The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-06-02
New Laws For
Farmers Loans

The need for better facilities for
providing credits of intermediate
length to farmers seems well estab-
lished the National Bank of Com
merce in New York believes. In the
June issue of its magazine, Com
merce Monthly, the bank declares that
although commercial institutions are
amply able to supply short-term funds
there is a real demand for legislation
by congress to readjust the machin-
cry for making agricultural loans
having a maturity of from six months
to three years. The plan to amend
the Federal Farm Loan Act for this
purpose and the temporary extension
Of the life of the War Finance Cor
poration, it believes, merit serious
consideration.
There are number of bills pend
ing in congress designed to improve
credit facilities serving the agricul-
tural community" Commerce Monthly
says. "Of course, these are only one
class of period of business depression,
and which aim to palliate an economic
condition. However, agricultural
legislation especially merits consid-
GRAFTON, for the evidence indicates that
the farming class has had to bear a
very heavy burden during the period
of deflation. In the general debacle
of wholesale prices of 1920 and 1921,
agricultural products were consp;cu-
Gus. The purchasing power of farm
products, in terms of all other COM
modities, was in April, 1921, but 63
per cent as great as in 1913, which
fact directly reflects the relative
harshness with which defation has
borne upon the farming class.
Commercial banking agencies are
in a position amply to provide for
agricultural advances of maturity
up to six months, and paper taken on
such advances is rediscountable at the
Federal reserve banks. However, COM
mercial banks are unwilling to take
any great amount of paper the ma
turity of which is for more than six
months, partially because it is not re-
discountable. 1t is just here that some
sort of Encouragement recommends
| itself.
"That steps should be taken to make
financing of such activities easier is
one of the conclusions reached by the
Joint Commission of Agricultural In
CURRY. In its report IN Credit was
included the draft of bill which sub
sequently was introduced into both
houses of congress in the form of an
amendment to the Federal Farm Loan
Act. The bill is designed to provide
credit machinery which will meet this
demand for agricultural advances OF
a maturity of from six months tc
three years. Due to the press of othe,
legislative business this bill has re.
ceived little attention in either hous,
of congress. However, it seems tc
have been based upon thorough in
vestigation of the fundamentals of
the problem and merits the serious
consideration which it no doubt will
receive in time.
/ Another move in the way of legis.
lation to cure agricultural ills is the
extension of the life of the War Fl
nance Corporation. The work done by
the War Finance Corporation togeth-
er with continuing business uncertain.
ty no doubt warrants the extension OF
life for another years of this tenn
porary organization
Regarding other proposals for rem
edial legislation which are being adj
vanced at this time, the National
Bank of Commerce in New York says
"Some of these propose to put at
the disposal of the farmers huge
amounts through various existing
banking agencies, the funds involved
to be advanced by the government.
Other plans are revolutionary and
would establish complete new sys-
TENS of rural credit machinery. Nota
bic among these is bill providing
for the establishment of a landschaft
! system which would advance money
en- short-term mortgages. The plan
as outlined bears much resemblance to
our present Federal Farm Loan Sys-
tenn in function and Organization.
| Such duplication of machinery
would appear wasteful upon it's face.
"Those who now propose the pend
ing legislation should show that the
experience of the last few years has
|