Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1922-01-06
FARM BLOC SER ING
THE WHOLE L ! TON \
PRES. HOWARD TENDS AGRI-
Is CULTURAL GRO 2AT STATE
TEDERATIONl MENTION

st. Paul. Jan. 3-The agricultural
ssst Il 81 ali
selfish motives or secret dealings,
James R. Howard, president Of the
American Farm Bureau federation,
sion of the Minnesota Farm Bureau
federatioh's third annual state con-
vention here. aEy II --
closed that the agricultural bloc was
organized i'm the Washington office of
the farm bureau federation. in an eff
fort to- force the passage Of construc-
farmer but the industries Of the whole
nation" The farm bloc is responsible
for practically every PIECE Of co IN St u;
months. he declared.
Mr.. Howard's address was devoted
to g. vigorous defence of the agricul-
mot a menace, but. national asset"
he said that there have been "b1ocs
galore" in congress, but that the farm
bloc is the only one ;,. eyer 9rganiz re q
interests of all citizens
The American Farm Bureau fedora
ton deplores conditions that make
bloc legislation necessary. he said. No
pronounced in its opposition to class
legislation or the development of class
consciousness. The federation never
has advocated and never will advo-
being of all Americans" he declared.
With MI: 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.
days sessions were at University farm
where the day was set aside as Min
Of Farmers and Homemakers' week
Sessions during the remaining two
days of the meeting were scheduled for
the state capitol.
adapted to the farmers require,
ments," Congressman Anderson told
the farm bureau delegates. summarize:
ing the findings of the congressional
The Fundamental requirement 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
lowed in the case Of paper discounted
with the Federal Reserve bank. We
must find some means to make it pos
sible for the farmer to get production
credit of a sufficient length of ma turity
that he can pay the note when it be-
comes due out of the proceeds Of the
farm. That means paper running from
six months to perhaps three years. The
principal reason which prevents bank
crs from taking 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 impOs-
sible to get money on the paper before
. maturity, if he needs it, he is going tt
be unwilling to make loans for that
length of time.
ITO meet this situation it is neces-
sary 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 ,tc
create in the Federal Land banks a
Farm Credit department. Another is
another way is to modify, the War
Finance corporation in such a way as
to enable it to do that sort of bust
ness My own judgment about 1T is
that the -fairest plan is to create in the
federal Land banks Farm Credits
department having authority to dis
county for banks-state and national,
banking institutions-paper of this
character. This paper could be made
the basis Of an issue Of short-tlme
deventures, just as farm mortgages are
now made the basis of farm loan bonds
under the present farm loan system.
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.
me, can reach the investment pool OF
the country.'