Evening star., 1922-01-21
FARMERS CREDITS
SOUGHT IN REPORT
Commission Would Have Bet
ter Adaptation of Existing
Bank Agencies.

Recommendations that existing
banking agencies be adapted to meet
the credit requirements Of farmers is
made in the second section of the re-
port Of the joint congressional COM
mission on agricultural inquiry. sub
mitted yesterday, coupled with a criti-
cism of the Federal Reserve Boards
policy during the months following
the armistice.
Representative Anderson. republi-
can, Minnesota. is chairman of the
commission. The report deals with
banking and financial resources of the
country, especially as affecting agri-
cultural interests. It stresses the I'M
portance Of filing the gap between
short and hong time credit. and con-
effectively and safely" bridged
without the necessity Of establish
ing any new or untried machinery,
fundamental principles upon which
both the farm loan system and the
federal reserve system must rest.
Farmers' Conditions Reviewed.
Reviewing conditions that have con-
fronted farmers since the war, the
report declares:
at is the opinion of the commits
sion that a policy of restriction of
loans and discounts by advances in
serve banks could and should have
been adopted in the early part of
1919. Notwithstanding the difficulty
which the Treasury Department an
ticipated in floating the victory loan
if such a policy were adopted
mission that had this policy been
adopted in the early part of 1919
much OF the expansion. speculation
and extravaganza which character
ICED the postwar period could have
been avoided.
Might Have Averted Trouble.
1.-The commission also believes that
had such a policy been adopted in
1919 the difficulties. hardships and
result of the process of dehation
and liquidation would have been
diminished"
The report summarizes the commits
sion's recomm mendations as to better
credit facilities for agricultural in
terests thus:
"The commission believes that the
credit problem Of the farmer can
best be met by adapting existing
banking agencies to his credit re-
quirements. In meeting these re-
1uirements there is no reason why,
the purposes for which they were
originally created. all of the banking
agencies of the country can not be
used by adapting them TO the farm
er's requirements. These require
ments are for credit of sufficient
maturity to make payment possible
out of the proceeds of the farm. This
means d credit running from SIX
months to three years, depending
upon the character of the commodi-
ties to be produced and marketed.
In the case of crops six months may
be in some instances sufficient but
in tho case Of live stock three years
may be required.
Remedy in Proposals.
= 1.-THE commission proposes to meet
these requirements by authorizing
any federal land bank. through a sep
arate department created in it under
restrictions. limitations. conditions
and regulations adopted by the Farm
Loan Board. to rediscount paper on
which money has been advanced TO
or used by the farmer for agricultural
purposes having a maturity of not
less than six months or more than
three years at rates of discount to be
fixed by the Farm Loan Board for any
national bank. State bank. trust COM
loan company.
"In addition the commission deems
it desirable to permit the federal land
banks to make loans direct to CO.
operative associations of farmers or
ganized under state laws for the pur-
pose Of marketing staple agricultural
products when such loans are secured
by warehouse receipts upon such
products.
THE notes OF obligations repre-
senting loans or discounts by the
federal land banks are to be convert
ed into short-ttme debentures and
sold to the public in the same way
as farm loan bonds are now sold.
"It is proposed further that notes
taken or discounted by federal land
bank shall be eligible for rediscount
with any federal reserve bank. when
such loans have reached maturity
of less than six months. In addition.
any federal reserve bank is authoriz-
ed to buy and sell the debentures is
sued by the Farm Loan Board to the
same extent and in the same way as
they now buy and sell farm loan