The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-12-11
Surplus Determines Price OF
Produce, Says Baruch.
Lack of Market Abroad Mean:
Lower Prices at Home.
URGES NEW FINANCE SYSTEM
Would Issue Credit to Farmers
on Warehouse Paper.
Marketing Is Main Theme OF
Farm Bureau Convention.

Chicago. Dec. 11.-Shrinkase o.
foreign markets affects the farmers
credit more than anything else in the
world and there is nothing of greater
moment than the creation of interna-
tiona! relations that will be precedent
to the re-establishment of those mar
kets. declared 3. NJ. Baruch, former
chairman of the war industries board
in cn address today before the Ameri-
can farm bureau federation
Surplus finally determines the
price of products" he said. You
farmers are the real exporters of the
country. 1t is YOU VINO are deeply in
terested in foreign affairs and If you
cannot sell your surplus abroad, you
must take a lower price for that por-
ton of the produce consumed mere
The re-esta biishment of worlds for
eign markets can only come with the
re-esta bIishment of the worlds eco
nomic peace and balance
New Credits Scheme
Agriculture needs the same access
to commensurate financing as modern
business. in order to be placed upon
an equality with other industries with
which il has to deal. new finance
system TO increase the volume of three
classes OF rural credits should be set
up. credit for more orderly marketing
of crops. for the purpose of raising
and marketing cattle and Tor pro-
ductivc purposes
.aThe basis for increased marketing
credits should be the placing of the
products in a warehouse Where a
neutral authority would register their
grade and amount and issue the
farmer a certificate. The certificate
could be taken to bank and credlt
obtained upon II or TO a new Ilhahcs
CORPORATION which should be created
for the purpose Of lending money 10
he farmer at the lowest possible rate
Of interest for not exec eding one year,
upon his note secured by the certil-
.aThe new institution. independent
of the present banking system would
rlace the farmers note in its treasury
and issue its own obligations. which
would lie discountable in the federal
reserve system when having not more
than nine months TO maturity.
Aid for Cattle Raisers.
The basis of the issuance of credit
to cattle raisers would be cattle prop
erly inspected Debenture for this
purpose should run as long as three
wears but only notes having a nine
months or less maturity should be dis
couutable in the federal reserve banks
I'm the matter of credit for produc-
ton moral risk. the character and in
dividuaIity of the farmer himself must
be considered Rural banks and mer-
chants now furnish this kind of credit z
but the farmer must not be restricted
solely to local markets financial as
soCiations or corporations could De I
formed in localities to provide neces-
sary guarantees for credit
These would be analogous to the T.
farm loan association of the federal '
land banks but controlled by farmers
and others by whom capital would be f
subscribed. The initial capital of the /.
new system could he obtained out of I
liquidation OF the war finance corpor- 7
alton There has now been introduced +
into congress a bill covering most of F.
the things 1 have suggested
Mr.. Baruch commended the cooper .
ative system OF marketing now being
practiced.
Marketing Is Theme.
Mark etfng will be the dominant .
theme of the convention. the fourth .
annual meeting of the Farm Bureau I
fedora ton which continues four days. |
The American Farm Bureau fedora I
ton is the largest farm organization I
in the world. its membership approxi- /
mating 1,255,OOO.