The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-06-24


saved for the American farmer
| vitality important and gravely
| menaeea home market. The resump
ton Of the war finance operations,
| backed by the resources OF the only
| government on earth that was able
to summon such a credit, enabled the
| American farmer to compete for
sales aboard
Farm Hoard Reviewed.
| Along with these measures.
| prompt steps were taken to put the
| Federal Farm Loan board back into
| business, Like the war finance cor
| poration, 1t had been in a state OF
! suspended activity for want of money
to loan, 1t was given q credit OF
| S50,0oo,000 and resumed loaning on
| farm property,
~ bill to facilitate cooperative
marketing OF farm products was
passed, Legislation to prevent harm
full gambling In agricultural futures
was passed. held by the courts to be
unconstitutional, and quickly re-
| passed with the defects removed, The
act for the control and regulation
| of the meat packers was enacted.
| Important reductions of feight rates
! on agricultural products were ef-
| fected. Certain restrictions upon the
operation OF the Joint-stook land
| banks, which had prevented them
from doing their share In financing
the farm, were removed The loan
| limit of $4,000 which had formerly
| been imposed upon the Federal Land
banks was inceased to $4,000, a
change which is certain greatly to
| increase the particabla usefulness
| and range of operations of this sys-
| tenn.
"a measure of the utmost I'M
portance to farmers In those parts OF
| the country where irrigation Is the
very basis of agricultural life Is the
act authorizing formation of irriga-
ton districts, whereby the water
| associations to conduct their relations
with the federal government. Former
| ly the settlers had to adjust all Diff
ferences of this kind as individuals.
at great expense and Inconvenience
to themselves. These water-users' or
ganizations promise to become nuclei
of highly useful corporations In as
senhling. shipping, and selling the
products of the irrigation districts,
Further encouragement was extended
to the Irrigation farmers by amend
ling the farm loan act to provide terms
on which the land banks could make
loans to farmers on the irrigation
projects, whose conditions and neces-
stiles require special treatment,
yet another provision in behalf of
this same community Is made by the
new law which authorizes extending
the time on payments due from irrtga--
tion farmers to the government. This
measure has given new chance to
thousands of farmers in the irrigation
areas who have fallen under the Same
misfortunes that have afflicted other
farmers, and who had been unable
temporarily to meet their commit
ments to the government.
Serve Farmer, serve Everybody.
IF the recital of this long list OF
Accomplishments In the farmers be-
half shall have seemed to suggest that
Washington has been devoting itself
with a special and perhaps a partial
assiduity to the agricultural interests,
shall reply that the farmer has re-
ceived nothing more than was coming
to him; nothing more than he needed;
nothing more than was good for him;
and nothing that was not also good
for all of our national interests,
bound up as they are In the nation
reaching mutually of dependence and
that I am proud to be, able to como
to you today and tell you of what
has been done, because in doing 1t
we have served not only the farmer
but everybody else in this land.
But that is not all. I have reserved
till the last what we may well APP
praise the browning achievement OF
the entire list. l refer to the code
of agricultural credit legislation
known as the agricultural credit act
of 1923, which became law in the
closing days of the last Congress- 1t
has not been possible yet to perfect
machinery for administering this act,
but do not hesitate to express con
fidence that this scheme of agricul-
tural credits, taken In connection
with the other enactments I have de-
scribed, furnishes the basis for the
most enlightened. modern, sound, and
efficient scheme OF agricultural fl
nance that has been set up In any
country, and will enable the farmer
in no distant future to free himself
from obstacles which have made II
difficult heretofore to conduct farm
operations upon a sound, business ike
basis.
Before describing this program of
advancement in agricultural finance,
permit me word by way of bring
ing before our minds the back
grounds of the agricultural problem
Farming is the oldest of all indus
tries. 1t has supported the commu-
nifty in peace, and has been the most
essential line of industrial defense in
war; commonly, too, the first victim
of war. In olden times the conqueror
distributed the subjugated lands to
his fayorites, and his prisoners as
slaves to till 1t. Thus land owner
ship became the mark of favor and
aristocracy. Later, the feudal regime
substituted the somewhat less severe
conditions Of serfdom and villenage
for those of slavery on the soil. Then
came the modern institution OF an
agricultural peasantry, politically
more free. but economically still held
In letters of old tradition.
n n
Farmer An IndividuaIist.
Merchants and manufacturers. in
the Middle Ages, devised banks to
help them finance their ventures
Banking methods developed which
served their purposes, but were not
adapted to the farmer The farmers
way OF life made him an individual
list. He could not organize the great
corporations which we call corpo-
rations. The banks did not furnish
credit of the kind and on the terms
Re needed it. The manufacturer and
merchant. doing a large gross bust
ness in proportion to capital, having
a short turnover period. wanted to
borrow working capital for short pc
RODS. The farmer, with a long turn,
over period, wanted working capital
on very different terms.
Now, the bank of deposit and dis
count Is easily the most completely
cooperative institution that human
society has devised. But 1t got start
ed dealing primarily with industry
and commerce, and the farmer never
quite caught up with it. The rail-
road or industrial corporation raises
plant capital by selling bonds; the
| farmer, by the essentially similar OPP
Grafton of selling a mortgage on his
| land. Both still require at times. to
| supplement thisf capital. by making
less permanent loans to pay operat-
| ing costs.
These loans the banks make out
| of the funds intrusted to them by