The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-05-12
By DAVID LAWRENCE

Especial Despatch to The Reformer.)
Copyright 1922
WASHINGTON, May l2-The farm
bloc in the United States senate after
period Of comparative quiet has come to
life. The first meeting of the group
since the resignation of Senator Ken
yon has Just been held under the chair
manship of Senator Capper of Kansas
Insisting that their purposes were nom
partisan and selely to benefit the agri-
cultural interest of the country. u Re
publicans and IL Democrats attended
the meeting and endeavored to reach an
agreement ON a bin which would reor
ganize the farm credit machinery OF
the nation. .
The group decided upon the appoint
ment of committee of seven to ex-
anime the half dozen bills now pending
in the congress with view to working
out satisfactory compromise Prac-
tically every farm interest was repre-
scented at the meeting. There were rep
resentatlYes of the National Grange, the
farmers bureau, the farmers national
council, conservatives and radicals alike.
Eugene Never, IL, managing director of
the War Finance corporation took n
prominent part in the discussion
The move Is fraught with significance.
Senator Capper told this correspondent
today that a committee of the American
bankers association favored the plan OF
new credit system for the farmer and
stock man and that President Harding
was favorably disposed to the idea.
Want Six Months Credit
Briefly the aim of all the bills is to
enable the farmer to market his crops
without depending on the middle man
and without permitting the Spectators
and other intervening interests to take
advantage of the farmers immediate
need for credit to pay his obligations.
The desire of the farm bloc is the estab-
| liShment Of a credit system with six
months or more as the length of their
credit obligations. The War Finance
corporation has been performing in the
last two years many of the functions
which it would be expected that the
/ new farm credit system would embrace.
Mr.. Meyer in his report to the
| President recently recommended the
discOntinuance of the War Finance
corporation upon the substitution of a
plan that would take into consideration
the varying credit needs of the farmer
| and stockmen. Senator Capper has in
ttredaced a. bill afohg'1 the lines proposed
| by Mr.! Meyers. a..s
But the effort of the farm bloc was to
| harmonic all the bills such as those
| introduced bv Senator Lenroot in the
/ senate and Mr. Anderson in the house
and such proposals as have been made
] by Senators Simmons of North Carolina
/ and Norbeck of North Dakota and blend
1 them into a far reaching plan that Will
4 encompass every phase of agriculture
! Government to Furnish Capital.
| The tendency IS to use the existing
I farm land bank system and extend it's
/. powersl AT present these II regional
I I-- ma on md nix bl1T no
/ proposed legislation would enable them
/ to issue loans on the basis of commodi-
/ ties, such as grain, cotton, and live stock
| and other products OF the ranch and
] farm. The government would start the
/ ball rolling with an advance III $780,
4 100000 though some estimates run as
! high as S500,000,000 and then the govern
/ ment would float farm bonds as a basis
of credit and thus obtain from small in
vestors throughout the country the
/ money wherewith to finance the crops
/ of the nation. The farm loan bonds
4 now on sale are returning a GOOD rate
/ of interest and are selling remarkably
! well so agriculturalists believe the, bonds
to be foated later would be gobbled mp
as a splendid investmeuC.
| Under the present system the farmer
| Eorrows on a 90-day basis from banks
| and must dispose of his crops quickly to
! get money to nay his notes. He dumps
| his wares on-the market and thus depTe-
| ciates the price. Meanwhile the specu-
lators and elevator owners who take the
1 farmers products hold the same for
i higher prices and this REGULATION makes
! the price to the consumer higher. The
J farmer wants that margin for himself
! and believes he should be given credit
ON parity with the sneculator or ele-
vator owner who gets it from the city
banks.
FaSOrs Manufacturer and Merchant.
As Senator Capper expressed today,
! the present banking system was devised
| to furnish credit for the manufactures
and merchant who has a quick turnover
For that purpose 90-day credits are suf-
| fieient but for the farmer and cattle
raiser a longer period is necessary for he
| dOesn t turn over his crops so quickly
or at least would prefer to move his
| products more in harmony with the sup
| ply of credit
we shall continue as before, = said
! Senator Capper today. ''to keep out of
/ politics. We shall advocate measures
| which are for the benefit of agriculture
and thus the whole country.