The Washington times., 1922-05-21
Of FARM
PRODUCE GOES
UP GRADUALLY
Economic Status Of Farmers
Is Becoming Normal, Say
Official Reports.
By w. II. ATKINS.
international News Service.

Rise In prices of leading farm
products reflects improvement in the
economic status of the farmer.
While losses in the farm regiops
have been severe and largely On.
avoidable because of the slump away
from peak prices a year ago. the re-.
ports. to the Federal Reserve Board
and the Department Of Agriculture
show that the growers are going
ahead with new crops in orderly
fashion.
Government officials expect to see
a great increase in foreign demand
for American products before the
close of the year, and this will en-
hance the farmers position. II is be-
lieved, for large demand from
abroad for Americas surplus will
cause prices OF the farm commodi.
ties to rise in value.
Credit Is Needed.
The Government now faces the
problem of insuring for the farmer
some additional credit methods by
which he may more easily finance
his crop operations. regardless OF
which price conditions in another
year, however favorable for the
farmer. still leave him with made.
quate financing opportunities.
Officials of the Administration in
cline TO the view that as the farmer
has only one turnover each year
some method must be devised to en-.
able him to get long.term loans at
reasonable rates OF interest.
There is growing distrust by the
Administration of a system which
permits the farmer to be "gouged"
by money pirates on funds borrowed
and needed for necessary operations.
Ways are to be found 10 alleviate
this condition. The President and
his advisers now are addressing
themselves to this subject. 1t will
be followed probably by demands
that Congress enact new laws or
amend existing ones TO simplify the
farmers banking procedure.
Favor Long Term Loans.
The farmer. instead of being forced
to pay IL per cent interest to a usu-
rious banker in States where such
! excessive rates are exacted under
local laws should be allowed to have
long-term loans, at low rates,
through agencies which the Gov.
ernment should give permanent
form.
One OF the suggestions now ad.
vanced is that Congress should au-
thorizc the establishment Of a farm
credits department in each Of the
Federal Land Bonks throughout the
country. This would provide for an
intermediate type of farm credit run.
ming from six months TO three years
at reasonable rates of interest.
These credit departments would be
authorized ~ discount for any ma
! tional bank, State banks. trust com.
panies or savings institutions obliga-
tions whose proceeds are to be used
for agricultural purposes or live
stock raising.
Many Suffer Loss.
Officials of the Federal Reserve
Board have admitted that the bank.
ing machinery of the country was
not equipped to care for farmers
credit appeals in the readjustment
crisis last year. In the heavy price
decline farmers flooded the banks
with appeals for financial aid to pre-
vent forced sales of their property.
Many of them were caught under
the crash of the price tumble.
1t Is now freely agreed among au.
thorities who have tackled the prob.
lem for the Government that new
credit machinery for the farmer
must be established, and at the
earliest possible time, to make 1t
possible for the farmers of the coun-
try to continue production profitably,
and with adequate credit help for
their normal operations.