The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1922-01-05
DEFENDS FARM
BLOC IN CONGRESS
President James r. Howard Addresses
Members of Farm Bureau Fed
Grafton in St. Paul.
AN ASSET NOT A MENACE
Agricultural Bloc Organized Not in
Interests of Any One Class
but of All Citizens.

St. Paul, Jan. 5.-The agricultural
bloc in congress is working for the
best interests of all citizens, without
selfish motives or secret dealings, Jas.
R. Howard, president Of the American
Farm Bureau federation, said in his
address at the opening session of the
Minnesota Farm Bureau federation's
third annual convention here. For the
first time, Mr.. Howard disclosed that
the agricultural bloc was organized in
the Washington office of the farm bu-
reau federation, in an effort to force
the passage of constructive legislation
'to save not only the farmer but the
industries of the whole nation"
Mr.. Towards address was devoted
to vigorous defense of the agricul-
tural bloc. Insisting that the bloc is
mot menace, but national asset,
he said that there have been "blocs
galore" in congress, but that the farm
bloc is the only one ever organized
without selfish motives and in the in
terest of all citizens" The American
Farm Bureau federation deplores con-
ditions that make bloc legislation
necessary, he said. No organization,
he said, has been more pronounced in
its opposition to class legislation or
the development of class conscious
ness. The federation never has ad-
vocated and never will advocate any
policy that is not for the we'll being
of all Americans" he declared.
With Mr.. Howard on the program of
the first day of the convention were
Congressman Sydney Anderson, chair
man of the joint congressional COM
mission investigating agricultural con-
ditions; Mrs. Ellsworth Richardson,
an Iowa farmers wife; Governor J. A.
o. Preus and w. C. Coffey, dean Of
the college Of agriculture. The first
days sessions were at University
farm, where the day was set aside as
minnesota Farm Bureau Federation
Day" of Farmers and Home Makers
week. Sessions during the remaining
two days of the meeting were sched-
uled for the state capitol.
"Present banking machinery is not
adapted to the farmers require
ments," Congressman Anderson told
the farm bureau delegates, summarize
ing the findings of the congressional
commission. ''The fundamental re-
quirement of agricultural credit is that
the note or obligation must be of such
maturity that when it becomes due it
can be paid not by making another
note, but out Of the proceeds Of the
farm. That requires longer period
of maturity than the six months which
is now allowed in the case of paper
discounted with the federal reserve
bank. We must find some means to
make it possible for the farmer to get
a production credit Of a sufficient
length of maturity that he can pay the
note when it becomes due out of the
proceeds of the farm. That means
paper running from six months to per-
haps three years. The principal rea-
son which prevents bankers from TAX
ing paper Of such maturity now is that
there is no way by which the banker
can get the money on the paper if it
becomes necessary for him to get it
before the paper becomes due. So
long as the banker finds it impossible
to get money on the paper before ma
turity, if he needs it, he is going to be
unwilling to make loans for that
length Of time. To meet this situation
1T is necessary to provide a facility
through which this paper of longer
maturity can be discounted so that the
banker can raise the necessary cash if
he needs it. There are three ways by
which that can be done. One is to
create in the federal land banks
farm credit department. Another is
to create an entirely new agency, and
another way is to modify the War
Finance corporation in such way as
to enable it to do that sort of bust
ness. My Judgment about it is that
the faircst plan is to create in the
federal land banks a farm credits
department having authority to dis
count for banks-state and national,
incorporated livestock associations, all
banking NEUTRALITY-SUSPICIOUS. of this
character. This paper could be made
the basis of an issue of short-time de-
bentures, just as farm mortgages are
now made the basis of farm loan bonds
under the present farm loan system.
What I think we need, so far as this
longer-time credit is concerned, is
nothing more nor less than reserve
bank through which this paper can be
discounted and through which the far
mer can reach the investment pool of
the country"