New Britain herald., 1922-01-23
HARDING ASKS MORE
 FUNDS FOR FARMERS
Urges Development Of New Code
 Of Law and Business

| NuhillnElbl, iunt I'tNflDpE ment of n thorough code of law and business procedure with the proper machinery of finance, to assure the farmer as generous supply of work ! Ing capital on as reasonable terms as is granted to other industries was ad- vocated here today by President | Harding in opening the national ag- ricntural conference,
 "An industry" he said. more vi- tai than any other in which near half the nations wealth is invested can be relied upon for good security and cer- tain returns"
 Declaring that in the matter of what may be called fixed investment capital the disadvantage of the far mer so impressed public opinion that the federal farm loan board was es- abolished to meet the need. he said the farmer still needed some provision for supplying him with working capi- | tai.
 Compared with other industries, i" he continued the wonder is that az. riculture thus deprived of easy access | both investment and accommodating capital has prospered even so we'll" Lines on which financial support of agriculture may be organized, he said, are suggested in the plan of the fed eral farm loan board and in those rural finance societies which have been so effective in some European | countries
 | European Systems
 "The cooperative loaning associa tions of Europe have been effective incentives to united action by farm ers." he continued 'and have led them directly into cooperation in both production and marketing which have contributed greatly to the stabiliza- tion and prosperity of agriculture Whether these organizations are l considered as means to buying the l farmers requirements in cheaper | market, he asserted or to selling his products in more remunerative one the conclusion in all cases Is the | same; it is that the farmer is as good q business man as any other if he has the chance"
 The manufacturer. he said, whose | turnover is rapid, finds he can borrow money from the bank on short time | notes when he needs working capital and his money will come back to him
 in time to meet his short term obli | gations On the other hand, he con tinued, the farmers turnover is long one from year in most crops to sometimes three years in the cattle industry
 Gets Only Short Loans "Yet the farmer is compelled he declared, If he borrows his working capital to borrow for short periods, to renew his paper several times be- fore his turnover is possible and to take the chance that if he is called upon untmely to pay off his notes he may be compelled to sacrifice growing crops or unfinished lives to luck. Obviously the farmer needs to have provisions adapted to his re- ouirements for extension of credit to produce his working capital.
 He told the conference that con- corning the grim reality of the pres ent crisis in agriculture there can be no differences of opinion among in formed people,"
 .'Thc depressions and discourage ments," he continued "are not pecl- liar to agriculture and I think it fair to say there could have been no avoidance of a great slump from war time excesses to the hardships of re- adjus.ment. We can have no help tul understanding by assuming that agriculture suffers alone, but we may fairly recognize the fundamental dlf- fculties which accentuate the agricul- tural discouragements and menace the healthtul life of this basic and absolutely necessary industry
 The farmer, he declared, from the very mode of his life is individuals tic and, therefore "because he buys and sells as an individual, it is his fate to buy in the dearest and sell Tn the cheapest market He contrasted with this the corporation he said, which could effect economies and ac- ouire for itself power in the mar kets by combinations.
 He said there was a misconccptlon regarding the financial status of agri- culture.
 Financial Status
 If the mortgage indebtedness of farms shows, over a given period, a marked tendency to increase, the fact becomes occasion for concern, ne said. If during the same period the, railroads or the great industries con trolled by corporations. find them- selves able to increase their mortgage indebtedness by dint of bond issues, the fact is heralded as evidence or better business conditions and or cap ital's increased willingness to engage in these industries and thus inspire larger production and better employ ment of labor. Both the mechanism of finance and pre- conceptions of the community are united in creating tue impression that easy access to ample capital is a disadvantage to the tarln- or and an evidence of his decay in rrosperity; while precisely the same circumstances are construed, Tn other industries, as evidence of prosperity and of desirable business expansion.
 "It cannot be too strongly urged that the farmer must be ready to help himself" he added. This conference would do most lasting good II It would find ways to impress the great mass of farmers to avail themselves of the best methods. By this, l mean that in tho last analysis, legislation can do little more than give the farm es the chance to organize and help himself"
 He then referred to cooperative marketing. It should be possible to afford to the farmers, he said, ample
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