Evening star., 1922-11-26
BY WILL p. KENNEDY.
placed second : in importance
only to a constructive shipping

III RESIDENT HARDING has
- placed second in importance
only to a constructive shipping
program the need for farm
credits legislation. He told Con-
gress that he will Invite their atten-
ton" particularly to this subject in
the coming short session which opens
only subject other than ship subsidy
which the President discussed in his
address to Congress. He said:
AT the present moment the Ameri-
can farmer Is the chief sufferer from
the cruel readjustments which follow
wars infiations, and befitting gov
ernment aid to our farmers is highly
essential in our national welfare. No
people may safely boast good for
tune which the farmer does not
share.
ALREADY this Congress and the ad-
ministrative branch of the govern
ment have given willing ear to the
agricultural plea for postwar relief.
and much has been done which has
|
enough. Our credit system under
government provision and control
must be promptly and safely broad
ened to relieve our agricultural dis
tress."
! Not Agreed on Program.
President Harding is now consider
ing the recommendations he will
make to Congress. He is being ad-
Nsed not to be too definite and spe-
cific, because there is a strong diff
ference OF opinion, because whatever
he may recommend will be vigorous
ly debated. and he has nothing to
gain by coming out fiat-footed for
any particular scheme.
The nub Of the whole proposition
what the farmer most needs-is in
termediate loans, as distinguished
from short-time loans and from long
time loans. and these intermediate
loans must be at low rate of inter-
est.
The trouble with agencies-such.
even, as tho War Finance Corpora
tion. created to meet an emergency
> is that by the very necessity of the
case a higher rate of interest is
charged than the farmer is able to
fpay.
> There is no denial in Congress that
this is what the farmer needs, but
the entire wrangle comes over the
machinery by which it is to be given.
] Different and divergent views
among those who stand forth as
friends OF the farmers" and as
spokesmen for the agricultural in
terests are what is really blocking
the passage Of this needed legisla-
tion, the Presidents advisers are
pointing out.
Views OF Different Groups.
, One group Is urging that the pro-
, posed relief be covered into the fed
, eral reserve system. Eugene Meyer.
jr.. Of the War Finance Corporation,
, for example, is impressed with the
J need for financing cattle raisers and
for providing loans on farm COM
, modities susceptible of warehousing,
, but he does not go far enough on
the matter of immediate credits.
There is the group that thinks the
, federal reserve system offers suf-
fcient assistance, with some slight
modification Of the law.
? Then there is a second group that
. would set up an entirely new agency.
II A third group wants to put the ad
, ministration of the relief through
the farm land banks. which institu-
, tions administer mortgage credit.
To get effective legislation-and
prompt relief for the farmer-those
, friends Of the farmers must get
together. The President is ready to
emphasize the need.
Urged by President's Advisers.
Here is what the Presidents ad-
/ visers are agreed ought to be done:
: First - Increase the maximum
amount that the federal land banks
: may loan, which is $4,000 now and
should be increased to $4,000.
Second-Make such changes in the
federal reserve law as may be neces-
3 house certificates eligible for redis-
; count up to a period of six months,
/, or. in some cases, up to nine months.
t Third-Devise some plan by which
t short-term bonds can be issued based
r on loans for production and improve
/ ment purposes, running from one to
8 three years, and bearing not more
3 than the going commercial rate of in
, terest.
Senator Norris has already intro
= duced a farm credits bill in the SEN
3 ate, and the Senate agricultural bloc
! is to meet this week to discuss the
s subject.
4 Representative Sydney Anderson OF
Minnesota, chairman of the joint con-
: gressional committee on agricultural
e inquiry and leader of the agricul-
3 tural forces In the House. is now con-
I siderins the draft of a bill which car
] ries all the most desirable features OF
{ all the bills that have thus far been
c introduced.
Wallace Expects Favorable Action.
Secretary Wallace in discussing the
question of farm credits says: "A
number of bills were before Congress
at the time Of adjournment. There is
every reason to believe that the de-
sirable features Of all Of these bills
) will be brought together into one bill
, and that 1t will be acted upon favor
3 ably this winter. Delay in enacting
this legislation was not due to any
, unwillingness on the part Of Con-
l