The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-02-27
FARMER AID BILLS
EXPECTED To PASS
HOUSE TOMORROW
Leaders to Press for Imme-
date Action Upon Meas
ures Which Will Be
Taken Up Today

WASHINGTON, Feb. 26.-Farm
credits legislation, over which there
has been row in Congress for more
than two weeks, is to be taken up
tomorrow in the House under plans
contemplating vote not later than
Wednesday. Passage BIZ the House
was forecast by leaders who believed
there would be comparatively little
difficulty in adjusting the differ
ences with the Senate.
Major provisions of the two Sem
ate measures, the Lenroot Anderson
and Capper bills. are incorporated in
the bill as reported from the House
banking committee. The formal re-
port on the legislation was delayed.
but Chairman McFadden issued
statement explaining It's principal
purposes.
This legislation is an endeavor
on the part of Congress-" Mr.. Nc
Fadden said, ito enact a law that
will provide Intermediary credits for
the agricultural interests of the
United States, and by agricultural
interests is meant all those people
who are engaged in the production
of agricultural products, inciading
the warehousing and orderly mar
keting organizations.
o o O
Creates IL Banks.
Specifically, this bill provides for
the creation of IL distinct interme-
date credit banks which are to be
managed and in the control of the
federal farm loan board. Each is TO
have capital of 100000 or a TO-
tai of S60.000,000, which is to be
subscribed by the Secretary of the
Treasury, and the stock Is to become
the property of the United States.
Provision also Is made for the Gre
alton of corporations with a mini
mum capitalization of s250,000 to
deal in agricultural paper having
maturity of six months or more, and
a further provision for the organi-
cation of rediseount corporations
with a capital of S1,O00.0OO or more
to rediscount such paper for the
loaning corporations.
These intermediate credit banks
can issue debentures up to $500, 900,
900. in addition to their capital stock
of $4,000, 900. 1t will be noted in
this respect that this intermediary
credit institution provides capital for
agricultural interests almost double
of the amount that was called for
during the operations of the war
finance corporation.
O, o o
Provides Reimbursement.
Provision is made for the reim
bursement of the government by the
application of one-half of the net
annual earnings, SO that ultimately
the government should be fully re-
imbursed for it's capital stock sub
scription while still owning the
banks with the same original capt.
tai and a surplus of 100 per cent
After this has been accomplished
the bill provides that 10 per cent of
the net earnings go annually to the
surplus and the residue to the fed
eral government.
"All in all the bill is an honest
attempt to provide all necessary
credits which the agricultural inter
ests of the country claim to be in
need Of. At the same time it has
been the honest intent of the trainers
of the bill to safeguard the provi
sions of the institutions in their OPP
erations that the least possible harm
could come to the institutions Gre
ated and theA greatest amount of
good to those who are to be served"