Perth Amboy evening news., 1922-12-09

WASHINGTON. Dec. 6 - The
forthcoming session of congress will
bring consideration and probably
enactment OF important legislation
designed principally to benefit the
American farmer. The elections
strengthened the hand of the agri-
cultural bloc winch, as a group, rep
resents with especial care the inter-
ests of the tiiler of the soil in the
halls of congress.
When, two years ago., the prices
of farm products declined with an
unprecedented sharpness and the
farmer received less for his product
than it cost him to produce it, the
farming community was convinced
that the underlying reason for this
calamity was an inadequate credit
system.
Many special inquiries were made
into the problem, the most compre-
nensive being that made by the
Joint Commission OF Agricultural
Inquiry, of which Representative
sydney Anderson of Minnesota was
chairman, and which comprised
members of both senate and House,
taken largely from the agricultural
bloc. This investigation revealed
that the farmer lacks the precise
SOfL OL GIeu4t AaSAS
needs.
1t was sound hal there are at
present two kinds of credit open to
the farmer. First. the federal re-
serve system provides an open door
whereby the farmer may OBTAIN
credit for six months. provided his
local bank will endorse his notes.
This is the longest term paper which
the Federal Reserve banks admit
the farmers being favored over
manufacturers, merChandlsers ana
other business men who are he4d
down to n~inety-day credit. How
ever six months is net long enough
for the farmers.
The second kind OF credit is that
provided by the Federal Land
banks through the Federal Farm
Loan system. This is credit based
on land mortgages. To obtain TINS
financial aid, the farmer mortgages
his farm and he may have thirty
years in which to pay of interest
and principal. The farmers make
good use of this facility and many
hundred of millions is lent to them.
However, this does not I'LL all n
needs of the agriculturist.
Farmers Get Paid Annually
The farmer plants his crops, as a
general rule. in the spring OF the
year. He must buy seed and Ter
tilizer and hire men to ploW n
land, Then, throughout the long
summer he must bear the expense
of eultivating and. finally, OF har-
yesting. The worker in other e
gets his pay envelope on Saturday
night or, at the longest, at the n
OF the month, but TIE farmers n
velope comes only once a year.
What the farmer wants is a mid
die financing facility, with govern
ment backing and supervision,
somewhere between the short term
facility of the federal reserve banks
and the thirty-year| farm mortgage
loan. Specifically, he wants nlne
months to the year credit. TINS
will enable him to make a o and
with the proceeds finance his en-
tire season At the years end when
his crop is harvested and sold. ne
will have a comfortable PERIOD IN
which to pay of.
In addition to what the general
farmer wants, there nus be a still
different type of credit for the hVe-
stock raiser. He wants three-year
credit. He must have funds TO carry
the expense of breeding calves n
lambs raising them, Ieedlng thenl
and bringing them to market.
The agricultural bloc will go into
this winters session with a leglsla-
tive program to bring about some OF
this assistance for the farmers ana
in all probability some new law Will
be written on the statute books on
this subject, for the administrator
has announced that 1t Is IN SYM
pathy with the plan.
There tire four pending bills de-
signed to bring about the medium
length farm credits. They are the
Lenroot-Anderson bill, the Mc-tad-
den-Capper bill, the Simmons Dill
and the Norbeck bill. All have
points of similarity and the final act
doubtless will be made up by taking
the best features of each. They VIII
provide credits for farmers. ranging
from nine months to three years.
Under the existing farm loan act,
which Is the thirty-year farm mort
| gage facility, the maximum loan Is
$4,000. 1t is planned to mend
| this to permit a farmer to obtain
$4,000. It is hoped to get such a
| bill through by March i, next. That
date, each IA ia n on which
many farm mortgages mature in all
parts of the country and it is hoped
20 get such a bill through by March
/ next. That date, each year. is ons
On yhtsh many fexm p2oxtgsgss ma