The Washington herald., 1922-12-12


best known bnssnsss existing
today--and Il 10 . business much
IKE any other. Yet It has seen
grow up around Il youneer eiants
Of industry that could not pos
stbly get along without agricuI.
ture: giants that BY orgnuixa.
don and modern methods have
DESTROYED the fair relationship
between those who produce from
ths sol and those who produce
from the soil ana those who
produce from mine and factory.
AT MERCY or TRUSTS.
Other buslnesses have been cen.
trahzed and concentrated to such
an extent that the farmer finds
himself buying ut more or less
controlled prices from great tn
dustries, and selling In an unlim-
ttedly competitive manner In Q
market over. which he has no
control. He dnds ~ Q result
that he II not receiving . falr
share Of what he produces.
The statisticians Of the Depart
ment OF Agriculture and Labor
tell u that II prices Of agricul-
tural commodities were In Q Just
relation to those Of other CON-
moditiss In 1918 they are now
thirty-six points out Of adjust
ment. That 10 to say. the pur-
chasing power Of far mproduets-
their exchange value In other
commodtties-is only sixty.four
cents In the dollar compared with
what II was In 1913-and even
then 1t was not equitable.
An examination Of the Deaprt-
ment Of Agriculture figures will
reveal the deadly effects Of such
economic injustice. Millions OF
good farmers on good land and
with good crops are actually
running their business at q loss
OFFERS CREDIT PLAN.
This situation Is due partly to
the general upset Of the world
during the war and after. but II
has been aggravated by the
weakness Of rural financing and
marketing.
Sometime ago, al the invitation
Of the Kansas State Board OF Az.
riculture and the American Farm
Bureau Federation, I investigated
the financial and merchandising
aspects of farming. and came to
the foregoing conclusion.
Agriculture needs to be placed
UPON an equality with all the
other industries with which 1t
has to deal. And In order to ac-
complish this, 30 far as access to
credit Is concerned. l have three
recommendations to make, regard
less Of whether you market CO.
operatively or as individuals-al-
though l don't hesitate TO say
that / am unqualifiedly in favor
of cooperative marketing
NEW FINANCE SYSTEM.
A new finance system should
be set up to increase the volume
Of three classes Of rural credits
cooperation: W Credit for more
orderly marketing Of crops. o.
Credit for the purpose Of raising
and marketing cattle. ~ Credit
for productive purposes.
1t Is unnecessary to dwell upon
the necessity of credit for the
more orderly marketing of crops.
Many of you are sufferers from
the necessity of forcing upon the
market the products Of the soil
because Of inability to obtain
credit to carry those products un-
til such time as the markets and
transportation are no longer glut-
ted.
The basis of increased credits
for this particular purpose shoult
be the placing Of the products II
a modern warehouse or elevator
where a neutral authority wouls
register their grade and amount
and where a certificate would b
issued for the amount SO storet
or warehoused.
INDEPENDENT OF BANKS.
The farmer. once in possession
of this certificate. could take 1t Il
the present banking system ant
obtain credit upon 1t in much th'
same way az 10 now done; or to {
new finance corporation which
should be created for the purpos'
of lending money to the farmer
at the lowest obtainable rate o
interest, for not exceeding on
year, upon his note secured b!
this certificate.
The new institution. intended t.
be independent Of the presen
banking system, would place tn
farmers note, secured by hi
products, in its treasury. and is
sue its own obligations. az is nov
done by the Federal Land Bank
in their field The paper SO is
sued should be discountable in tn,
Federal Reserve System wheI
having not more than nin'
months to mature.
Paper issued by a FEDERAL.
regulated institution Of this knt
would have the widest kind Of ,
market and would place the farme
who deserves credit. in a positio,
where he can obtain 1t at tn
lowest rates Of interest.
EUROPEAN SYSTEMS.
The basis Of the issuance t,
cattle raisers would be, of course
the cattle, which would have t.
be properly inspected. Debentur
for this purpose should run for a
long as three years, but only note
or debentures having nine month
or less before maturity should b
discountable in the Federal Reserv
banks.
I'm the matter of credit for Pre-
40