The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-06-05
NEm lAms ZOE EARMERs, loans.


azine, Commerce Monthly, the bank de-
clares that although commercial institu-
tions are amply able to supply short
term funds, there is a real demand for
legislation by congress to readjust the
machinery for making agricultural loans
having a maturity OF from six months
to three years. The plan to amend the
Federal Loan Farm Act for this purpose
and the temporary extension OF the life
OF the War Finance Corporation, II be-
lieves, merits serious consideration.
There are a number OF bills pending
in congress designed to improve credit
facilities serving the agricultural COM
munlty." Commerce Monthly says. "of
course, these are only one class of the
many proposed measures which have
grown out OF the difficult period Of bust
ness depression, and which aim to palh-
ate a economic condition. However, ag-
ricultural legislation especially merits
nsideration, for the evidence indicates
that the farming class has had to bear
a very heavy burden during the period Of
deflation. In the general debacle Of
wholesale prices Of 1920 and 1921. agri-
cultural products were conspicuous. The
purchasing power OF farm products, in
terms Of all other commodities, was In
April, 1921 but IS percent as great as In
1918, which fact directly reflects the rel
alive harshness with which deflation has
borne upon the farming class.
Commercial banking agencies are in
position amply to provide for agricul-
tural advantages Of maturity UP to six
months, and paper taken on such ad-
vances is rediscountable at the Federal
reserve banks. However, commercial
banks are unwilling to take any great
amount OF paper the maturity Of which
is for more than six months, partially
because It is not rediscountable. 1t is
Just here that some sort Of rearrange-
ment recommends Itself
THAT steps should be taken to make
financing of such activities easier is one
of the conclusions reached by the Joint
Commission of Agricultural Inquiry. In
its report on Credit was included the
draft bill of which subsequently was in
troduced into both houses OF congress in
the form of an amendment to the Federal
Farm Loan Act. The bill is designed to
provide credit machinery which viii meet
this demand for agricultural advances of
a maturity OF from six months to three
years Due to the press Of other legis-
lative business this bill has received lit
tie attention in either house of congress.
However II seems to have been based up
on a thorough investigation of the fun
damentals OF the problem and merits the
serious consideration which 1t no doubt
will reveive in time.
Another move in the way OF iegisla-
ton to care for agricultural ills Is the
extension OF the life OF the War Finance
Corporation. The work done by the War
Finance Corporation, together with con-
| tinuing business uncertainty no doubt
warrants the extension Of life for anoth-
er year of this temporary organization.
Regarding other proposals for remedial
legislation which are being advanced at
| this time, the National Bank OF Com
merce in New York says:
Some of these propose to put at the
| disposal OF the farmers huge amounts
| through various existing banking agen-
cies. the funds involved to be advanced
| by the government Other plans are rev.
dictionary and would establish complete
new systems OF rural credit machinery
! Notable among these is bill providing
| for the establishment of landschaft
| system which would advance money on
short-term mortgages. The plan as out
| lined bears much resemblance to our
present Federal Farm Loan System In
! function and organization. Such du-
plication OF machinery would appear
wastefui upon its face.
Those who now propose the pending
| legislation should show that the expe-
rience OF the last few years has estao-
iished that the farm loan system as de-
signed and operating is deficient and
\ that there is a legitimate demand for
| additional machinery TO grant loans on
/ the basis of farm mortgages.
"Fending legislation which provides
/ for the erection of extensive new ma
ehinery for agricultural finance should
be regarded critically. It Is certain that
! It win merit passage only II and when
/ a careful examination reveals that il
will indeed cure certain existing Ills
which present machinery cannot cure
/ The need for encouraging the granting
/ OF certain types of agricultural credits
\ with a maturity of from six months te
three years seems well established. The
proposal OF the Joint Commission OF Az
i riculture to extend the activities of the
/ farm loan system to achieve this result
has found favor quite generally This
| ana other proposals viii doubtless re-
/ ceiye consideration when congress has
4 cleared it's docket OF the tariff and sol
diers' bonus. For this reason those who
have at heart the best interests OF oui
rural communities should form an in
tenigent opinion as to the best method
OF improving credit facilities serving as-
ricultural interests. The existence Of such
an opinion may well be an insurance
against an enactment which in the enc
might prove but wasteful or otherwise
/ Undesirable experiment"
/
ruEv UtNAIIv WENT CRAZY