Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-05-13
Twelve Republicans and
Eleven Democrats Agree
on Bill for Standardizing
Federal Loan Machinery
BY DAVID LAWRENCE
Ueased Wire Service to The Journal)
(COpyright. 1927


ate after a period of comparative
quiet has come back to life.
The first meeting of the group
since the resignation of Senator
Kenyon has just been held under
the craftsmanship of Senator Capper,
OF Kansas Insisting that their pur-
poses were non-partisan and solely
to benefit the agricultural interests
Of the country, twelve Republican
and eleven Democrats attended the
meeting and endeavored to reach an
agreement on a bill which would re-
organize the farm credit machinery
of the nation.
The group decided upon the ap-
pointment of a committee of seven
to examine the half dozen bills now
pending in congress with a view to
working out a satisfactory compro-
mise. Practically every farm inter-
est was represented at the meeting.
There were representatives of the
National Grange, the Farmers Blu
reau and the Farmers National
council, conservatives and radicals
alike. Eugene Meyer, Jr., managing
director of the war finance corpora
/, ton, took a prominent part in the
discussion.
Significant Move
The move is fraught with great
| significance. Senator Capper, told
this correspondent today that a COM
mittee of the American Bankers as
seciation favored the plan of a new
credit system for the farmer ana
| ding was favorably disposed to favor
| it.
Briefly the aim of all the bills IS
to enable the farmer to market his
crops without Dependant upon the
middleman and without permitting
the spectators and other interven-
ing interests to take advantage OF
| the farmers immediate need for
credit to pay his ninety day obliga,
tons.
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 pres
ident, recently recommended the dis
continuance of the war finance cor
\ poration upon the substitution of a
plan that would take into consfdera-
ton the varying credit needs of the
farmer and stock man. Senator
Capper has introduced a bill along
the lines proposed by Mr.. Meyer.
| To Harmonic All Bills
But the effort of the farm bloc
will be to harmonic all the bills
such as those introduced by Mr.. Len:
root in the senate, and Mr.. Ander.
| son in the house Of representatives,
I and such proposals as have been
made by Senators Simmons, of North
| Carolina, and Norbeck, of North Da-
| d
reaching plan that will encompass
every phase of agriculture.
| The tendency is to use the exist
ing farm lank bank system and ex-
tend it's powers. AT present these
twelve regional banks make loans
on land only. but the proposed Leg
islation would enable them to issue
| loans on the basis of commodities,
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 of
| 100000, 900, though some estimates
run as high as 100000, 900, and then
| the government would float farm
| bonds as basis of credit, and thus
obtain from small investors through
| out the country the money where
with to finance the crops Of the ma
| ton. The farm loan bonds now on
sale are returning a good rate Of
! interest, and are selling remarkably
| well, so the agriculturists believe the
bonds to be floated later would be
| gobbled up as a splendid invest
ment.
The Present System
| Under the present system the
farmer horroWs on ninety-day
basis from the banks, and must dis
pose Of his crops quickly to get
money to pay his notes. He dumps
his wares on the market and thus
depreciates the prices. Meanwhile
the spectators and elevator owners
who take the farmers products, hold
the same for higher prices, and this
speculation makes the price to the
consumer higher. The farmer wants
that margin for himself, and believes
he should be given credit on a parity
with the speculator or elevator own
err who gets it from the city banks.
AS Senator Capper expressed it to-
day, the present banking system was
devised to furnish credit for the
manufacturer and merchant who has
quick turnover. For that purpose
ninety-day credits are sufficient, but
for the farmer and cattle-raiser a
longer period is necessary, for he
doesn't turn over his crops SO quick
ly, or at least would prefer to move
his products more in harmony with
the supply Of credit.
1--WE shall continue as before"
said Senator Capper today, Ito keep
1f CHI