The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1922-08-16

market began to turn in November,
and sheep, corn and hogs began TO
feel the influence of restored financing
! facilities in the latter part OF Decem-
Der. and in January andF February.
The total loans up to the first OF
INV nv the War Finance Corporation
were 1884, 874,582. In Minnesota alone
there has been advanced for these pur-
poses S11,912,730. have recelveo
letters from some farmers complain
ing that under this law loans were
not made direct to farmers. ms Is
true, and could not Of necessity DC
otherwise. The object Of the bill was
to meet a great emergency at Ine
earliest possible moment, in order
to furnish a market for farm products
and it was not possible if wise, fol-
the Government to set up machinery
throughout the nation. The only prae-
tical way was to furnish capital tc
move the crops, to find a market, ano
to make loans directly to farmers
to relieve the local banks as addition
al credit could be given the farmers.
! If the Government had undertaken
to create an agency to deal directly
with all the individual farmers of the
country it could not possibly have been
done within the time necessary for re-
lief, and would not be wise in any
event. The Government should DO no
business which the people themselves
can do, and do better Farmers must,
and should, in the main rely for their
credits on banks and financial institu-
lions in the local communities, and it
| is only the province Of Government
to aid these, to make them efficient,
and see that reasonably cheap farm
credits are insured.
| I have also heard complaints that
in some cases the banks charged ex-
cssive rates of interest. The War
Finance Corporation enabled them to
charge from to 51A percent, and If
any bank charged more than 2 per
cent in addition to this, it violated the
law. This 2 percent was allowed the
local banks for taking the risk and
handling the business, as it was not
possible to reach the individual far
mer in any other way. The Govern
ment, of course, could not regulate
the rate of interest the State banks
should charge for funds otherwise than
those furnished through the War FL
nance Corporation. / think every one
will tell you that this measure met a
great emergency, without which there
would have been a general financial
smash among the country banks,
which would have reacted disastrously
upon the farmers.
More or less connected with this
subject of farm credits and finances
is a measure which I introduced and
which was passed through the Con-
gress during the last session in the
winter of 1921. That bill authorized
the President to appoint representa-
tive of agriculture upon the Federal
Reserve Board. AS you are aware,
the Federal Reserve Board has gener-
al control, over the Federal Reserve
Banks which rediscount paper for
member banks throughout the country.
1t has been the policy of the Govern
ment to have representatives OF varl-
Gus business institutions, as we'll as
banks, on this Federal Reserve Board,
men who are familiar with the vari-
Gus parts of the country, the business
and credit conditions.
We thought it very desirable that
the farmers should have representa-
tive on this Board, not necessarily a
man solely engaged in farming, but
a man who is familiar with the needs
of the farming communities and with
farm credits. The bill was signed by
the President, and it is expected that
verv soon he will make an appoint
ment. He is endeavoring to find man
of the highest standing, character and
| 7 hoy
do so. AS the Federal Reserve sys-
TEN and the member banks through
out the country must OF necessity be
the great reservoir of credits as we'll
for farmers as merchants and manu-
facturers, it will undoubtedly add to
the efficiency of the Board to have
such representation.
| COOPERATIVE MARKETING
| One of the most important bills
passed by the last Congress in aid OF
the farmers was the cooperative mar
keting bill. / had the honor of having
charge of this bill in the Senate. 1t
had been before the Congress for two
| years and had passed in different
forms in the House and in the Senate,
but the conferees of the two Houses
could not agree. finally moved in the
Senate to adopt the House bill, which
l thought fully met the necessities of
the case and had the approval of the
farm representatives.
l know of no movement of greater
Importance to the farmers than that
of cooperative marketing. In many of
the products of the farm, especially
those not handled in the great mar
kets, the difference between what the
farmer receives and what the consum-
er pays is, in many cases, exhorbitant
and unreasonable. Furthermore, the
indiscriminate marketing, without in
telligent cooperation, tends to glut the
market and depress prices, without a
corresponding benefit to the consumer.
It. also tends to waste and is not.
therefore, in the interest of national
] economy.
There are in this country 6,448,343
farmers. 1t was claimed by the op-
ponents of this bill that it was not
in the interest of the public to allow
! the farmers to create great national
tr,,st When Won stop tn think of the