New-York tribune., 1922-11-16
Meyer Urges
Banks to Aid
Farm Credits
War Finance Director Com
fers With Harding; Wants
Laws Modified to Help
cooperative Marketing
President Drafts Message
Is Expected to Stress Agri-
cultural Needs at Regular
Session Of G. o ngres S

WASHINGTON. Nov. Is. - Eugene
Meyer jr., managing director of the
War Finance Corporation, conferred
with President Harding to-day and was
understood to have discussed the farm
credit situation. 1t is believed that in
his message to the regular session of
Congress in December Mr.. Harding
may discuss the possibility of need for
Legislation to provide permanent finan-
cing machinery for the agricultural
and livestock industries of the country.
According to some of the Presidents s
ADVISORS additional cogs in the Federal
farm financing machine are needed to
place agricultural credits on a firm
BASIS particularly with respect to CO.
operative marketing associations. and
furnish permanency of operation de-
MED under the limited authority ex-
tended to the War Finance Corporation
by Congress.
MI. Meyer takes the position that
the war finance corporation is es-
sentially temporary agency designed
TO meet an emergency, but unsuitcd to
the permanent banking structure of
the country. In his view the solution
OF the farm credits problem lies in re-
lance upon local capital and manage
ment to the fullest extent for the per-
manent financing of the agricultural
and livestock industries, looking to the
government only to authorize the
proper machinery and to provide the
necessary supervision and regulation.
Would Modify Laws
Proposed machinery advocated by
Mr.. Meyer would take care of the
financing of cooperative marketing as
sociations through existing financial
machinery by modifying the laws and
regulations governing the eligibility
requirements of the Federal Reserve
System. He would finance the live
stock industry by amending the ma
tional banking act so as to authorize
the creation of Federal chartered loan
companies. operating with private
capital under the supervision of the
Comptroller of the Currency or the
Federal Reserve System.
made in the eligibility rules of the
Federai Reserve System, Mr.. Meyer
maintains there is every reason to ex-
pect that the banks will do their part
in the financing of cooperative market
ing associations. The experience of
the war finance corporation, he said,
demonstrated that where the redis-
count facilities exist necessary funds
for credit are provided largely through
private banking channels in the va
rious localities.
Starts Work on Message
President Harding after conference
| to-day with Chairman Lasker of the
| Shipping Board, began work on his
message to the extra session of Con.
gress.
The message is expected to be de
voted almost entirely to discussion
| of the pending merchant marine bill
as it has been asserted at the White
House that the Presidents desire tt
have action on this measure expedited
was the main reason for calling Con
gress in session two weeks in advance
of the regular meeting.
Other legislation, such as the desira.
bility of amendments to the transporta.
tion act, may be touched upon by the
President, but it is generally believed
by Congressional leaders with whom he
has talked recently that presentation
of detailed views on other subjects
than the merchant marine bill will
await the annual message to be for
warded upon the converting of Congress
in regular session, December 4.