The Bingham County news. [volume] (Blackfoot, Idaho) 1918-1930, 1922-07-07

sold within a short period, but are
consumed throughout the year. Be-
fore the war, the financing of the
period between pro-
duction and consumption was carried
by middlemen. and in the case of ex-
ports, by European capital. Since
the war, due to the violent fiuctuation
in foreign exchange. foreign mer-
chants have made their purchases
of our raw materials on hand to-
mouth basis, as they naturally did
not want to gamble in foreign ex-
change in addition to the ordinary
risks of business. For example, be-
fore the war, 80 per cent of our an
nual exports Of cotton were made in
the six months after it was harvested;
since the war, only ABOUT so per cent
has been going forward in the same
period In domestic trade, the buyers
strike and the general business de-
preston have also brought about a
hand to mouth buying, with mer-
chants carrying only small stocks of
goods. The result has been that the
burden of carrying has been forced
back on the farmer who was the least
able to bear it, particularly as his
banks were unable to give him the
necessary assistance, due to the
world wide financial conditions. AS
an emergency measure, the War
Finance Corporation was able to fur
nish the funds which relieved this
critical condition, but the Corporation
is temporary emergency institution.
Our permanent financing machinery
must be adjusted to sound processes
of production and distribution in ag-
riculture, az we'll as in other lines
of industry.
The individual famer acting alone
cannot solve this problem of orderly
marketing. He must either leave
this to some other agency, or must
pool his products with his fellow
farmer through some such organiza-
ton as a cooperative marketing as
ISOLATION. These associations, where
they have been efficiently managed
and have adhered to the principal of
OIuclly hCClA6 oIOA6 oOuAu AlACS,
have been successful in promoting
the interests of both producer and
consumer. We have approved ad-
vances aggregating over fifty-nine
million dollars to various cooperative
marketing associations, and through
them were able to stop distress liqi-
dalton more quickly and more eff
GENTLY than would have been pos
sible in any other way. There will,
in my opinion, be great development
in these cooperative marketing as
sociations in the future.
Another pressing emergency prob
lem the Corporation had to meet was
the financing of the livestock indus
try. At the time of the passage of the
Agricultural Credits Act, six months
loans were falling due, and the banks
and cattle loan Companies being un-
financial situation, were pressing
for liquidation. Stockmen were forced
to sacrifice their immature stock
and breeding herds, and the whole
industry on which the meat supply
OF the future depends was threat
ened with ruin. At the suggestion OF
amounts of new capital were put in
to the business in the livestock states,
in an aggregate amount greater than
the total capital of all the old cattle
loan companies combined, and by
loaning over 70 million dollars to
both new and old companies, we were
able to stop the sacrifice of breeders
and immature stock, stabilize the
market, and, best of ALL give hope
and confidence to the experienced
stockmen, thus encouraging them to
stay in this important industry.
The experience of the past year
has shown that the financing Of our
livestock industry needs to be put
on business basis. A six months
loan, without assurance of renewal,
to livestock breeder requires three
years to make turnover of his pro-
duct, is unsafe for the grower and
leaves this basic industry on an un-
sound basis. Our financial machin-
cry needs to be adjusted to the sound
business needs of the livestock in
dustry, and where adequate machin-
cry is lacking it should be set up
Various bills have been introduced
in Congress affecting the financing
of agriculture. Where a need of a
change has shown to exist, a remedy
along sound lines must be provided.
if unsound financial cure-alls are to
/ hn ouniaoA &c ,0t
get the lessons Of an emergency I'M
til another time of emergency arises.
The farmer and stockmen who have
suffered will demand that legisla-
ton be passed to protect them in
future crises, and fl legislation along
sound lines is not given them, un-
sound schemes of all kinds will be
advocated. Bankers and financiers
generally should devote careful