much that was economically UNI
sound and unfair was perpetrated
under over of this effort to uphold
the lesson was useful. and justifies
inquiry as to whether, properly
adapted to peace conditions, the
methods Of larger integration and
wider cooperation might not well
be projected into times Of peace.
The need of better financial ia
cilities for the farmer must be ap-
parent on the most casual con-
stderation Of the profound diver
gence between methods Of financing
agriculture and other industries.
The farmer who owns his farm In
capitalist, executive. and laborer
all In enc. As capitalist, he earns
the smaller return on his invest
ment. As executive, he IL little
paid; snd as laborer he n greatly
undtrpaid in comparison to labor
In other occupations
There IL much misconception re-
garding the financial status Of
agriculture. II the mortgage In
debtedness Of farms shows, over q
given period, q marked tendency
to increase. the fact becomes occa-
sion for concern.
II during the same period the
railroads. or the great industries
controlled by corporations, find
themselves able to increase their
mortgage Indebtedness by dint of
bond issues, the fact Ia heralded
as evidence OF better business con.
ditions and Of capitals increased
Willingness TO engage In these in
dustries and thus insure larger
Of labor.
Some Misconception.
Both the mechanism Of finance
and the preconceptions Of the
community are united In creating
the impression that easy access to
L.
the farmer, and an evidence Of his
decay In prosperity; while precisely
the same circumstances are CON.
strued, in other industries, as EVIL
dence OF prosperity and Of desira-
bic business expansion.
In the matter Of what may be
called fixed investment capital, the
disadvantage Of the farmer so
strongly impressed public opinion
that a few years ago the Federal
Farm Loan Board was established
to afford better supplies of capital
for plant investment and to insure
moderat interest rates. But while
Enthusiastically farm finance has
benefited, the board has thus far
not extended it's operations to the
provision of working capital for the
farmer as distinguished from per-
manent investment in the plant.
There should be developed q
thorough code Of law and business
procedure, with the proper machin-
cry Of finance, through some
agency, to insure that turnover
capital shall be as generously sup
pied to the farmer and o mas rea-
sonable terms as to other industries.
An industry, more vital than any
other. In which near half the
nations wealth is invested can be
be relied upon for good security and
certain returns.
Indebtedness Is Small.
In the aggregate, the capital in
debtness Of the country's agricui.
tural plant is small. not large. Com
pared with other industries. the
wonder Is that agriculture, thus
deprived OF easy access to both
Investment and accommodation capt.
tai, has prospered even 30 well.
The lines on which financial sup
port OF agriculture may be organized
are suggested in the plan of the
Federal Farm Loan Board, and In
those rural finance societies which
have been 30 effective in some
European countries. The co-opera-
tive loaning associations of Europe
have been effective incentives to
united action by farmers. and have
led them directly into cooperation in
both production and marketing,
which have contributed greatly to
the Sterilization and prosperity of
agriculture.
Whether we examine the co-opera-
tive societies OF Russia, now
recognized as the most potent sup
port In that disturbed country for
orderly society, or whether we turn
to the great and illuminated CO.
operative associations which have
strengthened the California agrtcul-
tural industries; whether we
examine the cooperative societies
Of Ireland and Denmark or the like
organizations which handle the
potatoes of Maine, or the canta.
loupes of Colorado: whether we con-
slider these organizations as means