The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-02-26

NEW YORK--fn n discussion OF
the February lettor of the Mechanics
and Metals National bank euumcr-
ates the causes Of tho present 0gri-
cultural difficulties ms follows.
Farmers who bought land at n
valuation based on prices two ana
three timca the present market rate
cannot mako ends meet. prices OF
farm products hayc fallen much fur
ther than those Of the manufactured
articles tho farmer must buy. high
costs OF transportation have forbid
den tho ahipment OF much OF the
fafin output, and the disordercd
markets of International exchange
have blocked profitable foreign
outlet.
Romcdy for this condition Is to be
found by opening and stimulating
markets. II says. aud this prospect
cannot be furthcrcd by class logtsla-
lion. but must be brought about by
tho broad application OF economic
laws what the farmer prOposcB Ia
n period ne initiation for his benefit.
Tho letter proceeds TO anolyzc the
situation,
1T Is against n background like
this" the letter says, calling for
wisdom and sympathy and for spo-
cinl study in order that correct so
iutions might be provided, that tho
course OF the agricultural bloc In
congress has thus far been to lcgls-
late for the appointment OF farmer
on the federal reserve board, and TO
seek means for the release TO agri-
culture OF an increased amount Of
banking credit. In annlyzlng these
measures q ought TO be obvious that
'ho direct and special benefit to the
farmer of having one OF his par
ticular kind occupy u place on the
federal reserve board would be re-
mote one.
Judicial and Nonpartisan.
Tho fundamental requirement OF
this body. In It's national service, II
that II shall serve only In judicial
and nonpartisan capacity, serving
and not that OF n single group or
class. The farmer has not had n
special advocate on the board In tho
past, yet no has benefited from the
federal reserve system as much ns
any other. and fully as far az that
system under existing laws could
benefit him.
According TO n report made 20
congress ON January 20 by joint
commission which Investigated the
country's agricultural affairs, the
lato period of expansion were reln-
lively greater than 10 other classes
with Now York providing much OF
the credit used In extending egrl-
cultural accommodations) while
during tho period OF acute deflation
neither the federal board nor the
reserve banks took any action which
caused greater curtailment OF ngrl-
cultural lines than others.
AS for the froer use OF credit, it
~ recognized on every slide that
there IL "A gap between the facilities
for short and long time agricultural
credit, as provided by existing agen-
cles and that constructive amend
ments OF the federal farm loan act,
10 the end that this gap may be
bridged, are required. Manufactur-
ing and commerce have In the past
been afforded facilities for their en-
couragement and expansion to
greater degree than agriculture, the
commercial banking machinery OF
the country having from the outset
been constructed chiefly on lines laid
down by their financial require
fnents.
'The farmer, 10 he sure. has had
recourse to this machinery. but with
his turnover period long one--at
least n year for any crop, and two
or three years for llvestock--he has
regularly found himself In the un-
fortunate predlcamont OF seeking
working funds under commercial
banking methods, borrowing for
short periods and renewing his paper
several times before his turnover was
possible. so that he has had TO take
tho chance, as President Harding
put II I'm his address on January rs,
that if he were called upon untlmely
to pay off his note no might be COM
PEELED TO sacrifice growing crops or
unfinished livestock
Raising Prices.
"The farmer needs to have provi-
sions adapted to his requirements, so
that long time credit will supply him
with working funds. But rs regards
the Immediate release OF n large sum
OF banking credit, Il is obvious that
low money rates and ovcrabundant
bank loanA Just now would help the
farmer only as they inaugurated n
period of secondary initiation. This,
10 be sure, would raise the prices OF
the goods he has to sell. which IL
the last thing he desires.
"What requires to be emphasized
today is the condition os current
farm Indebtedness. as compared with
the farmers ability to meet that In
debtedness. The commission re-
ferrred to above, on the strength
of its investigation into agricultural
conditions. pointed out TO congress
In its report of January 20 that farm
Indebtedness In the United States
has doubled In the last 10 years,
while the late drop In prices has had
the effect of again doubling the In
debtedpess SO the question which
presents itself is whethcr the farm
er's pressing need at'the moment if
after all for freer credit. A letter
received by this bank In tho middle
OF North Dakota has an interesting
comment on this. 1t says:
"'Before election every man NJ
Washington Is talking how To aid the
farmer The dream seems to center
around how TO loan the farmer
money. lie owes too much now. lie
can't pay interest on what he owes
live like a human being and break
even, TO say nothing about reducing
the principal OF his debt 1t doesn't
take statesman or a near-states'
man TO figure It out. II congress
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