The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1922-01-27
Agriculture Long Has Been Given Too
Little Attention BY Financiers,
Says Executive.

Washington, Jan. 23.-Development
of a thorough code of law and business
procedure with the proper machinery
of finance to assure the farmer as gen
erous a supply of working capital or
as reasonable terms as is granted to
other industries, was advocated here
today by President Harding in open
ing the national agricultural confer.
ence.
"An industry" he said, 'more vital
than any other, in which near half the
nations wealth is invested, can be re-
lied on for good security and certain
returns"
Declaring that in the matter of what
may be called fixed investment capt.
tai the disadvantages of the farmer
so impressed public opinion that the
federal farm loan board was estab-
lished to meet the need, the president
said that the farmer still needed some
provision for supplying him with
working capital.
Compared with other industries"
he continued, "the wonder is that ag-
riculture, thus deprived of easy access
to both investment and accommodation
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 these ru-
raj finance societies which have been
so effective in some European coun-
tries.
1.-THE cooperative loaning associa-
iabdonerwork-getion
tions of Europe have been effective in
centives to united action by farmers"
he continued, "and have led them d.
rectly into cooperation in both pro-
duction and marketing which have
contributed greatly to the sterilization
and prosperity of agriculture"
Whether these organization are con-
sidered as, can to buying the farm
ers' requirements in a cheaper market,
he asserted, or to selling his products
in a more remunerative one, "the con-
clusion is the some; it is that the
farmer is as good a 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 canital
and his money will come back to him
in time to meet his short term DILL
cation. On the other hand, he con-
tinued, the farmers ~turrcv.r is a
long one, from a year in most crops
to sometimes three years in the cattle
industry.
"Yet the farmer is compelled" he
declared, "lf he borrows his working
capital to borrow for short periods, tc
renew several times before his tu1n
over is possible and 30 take the chance
that if he is called upon untinely te
pay off his notes, he may be COM
PEELED to sacrifice growing crops or
unfinished livestock. Obviously, the
farmer needs to have pro, isions,
adapted to his requirements, for en-
tension of credit to produce his work.
ing capital"
The president said that concern
ing the grim reality of the present cri-
sis in agriculture there can be no diff
ferences of opinion among informed
people," e..
THE depressions and discourage
ments," he continued, "are not pecu-
cial to agriculture and l think it fair
to say there could have been no avoid
ance Of a great slump from war time
excesse to the hardships or readjust-
ment. We can have no helpful under
standing by assuming agriculture suf-
fers alone but we may fairly recognize
the fundamental difficulties which &C.
centuate the agricultural discourage
ments and menace the healthful life of
this basic and absolutely necessary in.
dustry."
The farmer, declared he, from the
very mode of his life is individualistic
and, therefore, because he buys and
sells as an individual it is his fate to
buy in the dearest and sell in the
cheapest markets" He contrasted with
the corporation, he said, which would
effect economies and acquire a power
in the markets by combinations.
The president said there was a mis-.
conception regarding the financial
status Of agriculture.
!. II The mortgage indebtedness Of
farms shows. over a given period, a
marked tendency to increase, the fact
becomes occasion for concern" he said.
"1f during the same period, the rail-
roads 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 of bet.
ter business conditions and of capitals
increased willingness to engage in
these industries and thus inspire larg-
er production and better employment
Of labor. Both the mechanism of fl.
name and the pre-conceptions of the
community are united in creating the
impression that easy access to ample
capital is a disadvantage to the farm
er and an evidence of his decay in
prosperity; while precisely the same
circumstances are construed, in other
industries, as evidence of prosperity
and Of desirable business expansion.
1T cannot be too strongly urged