The Mankato free press., 1923-08-31
MATCH THE DOLLARS
WITH THOSE OF ALLIES
Baltimore Man Has His
Way To Solve Crisis
HEARD AT FARGO
Proposal To Work In Connec-
ton With Huge War Debt
And Reparations
lAssoc,ated Press Dlspatch.l ]

ASSOCIATED Press Dispatch.l
Fargo, n. D., August 2S.-Match-
ing every doiiar spent Dy the alIieo
countries on farm products in this
country with cancellation OF a cor
responding amount OF their war
debt 10 the United States is con-
templated in a plan presented to
the Six State Farmer Banker con-
terence here today.
George II. Stevenson, farmer and
former president or the Federal
Land Bank OF Baltimore, presented
the plan TO the conference, which
was called to decide upon a defin
ite, tangible plan Of assisting in
bringing about relief for the grain
growers OF the northwest"
On invitations sent out through
all banks in the Ninth Federal Re-
serve district IN North and South
Dakota, Minnesota, Montana, Wis
consin and Upper Michigan, repre-
sentatives Of agricultural colleges,
Z officials Of farmer bureau fedora
tions and other organizations met
with the bankers.
The Stevenson Plan
Mr.. Stevenson presented the plan
as a solution tor relief OF the
American farmer. in connection
with the adjustment of the Allied
war debt and reparation pro-
blem," and set it forth as follows:
That the government Of the
United States make proposition
TO our late Allies who are indebted
TO us in excess OF eleven billion
dollars, that for every dollar Of
farm products they buy from US,
our government will credit their
dahf 10 hv liEa aunnttnf
The price paid, for instance, in
the case of wheat, to be the Liver
pool price, plus tariff differential of
thirty cents per bushel, less trans
portation costs.
This arrangement, which should
continue for a series Of say from
five to ten years, would result un-
Questionably in not only a premium
for our eXportable products, but
also provide a means by which our
allies may wipe out their war OBJ
legations to US, thus removing an
[her barrier to our isolation, for 1t
r.. a fact that this Indebtedness in a
measure stands between US and a
! proper relationship to all Europe.
Its effect is both economic, as re-
,fected in Exchange, and psychologi
cal insofar as Indebtedness is always
a barrier to best relations between
both men and nations.
Might BE Extended to Germany.
Further, this plan might well be
extended TO Germany as a basis Of
credit upon the Allies debt to us
for all purchases of agricultural
products by Germany, in considera-
ton Of a credit for like amount be-
ing made upon the German reputa
tion debt by the Allies.
Such a plan should appeal to
both America and British bankers to
finance Germany's purchases, and
particularly to France, among all
the allies, as a means of getting un-
der way liquidation Of at least d
part Of Europe's stupendous debt.
BE it understood that, in advanc-
ing the above plan, 1t is believed
that none Of the nations now con-
tributing to the world supply of ag-
ricultural produces will be injured
through the consummation Of such
an arrangement.
'First-It may be assumed
that Europe will, in the future
as in the past, absorb our sur
plus agricultural products at the
world price.
"Second-All nations will prof
it directly through an adjust
ment Of the allied debt question
contemplated under this plan.
The Underlying Factors.
Further, in the conclusion, it is
well to keep in mind that purchases
under the above, arrangement would
be made at the. world price plus tar
iff differential and that transactions
would be consummated behind
closed doors, thus obviating any ap-
preciable disturbance of the worlds
markets" ss..'
h. -, L.
er said, the necessity for indepen-
dent or family unit production, the
wide variety of products grown up
on the average farm, the season
able production and marketing of
staple crops, resulting in market
J gluts and uncertainty Of income, are
the underlying factors which con
stitute the inherent weakness Of ag-
riculture."
Those whose duties have brought
them into intimate association with
the farmers. and who have taken
the time and trouble to analyze and
study the causes underlying the
feeling Of unrest among them, un
hesitatingly admit that the plight of
agriculture is serious.
-- Cause Present Crisis.
1.-THE present crisis has been pre-
cipitated by the fact that the farmer
is today receiving such a low price
for the commodities he has to sell
an comparison to costs of the things
he buys, his production costs, on the
one hand, being directly Influenced
by American standards of living
land values, equipment costs, etc
in other words, the farmers produc-
ton, comes in direct competition
with protected or tariff subsidized
, Industries, while on the other hand.
the products from the American
farms are selling on an European
market where prices are affected by