The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-11-23
FARM BLOC PLANS
CREDIT AID LAW
Corporation to Buy and
Sell Farm Products
May Be Formed
FOREMOST ON SLATE
Senate Members to Meet Next
Week to Formulate
Rural Plans

WASHINGTON, Nov. 22--Eu-
outraged by the recommendation
Il President Harding in Tuesdays
message that the nations credit sys-
TENS be broadened to provide relief
for the farmers. members of con-
rress from the agricultural states to-
dOy inaugurated steps to bring about
enactment OF rural credit legislation
before the end of the present con-
gress next March.
developments at the outset CEN
tered largely in the senate and In
cuded Introduction of bill by
Chairman Norris of the agricultural
committee for the creation Of a gov
capitalized corporation to
buy and sell farm products; an ad-
dress In the senate by Senator Ladd,
republican, North Dakota, warning
against enactment Of rural credit
legislation based on the federal re-
serve system and a conference be-
tween is senators from the livestock
growing states and a committee OF
the American National Livestock as
ISOLATION at which the draft of a
new credit bill was discussed.
These developments together with
stat- ments by leaders indicated
that the passage of rural credit leg
islation would occupy a foremost
place on the program of the agri-
cultural bloc. The senate members
OF the bloc will hold the first meet
Ing of the session next week and at
that time will endeavor to agree
upon a program.
Bill Is Similar.
The bill presented by Senator Nor
ris for farm products corporation
Is similar to a measure offered by
the agricultural committee chairman
81 the last session. but which was
supplanted by legislation extending
the life of the war finance corpora
ton and its powers in the furnishine
OF agricultural credit until next
June 80.
Senator Norris would have created
a corporation with n maximum capi-
tai subscribed by the government Of
800 100000 and a directorate OF
three members, the secretary of ag-
riculture and two other appointed
by the president. The corporation,
in brief, would be authorized
to acquire elevators and warehouses:
TO buy farm products in the United
States and to sell them either in this
country or abroad and to operate
unChartered government tonnage in
The measure was referred TO Senator
Norris committee but there were
no indications that It would receive
consideration much more favorable
than its predecessor.
The bin presented. by the Nationar
Livestock association committee to
the meeting of senators from the
livestock states was drafted by the
committee in conference with war
finance corporation officials. and is
designed primarily TO aid the live
stock producers. although commit
tee members argued IL also would
provide relief for farmers. It's enact
ment or the passagle OF legislation
having similar features. Fred B. Blk
by, president Of the association. told
the senator's, was necessary TO save
the livestock producers of the west.
Capper TO Introduce.
Senator Capper, republican, Kan
sas, who presided at the meeting,
will introduce the bill tomorrow and
1t IS expected to serve with other
measures now pending or to be in
troduced as basis for credit legis-
lation. The bill would entail no use
OF federal funds. II would provide
for the formation under federal law
and under the supervision of the
cultural credit corporations with a
minimum capital of $4,000, to
which national banks might sub
scribe to the aggregate OF not more
than 10 per cent OF their paid-in
captal and surplus.
The bill contemplates utilization
of the federal reserve board machin-
cry to certain extent and drafts is
sued or drawn for agricultural pur-
poses, secured by warehouse receipts
and accepted by member banks,
would be made eligible for redis-
count with a maturity of six months
instead of the present three months.
The use OF federal reserve ma
chinery was objected TO by several Of
the senator's attending the confer
ence who voiced the belief expressed
earlier In the day by Senator Ladd in
his speech that a successful farm
credit plan could not be entangled
with the federal reserve system
Indications were unmistakable that
any legislation to extend rural cred
It's through the federal reserve
board as 1t Is understood TO be ia
Vorable by some administration Of
ficials would be bitterly opposed IN