The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-01-25
Farm Financing
at Conference
Secretary Wallace Will Bring
Up Charges

! lay before lNc- 0dllOtlHt agricultural
conference next week charges that
certain companies loaning money
on farm mortgages were taking
advantage Of the present crisis to
| charge "eXtortionate" interest Rates.
At the same time the agricultural
department made public inforna-
ton it had gathered for possible
use Of the conference. showing that
the banks Of the United States had
outstanding approximately $3.S69,-
S91,415 personal and collateral
loans to farmers and si.447.4S2.-
92G in farm mortgage loans at the
end Of 1920.
'In all lines Of business. the
secretary declared in statement,
I'VE find predator, individuals who
seek opportunities to take advan-
tagc of the misfortune Of others.
We expect that from men Of j GER
tain type, but it is real regret to
note that the same sort Of thing is
] now being done by some insurance
companies and farm mortgage loan
companies Of whom we have a
right to expect higher code Of
ethics.
These charges, he added. did not
'apply. to. all companies making
loans to farmers for some. he said,
were doing the right thing and
helping the farmers all they could
in the present situation. Others.
however, Mr.. Wallace asserted
cinphatically, "are taking advan-
tage of the farmers distress ito
heartlesSly cxtort a rate OF in
tcrest and terms Of loan which can
not be justified.
Charles S. Barrett, president OF
! the National Board of Farm Or
ganizations and president OF the
National Farmers union, also is
sued u statement prepared for the
conference delegates in which he
'deciared that the vc'amcnt had
..ditched" the farmers because
! through the federal reserve board
other agencies it allowed a ruineus
artifica! dcflation to bring lgricul-
ture to its present dep lorablc
straits.
Real aid would be possible, he
said. if u plan is evolved through
which speedy aid is given the
farmer. so that they can continue
as producers of food and clothing
materials for this country and for
n large part Of the world
1t may cost a billion or several
billion dollars to do this. he added,
but ".hc investment must be made. >
THE only way to avert ruin through
out the world. hc continued, Was
to have this year an abundant crop
for which two things were ncccs-
sary. credits and a fair pric; to
the farmers for their products.
Secretary Wallace also made
public the names of 2G women who.
he announced. probably would par
iticipatc in the conference as dele
gates. Iicccptanccs have already
been received from the majority OF
them.
Among the names made public
were Mrs L. c. Chapel OF Lykcs-
land. S. e., who operates Il GOO acre
farm devoted TO cotton and general
farming.
Washington. Jan Z0.-Criticisnn
Of the federal reserve boards poll
lev during the months following
the armisticc IS coupled with
recommendations that existing
banking agencies be adapted 10
meet the credit requirements Of
farmers in Il report submitted TO
congress today by the joint COM
mittec on agricultural inquiry.
The report. the second Of series
from the commission Of which
Representative Andcr CRcpublican)
OF Minnesota is chairman. deals
with banking and financial re-
sources of the country. especially
as affecting agricultural interests.
I; stresses the Importance OF 1lli-
ing the gap between short and long
time credit. and concludes that the
"present" gap can be effectively
and safely bridCed without the
necessity OF establishing any ne"
or un,ricd machinery and without
sacrificing any of the fundamental
principles upon which both the
farm loan system and the federal
reserve board must rest.
Reviewing conditions that have
the report declares:
1T is the opinion OF the COM
mission that "a policy of RESTRICTION
of loans and discounts by advances
in the discount rates of the federal
reserve banks could and should
have been adopted in the carly part
of 1919. Notwithstanding the diff
Guilty which the treasury depart
mont anticipated in floating th"
Victory loan if such Il policy wcfc
adopted
1T is also the opinion OF the
! commission that bad this policy
/ been adopted in the early part G!
! lala. much OF the expansion. spec
/ rlatiun and cXtraVaSancc which
characterized the postwar period
could have been avcrtcd.
Washington. Ian. -\ational
race congress has protested To The
! STATE. department against the re-