The New York herald., 1922-12-02
SATURDAY, DECEMBER 2. 1929.
Benefits for the Farm That Are
Benefits for the Country.

Benefits for the Country.
It is with deep satisfaction that
THE NEW YORK HERALD welcomes
the Administration program for the
benefit of the American farmer. For
months this paper has been pointing
out to Congress and to the Federal
Reserve Bank system that the inter-
est OF the country no less than the
interest of the farmer imperatively
demands that agricultural credits
both timely and adequate be pro-
vided on a solid national banking
basis; that the banking facilities for
the farmer must be fitted to his
needs and conditions as the banking
facilities Of the manufacturer or
merchant are fitted to his needs and
conditions. Now comes the Admin
istration program supported by the
responsible Senate leadership to put
this issue of rural banking facilities
on a solid footing.
The maximum loan limit Of Fed
eral farm land banks is to be raised
from $4,000 to s25,000, and while
this is a marked improvement over
present restrictions the maximum
might better be twice as high. Big
farming is as much natural devel-
opment of American enterprise and
American growth as big business.
The live farmer who has the ambi-
ton. ability and courage to extend
his land ownings and increase his
crop raisings is on the roll Of the
most valuable assets the country has.
To balk his purpose and dwarf his
achievement by holding him down
to chicken feed banking facilities
that are good enough only for petty
farming Is bad banking practice and,
when the Government Is behind the
farm financing, bad national policy.
Again, provision is to be made in
the Administration program for the
creation OF voluntary agricultural
credit associations to deal primarily
with loans on live stock. This is
better than nothing, but 1t is not so
good as 1t might be. For it is as
much the function OF useful banking
machinery TO lend on live stock,
pending the liquidation of the stock
raiser's goods" as II is to lend on
warehouse stocks OF factory supplies
and on loaded shelves OF merchan-
disc.
For the regular banking machinery
not to provide such banking facilities
for a fundamental industry OF the
country is short sighted, narrow
minded banking. as EUGENE MEYER,
Jr., so stoutly contends. For the
national banking laws not to make
II possible and even essential for the
Federal Reserve Bank system to
take care of such fundamental in
dustry is weak statesmanship.
And still again the Federal farm
loan act is TO be amended to permit
tho rediscount in the Federal Farm
Land Bank system of agricultural
production paper and agricultural
marketing paper. This Is some
thing, but not enough. Here too the
clear headed business man who is
now chief OF the War Finance Cor
poration is right when he maintains
that there is no economic or inner
ent difference between discounting
the good paper representing cotton
ia the raw and the good paper rep
hot :
ton; no difference between the good
paper backed by wheat on the way
to market and -four from that wheat
IN the stores OF the wholesale or
retail merchant.
The merchants discounts and the
bank rediscounts run as long as IL
normally requires him to turn over
his stock. whether three months or
discounts run from sixty 20 ninety
days n those are his requirements
for bank facilities and credits. The
banks rediscounts run similarly.
And when the farmers natural re-
, auirements call for credit of one
year because he can turn over his
soods-his crops-only once year
he needs and must have not special
but regular bank facilities covering
as long a period as that.
When the stock raiser cannot turn
over his goods--his horses or cattle
perhaps for two years, or, In some
instances. II he is beginning TO raise
his herds, for as much as three years,
he must have regular bank credits
for even az long time az that.
The regular banking system Of the