Evening star., 1923-02-02
CAPITAL KEYNOTES
by PAUL v. COLLINS.

Then in 1920 the curve showing busi-
ness failures ran up, up; up. Then
came the action OF the government In
re establishing the War Finance Cor
poration, so that credits were stimu-
lated for the export of food products.
loans were made to finance such mar
kets for our farm produce. Also.
there na,,e,. was q readjustment Of THE the
toward country banks, exports and
farm products reacted and prosperity
came back to farmers. So general
business revived, Unemployment Of
100000 men was wiped out by the
renewed activity of factories, all fol-
lowing the earlier stimulation of ag-
ricultural prosperity Literally. the
trade of the Exclusive dealer IL
porous market for the golden grain
of the farmers, and the jobs of the
factory hands do likewise
Today the purchasing power of the
farmer, according to the departments
official chart. is only s. of normal.
compared with the period before the
war In 1890 it was s6. In 1919 Il
was about 120.
There is much discussion in Con
gress over the pending legislation 10
| improve credit facilities for farmers.
The increase of borrowing power does
not always mean increase OF debt,
| but in most cases 1t means for the
farmers a decrease OF interest charges
and A longer term. SO that they VIII
not be hampered in their pending
growing of live stock by having the
| funds recalled before the stock Is
| ready for market.
/ The great. problem of farm rro@-
=, perity-on which hangs the pros
perity Of ali of us in the cities. too
lies not merely in credits, but ulti-
mately in profits. That problem can
| be solved only by recognition that
crops for homo consumption, rather
| than for export, must govern the
situation. The foreign markets are
hungry enough, but are so PROSTATE
that they are Improbable.
In normal times the export markets
set the prices for home markets. but
today all must look TO the activities
ployment, for the good markets for
| the farmers. We cannot keep on
! lending credits abroad for artificial
stimulation of foreign demand even
facilities in distribution. through CO.
operation and lower freights. CON
Germs the merchant and the rnanufac-
| turer far more than the rate of for
| cign excha nge.
| Senator Bursum's bill to lend bill
! lion dollars TO Germany in order I"
! finance that nation in buying our
agricultural products and thereby
stimulate prices for our farmers
meets with the naturally expected
opposition of the Secretary OF the
| Treasury. Mr.. Mellon.
! Mr.. Mellon says that he 'sees no
reason for taking any more favorable
| position with respect TO the German
government than toward foreign gov
ernments associated with US In the
war" He objects to lending money
to, foreign BUYERS without aaeaaa,f -
ability to repay principal and interest
when due.
Would it not be cheaper and better
business for our government. as
straight business transaction, TO pay
!the farmers the farm value Of the'r
orops and have the crops burned or
1.-THE farms? That.would produce POI
! a an md help increase: fertility. while
! a loan Of a billion dollars never TO
be returned, would only cause fric-
ton in efforts 70 get If back. See
what a similar loan to our allies has
done for us. It brings rfdicule ane
abuse and "kisses -foElhe nag ever
I, in the. country of a recent assoclale
| in +he war" What then, should W.
-, expect from a recent enemy II VIC
LOANED it a billion?
| r x II
These remarks are not arguments
against straight charity even toward
GERMANY. .'If thine enemy hunger.
give him meat" But don't lend to
Finn. expecting to be repaid Let US
paraphrase Pinckney's famous cha'-
ienge: Millions for charity; not one
cent for European loans.