The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1922-06-28
Federal loans To
Finance THE FARM

Obvisously the price of agricultural
products is the determining factor in
the average welfare of the farmers.
Prices are determined by supply and
demand and by cost of production.
Normal interest is a small element
in the cost of production. The big
items are labor, material, transpor-
tation and distribution. Bonds, mort
held up to the farmers as great OBJ
stacles in the way of agricultural
prosperity. Under these same cob
stacles" farmers obtain credit and
capital at very moderate rates.
1t must be admitted that farmers
~prospered between 1917 and 1919; but
it was war prosperity. Many thought
war prices would be permanent; and
INDUCED in unwise borrowing. The
worldwide collapse of 1920 caught
many farmers and stock raisers. Had
it not been for the banking and farm
loan system of the country, bank
ruptcy among farmers would have
been widespread. Within the last
ten months economic forces have
come into play and the price of cot
ton, of wheat and cattle has advan
eed. The farmers have seen thei
holdings increase in value many mil
lions.
American farmers have been tn
victims not of bankers and none,
lenders, not of the prevailing system
of interest, but of memorable econ
omic laws. They were saved fror
far greater distress by the very sys
TEN OF banking and leaning whic
many denounce. The War Financ
Corporation and the federal system {
credits saved many of the farmer
from certain disaster. With a reat
iustment of world economic cond
tions and a return to normal, ii
prices of farm products will advan'
steadily to a fair level, Then far
mortgages may be lifted.
To abolish the present mometa
system, discard banks and intere
and all forms of loans, would strl
a death blow to thrift and saving
Farmers would have no induceme
to a off their debts and save, a
become real capitalists. If the re
eral government should undertake
print enough paper money to 10
fine farmers, without interest, so tn
the four billions of dollars IN ia
mortgages could be lifted there's
the fiat money thus issued would W
nigh be worthless; and it might
ouire one hundred paper dollars
buv a load of bread, Or n tEcusa
dollars to purchase a shirt. FARM
would be ruined speedily, becal
nresent values would disappear.
There is NO short road to freed
from debt, for farmers or any
else. It is a long, hard journey;
1t is made easier and more cert
under a stake monetary syst
whereby capital and credit are cas-
obtained, and obligations settled "
a minimum expenditure of enel
and toll. An honest days work
settle more old debts under a S
tenn of sound, honest currency, Il
under a system of cheap and infla
currency. Farmers and wage earn
become capitalists and money lend
much more easily under a sound S
tenn of credit than under a plan
wildcat currency.
Agriculture is indeed the "ba'
bone of the country" and legislat
has promoted and assisted it, so
as legislation can. Farmers are
empt from the antitrust laws,
permitted to issue tax-exempt sec1
flies, can cooperate, and can borr
money at a low rate of interest. Sc
railroad freight rates viii be ms
lower and marketing made east
The farmers themselves must and Y
do the rest.