New-York tribune., 1922-01-21
Greater Credit to
Farmers Asked i'm
Report toCongress
Commission of Inquiry i'm
Plea That Existing Bank
ing Agencies BE Adapted
to Meet the Requirements

WASHINGTON, Jan. 2O.-Criticism
Of the Federal Reserve Boards policy
during the months following the .rmi-
st'ce is coupled with recommendations
mat existing banking agencies be
adapted to meet tho credit REQUIRE
meh's OF farmers, in a report sub
mttcd to Congress to- day by tho ioint
commission of agricultural inquiry
Inc report, the second of a series
from the commission, Of which Rcpre-
sentative Anderson, Republican, Min
nesota,. is chairman, deals with bank
ing and financial resources of the coun-
try, especially as affecting agricultural
interests.
Reviewing conditions that have con-
fronted farmers since the war, the re-
port declares:
1T IS the opinion Of the commission
that a policy Of restriction of loans
and discounts by advances in the dis
count rates of the Federal Reserve
banks could and should have been
adopted In Che early part of 1910, not.
understanding the difficulty which the
treasury Department anticipated in
hontlng the Victory loan if such a
policy were adopted"
COMMISSIONS Recommendations
The report summaries the commits.
slon,s recommendations as to better
credit facilities for agricultural inter.
csts thus:
"The commission believes that the
credit problem of the farmer can best
be met by adapting existing banking
agencies to his credit requirements
In meeting these requirements there is
no reason why, without destroying
their utility for the purposes for which
they were originally created, all o!
the banking agencies Of the country
cannot be used by adapting them to
the farmers requirements. These re-
qulrements are for credit of sufficient
maturity to make payment possible out
OF the proceeds of the farm This
means credit running from six
months to three years, depending upon
the character of the commodities to
be produced and marketed. In the
case of crops, six months may be in
some instances sufficient, but in the
case of livestock three years may be
required.
The commission proposes to meet
these requirements by authorizing any
Federal land bank through a separate
department created in it under restric-
tions, limitations, conditions and regu-
lations adopted by the Farm Loan
Board to rediscount paper on which
money has been advanced TO or used by
the farmer for agricultural purpose s
having maturity of not less than six
months or moro than three years at
rates of discount to be fixed by the
Farm Loan Board or any national bank,
trust company, savings institution or
livestock loan company.
Loans to Cooperative Bodies
'1n addition, the commission deems
it desirable to permit the Federal land
banks to make loans direct to co-opera-
tive associations Of farmers organized
under state laws for the purpose of
marketing staple agricultural products
when such loans are secured by ware
house receipts upon such products.
"1he notes or obligations represents
ing loans or discounts by the Federal
land banks are to be converted into
short-time debentures and sold to the
public in the same way as farm loan
bonds are now sold.
ut is proposed, further. that notes
taken or redscounted by Federal
land bank shall be eligible for redis.
count with any Federal Reserve bank