Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-02-08
COMMITTEE SPLIT
MAY BALK FARM
CREDITS IN HOUSE
Senate "PaSsed Buck" to
House Without Examining
and Reconsidering Items in
Two Agricultural Bills
BY DAVID LAWRENCE
Leased Wire Service to The Journal

tCOpyflSnL, 1OZoJ
WASHINGTON, Feb. 7.-Presi-
dent Harding has been told that Sc
rious differences of opinion exist in
the house banking and currency
committee which will have to be
ironed out before farm credits legis-
lation can be adopted by the house.
These differences are not insur-
mountable but they involve some
fundamentals which will put the
burden of explanation on the cham
pions of rural credits to prove that
the Lenroot-Anderson bill and the
Capper bill, both of which have
passed the senate, do not duplicate
each other.
There is considerable disappoint'
ment in the house that the senate
IN effect passed the buckP to the
other branch of congress without
examining these two measures and
either drawing them into one bill or
eliminating the duplicating features.
One school of thought insists, of
course, that both bills are necessary
and that both will be helpful. If
this is true-and there is no dispo-
sit:on in the house to form judg-
ment without careful study of the
n1easures-then the two bills will
be adopted But the impression
which many house leaders have is
that the two plans cannot be made
to work side by side and that the
house would put itself in very
compromising position by allowing
both to become law.
Mr.. Harding has not advised the
house which measure he prefers but
has expressed the hope that legisla-
ton could be secured before March
f. That, of course, is the advantage
which the house has in the situa.
tion-a prolonged wrangle would
mean no legislation and another
fight in the senate in the next ses-
sion. There are members offhe adj
ministration who feel that the pres
ent bills are tame compared to the
measures that will be offeressa when
the radical clements come into con-
troll in the next congress.
Criticism of Bill
The criticism which one hears
among house members is that the
senate tried to please everybody.
The LenroOt-Anderson bill went
through by almost unanimous VOTE
vet it is claimed that many members
of the senate did not believe the
measure would ultimately become
law because they expected the house
to change it materially. The theory
commonly advanced is that some or
the diplomats who steer things IN
the senate believed it would be wiser
to let all the important farm credit
bills go through and avoid lengthy
debate and thus pave the way for
consideration Of ship subsidy, the
debt agreement and other measures
which must be tackled in the re-
mainins DAYS before this session au-
tomatically ends on March a. 10
have done otherwise might have stir
red the wrath of the farm bloc and
blocked everything.
In the house, however, the two
bills can be drawn into one or else
one dropped altogether and When the
final bill is offered in conference
between the two houses further mou-
ification can be made.
SuperficiaIly the difference between
the Lenroot-Anderson bill and the
Capper bill are not apparent. ThelF
defenders claim that each reaches
different kind of problem. The peo-
Dle who helped frame the Cappef
bill insist that it not only aids the
live stock industry but enables all
farmers tn get long time credits
through the added amendments to
the federal reserve act and the for
nation of re-discount corporations.
1t is designed to stimulate state ana
national banks and private banking
by government supervision. Inc
government itself advances no mon
ey.
In the Lenroot-Anderson bill, how
ever, the government makes an mi
tial outlay of SEC, 900 900 by furnish
ing capital for the credit depart
ments of the farm banks. Addition
al funds are to be obtained by the
sale of tax exempt bonds. The OPP
ponents of the bill claim this is
merely setting up a rival banking
machinery and that it puts the gov
eminent further into the banking
business and makes of the govern
ment a competitor with state banks
and privately organized loan asso-
Citations. They say the country
banks will be hurt by it and iSspSt
that the bonds will not be sale6Ule
in the present market.
Capper Measure
In answering to this the friends
of the Lenroot-Anderson bill say the
Capper measure doesn't go far
enough and doesn't furnish the in
termed;ate credit that is needed by
the individual farmer who has no
cooperative organization to help
him and who isn't affiliated with a
loan association. They argue that
it means three-year credit.
Some Of the house leaders who
have discussed the situation with the
president say that a multiplicity of
banks and banking system will only
| hurt agricultural credit in the long
run and that it is the obligation OF
congress to decide upon one plan
and not both.
The house has a real problem on
its hands trying to do the work I'M
| finished by the senate in rural credits
and the situation is unique. Usual
! ~ the house passes problems on to
the senate for more careful consid.
Grafton and accepts what the senate
does. The upper house has this
time looked upon the house as the
avenue of escape from farm blocs,
pride of authorship and other cir
cumstances which caused it to let
the various farm bills slide through
without much ado about any of
them.