The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1922-12-31
MELLON APPROVES
CAPPER PLAN FOR
AIDING FARME RS
Objects to Placing Govern
ment in Banking Business
Upon Large Scale Under
Rival Bill

WASHINGTON. Dec. So.--4The in
dorscment and support of the treas
ury department was given today to
the Capper agricultural credits bill as
against its principal rival, the An
derson Lenroot credits measure
which recently was introduced In
Congress with the backing OF Sec
rotary of Agriculture Wallace and
other government officials.
Secretary Mellon. in testimony pre-
scented at closing hearings today OF
the Senate banking committee on
farm credits legislation and in a
letter cent to Senator Mclean of
Connecticut the committee chairman.
came out in support OF the Capper
bill with minor notifications and
with an amendment to extend for
nine months after June 80, the farm
loan powers of the war finance cor
poration. I'd
Support was given the Anderson
Lenroot bill by Secretaries Wallace
and Hoover. also appearing before
the committee behind closed doors.
Secretary Wallace was understood to
have urged the committee to report
the Anderson Lenroot bill on the
ground that 1t was more nearly ade-
quate to the needs OF the farmer
than the Capper bill. Mr.. Hoover APP
peared to favor the Anderson Len
root measure. which would set up
farm credits departments in the ex-
listing federal land banks with an au-
thcrized government furnished capt.
talization of s6o.o00.0oo for the IL
banks.
Harmonixe Opisfons
With the views of three cabinet
members before It, the committee
prepared to draft legislation which
will harmonic the conflicting opin-
ions held by It's members and by
members Of Congress generally as tc
the form of aid to be extended farm
ers and livestock growers. The COM
mfttee will meet Tuesday to begin
its task and Chairman Mclean hopes
TO have bill ready for the Senate
next week
The Capper bill would provide for
organization under supervision of the
comptroller of the currency of pri-
vate rural credit and rediscount cor
porations with minimum capitali-
cation OF $250o0o, Nor extension OF
the period during which agricultural
paper shall be eligible for re- Discount
from six months to nine months,
and for acceptance by federal re-
serve banks of paper OF cooperative
associations of agriculturalists for
rediscount as agricultural paper.
Mellon objects
Secretary Mellon presen a num-
Der Of objections to the ANDERSON
Lenroot bill. declaring tina ut would
place the government to large ex-
[ tent in the commercial tanxing BUSH
ness, would have heavy drafts upon
the treasury for the capital of the
farm credits departments, and that
would mean either more government
borrowing or higher taves on all
the people, and would provide for is.
suance OF tax-exempt collateral tru st
| bonds to raise additional necessary
funds. Amplifying his last objectit n.
Mr.. Mellon said, sit would Tome with
| particularly bad grace for the fed
eral government TO authorize crea-
| ton of large volume of new tax
| exempt securities" at the time 1t
was seeking to shut off securities
through amendment OF the federal
constitution.
| Pointing to the diversity OF opinion
upon the Anderson-Lenrott bill, Mr..
Mellon in his letter added:
Tn view of the substantial objec-
tions to tho bill already pointed out
I believe that the most helpful course
that can be pursued now is to adopt
substitute measure along the lines
| Of the Capper i'll. with the suggest
Continued on Page Two)