Perth Amboy evening news., 1923-01-17
FARMERS GETTING RESULTS
IN ORGANIZATIONS
Daily Letter by Frederic j. HaskIn

done by two or three active ass9-
Citations and declarations of farm
leaders. They o have the farm
ers of the country fairly well o.
ganized and in a position to ask
congress to take such steps as may
be necessary to bring back farm
prosperity.
The Agricultural Bloc in Congress
was the first achievement of the
newly organized farmer. Members
OF both senate and House Were
quick to see that the organized far
mer was the most powerful factor
in the country and that he meant
business There followed a quick
succession of Developments to i'm
prove his position. First, railroad
rates on farm products were lower
ed so that farm products could be
shipped to market at a lower cost.
Then bank rates were lowered so
that the farmer could borrow for
smaller interest charges. In the
various political elections, both 10
cal and national, this organized
farmer made his Irresistible force
! felt
The two recent developments in
dictate that he Is increasing his
power. The principal reform on
which the farmer has concentrated
his attention has been improvement
in farm credits. He has complained
that the merchant and the manu-
facturer can get all the financial &C.
c-ommodation they need at banks
but the farmer cannot. The answer
to all this has been that farme 3
want money for too long a time.
The merchant Or manufacturer
borrows for from 80 to 90 days.
The farmer wants to borrow for pc
riods running from six months 10
a year and the stock raiser wants
to borrow money for three years.
There are indications now that this
need will be met.
The new ruling of the Federal
Reserve Board provides hat bank
ers' acceptances-a form of notes
running for six months-may be
handled through the Federal Re-
serve banks and also that accept
ances secured by crops held in stor-
age nay be discounted at these
banks. This puts the farmer on the
same basis, practically with the
gives the same facility to this sort
"a loPtl az mas bCEH SlNGIl " lIlS
short time commercial paper,
The ruling vas made with spe-
cial reference to farmers co-opera-
tive associations. It now is per-
mitted for these c~o-operatives to
issue acceptances based on their
crop and have these &cceptarcss
cashed by the member banks of the
Federal Reserve Svsta
Storage Ruling Important
The storage ruling is of special
importance. One of the bitterest
complaints of the farmer is that
when his crop is made, he must
dump it on the market because he
cannot borrow money with which to
pay his expenses while ne is wait
ing for better prices. The effe It
of all farmers selling their crops
at the harvest season naturally do
presses prices. With the ability to
borrow, they could hold back por-
lions of their crops and thus con-
tinue to get good prices oye r a coz
siderable period of time. The new
ruling enables them to do tn S.
They can put their crops in storage
and then borrow on the warehouse
receipts, waiting six months, If they
desire to pay back the money.
Within that time they presumably
would have opportunity to sell ct
fair prices.
Elmer Knutson of st. Cloud,
Mimi. is the man who has been
appointed by the Car Service Divl-
sion of the American Railway AS
ISOLATION to act as a special rail-
road representative for the benefit
Of the farmers. The Railway AS
ISOLATION has provided this facility
so that if the farmers have any
complaint about the way the rail-
roads are handling their shipments.
they will have some one with
whom to discuss the matter. Mr..
Knutson's instructions are to travel
about the agricultural producing
sections and keep in close touch
with cooperative and other farm
organizations.
Car shortage at harvest periods
has been n of the chief evils
against which the farmer has had
to contend. One of his oldest
complaints is that his crops Otter
rot on the ground because he can
not get cars in which to ship them
70 market 1t will be part Of Mr.