Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-12-09


Forthcoming session of congress will
bring consideration and probably. enact
ment OF important financial legislation
designed principally to benefit the
American farmer. The elections
strengthened the hand Of the agricul-
fural bloc which. as q group, repre-
sents with especial care the interests
of the tiiler Of the soil in the halls of
congress.
When, two years ago, the prices OF
farm products declined with an un-
p~recedented sharpness and the farmer
received less for his product than IT
cost him to produce it, the farming
community was convinced that the
underlying eason for this calamity was
an inadequate credit system.
Many special inquiries were made
into the problem. the most comprehen-
sive being that made by the joint com
mission of agricultural inquiry of which
Representative Sydney Anderson OF
Minnesota was chairman and which
comprised members of both senate and
house, taken largely from the agricui-
turai bloc. This investigation revealed
that the farmer lacks the precise sort
of credit facility which he needs.
1t was found that there are at pres
ent two kinds of credit. open to the
farmer. First, the federal reserve sys-
tenn provides an open door whereby the
farmer may obtain credit for six
months, provided his local bank will
indorse his notes. This is the longest
term paper which the federal reserve
banks admit, the farmers being favored
over manufacturers, merchandisers and
other business men, who are held down
to 90-day credit. However, six months
is pot long enough for the farmers.
The second kind Of credit is that
provided by the federal land banks
through the federal farm loan system.
This IS credit based on land mortgages.
To obtain this financial aid, the farm
er mortgages his farm and he may
have 30 years in which to pay off
interest and principal. The farmers
make good use of this facility and
many hundreds Of millions are lent to
them. However, this does not fill all
the needs of the agriculturist.
Farmer Gets Paid Annually
general rule, in the spring of the year.
He must buy seed and fertilizer and
hire men to pillow the land. Then.
throughout the long summer, he must
bear the expense of cultivating. and,
finally, of harvesting. The worker in
other lines get his pay envelope on
Saturday night, or, at the longest, at
the end Of the month, but the farmers
pay envelope only once a year.
What the farmer wants is q middle
financing facility. with government
backing and supervision, somewhere
between the short term facility Of the
federal reserve banks and the 30-year
farm mortgage loan. Specifically, he
wants nine months to n year credit.
This will enable him to make a loan and
with the proceeds finance his entire
season. At the years end when his
crop is harvested and sold, he will have
a comfortable period in which TO pay
off.
In addition to what the general farm
er wants. there must be a still different
type of credit for the livestock raiser.
He wants three YEA credit. He must
have funds to carry the expense of
breeding calves and lambs. raising
them, feeding them and bringing them
to market,
The agricultural bloc will 90 into
this winters session with a legislative
program to bring about some Of this
assistance for the farmers and in all
probability some new law will be writ
ten on the statute books Oh this sub
ject, for the administration has an
nouDced that it is in sympathy with
the plan.
There are four pending bills de
signed TO bring about the medium
length farm credits. They are the
Lenroot-Anderson bill. the McFadden-
Capper bill. the Simmons bill and the
Norbeck bill. All have points of SINH
larity and the final act doubtless will
be made up by taking the best fea-
lures of each. They will provide cred
its for farmers ranging from nine
months to three years.
Under the existing Farm Loan Act.
which is the 30-year farm, mortgage
facility. the maximum loan is $1,000.
1t is planned to amend this to permit
d farmer to obtain s25 900. 1t is
hoped to get such a bill through by
March / next. That date. each year,
is n on which many farm mort
cages mature in all parts of the coun-
trty and it il hoped to have the new
authorization ready in time to permit
farmers to onyert their old mort
cages into new with the higher maxi
mum loan.
Under existing law, to obtain these
loans, national farm loan associations
must be formed. and no loans can be
made except through them. 1t Is felt
that where no such associations have
been organized, the farmer is not ade-
quately taken care Of. Therefore. a
will be proposed providing for the
establishment of farm loan agencies
which will deal directly with morgan |
lied farmers and obtain loans for
them on the security of their farms.
Farm Loan Bonds Gilt Edged
The millions which are lent to the
are obtained from the sale
bonds known as farm loan bonds
which have a status az qu~asi-goyern-