Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-01-02
SECRETARY MELLON
FAVORS CAPPER BILL
FOR FARMERS AID

bill as against its principal rival, the
Anderson-Lenroot credits measure
which recently was introduced in
con gress with the backing of Secre
tary of Agriculture Wallace and 9th
err government officials.
Secretary Mellon, in testimony
presented at closing hearings today
of the senate banking committee on
farm credits legislation and in a let
ter sent to Senator Mclean, of Con
necticut, the committee chairman,
came out in support of the Capper
bill with minor notifications and
with an amendment to extend for
nine months after next June 30, the
farm loan powers of the war finance
corporation.
Support was given the Anderson
Lenroct bill by Secretaries Wallace
and Hoover, also appearing before
the committee behind closed doors.
Secretary Wallace was understood
to have urged the committee to re-
pert the Anderson-Lenroot bill on
the ground that it was more nearly
adequate to the needs of the farmer
than the Capper bill. Mr.. Hoover
appeared to favor the Anderson
Lenroot measure, which would set up
farm credits department in the ex-
listing federal land banks with an
authorized government furnished
capitalization of $50. 100000 for tho
twelve banks.
With the views of three cabinet
members before it, the COMMITTEE;
prepared to draft legislation which
will harmonic the conflicting opin-
ions held by it's members and by
members of congress generally as
to the form of aid to be extended
farmers and live stock growers. The
committee will meet Tuesday to be-
gin it's task, and Chairman Mclean
hopes to have a bill ready for the
senate next week.
The Capper Bill
The Capper bill would provide for
organization under supervision of
the comptroller of the currency OF
private rural credits and cediscount
corporations with a minimum cap
italization of $250,O0O, for extension
of the period during which agricul- |
tural paper shall be eligible for re-
discount from six months to nine |
months, and for acceptance by fed |
eral reserve banks of paper of CO. |
operative associations Of ag1icul- |
turalists for rediscount as agricul |
tllral paper.
Secretary Mellon presented num- !
Der of objections to the Anderson
Lenroot bill, declaring that "it would |
place the government to a large ex,
tent in the commercial banking |
business, would make heavy
drafts on the treasury for the CAPT
tai of the farm credits departments
and that would mean either more
government borrowing or high taxes
on all the people" and would pro
vide for issuance of taX-eXempt col
lateral trust bonds to raise additional
necessary funds. =.
.Amplify;ng his last objection, Mr..
Mellon said, lit would come with
for
the federal government to authorize
creation of large volume of new
tax-eXempt securities at the time 1t
was seeking to shut off such securi-
ties through amendment of the fed
eral constitution.
. Pointing to the diversity of opin
;on upon the Anderson-Lenrootb bill
Mr. Mellon in his letter added:
I'm view of the Substantial objec-
tons to the bill already pointed out,
believe that the most helpful course
that can be pursued now is to adopt |
substitute measure along the
lines of the Capper bill, with the
suggested extension of the life Of
the war finance corporation until
March 81, 1924. This would adapt
our present banking system to the
needs of agriculture and include
the best features of the various
plans, upon which there is virtual
agreement.
Would Aid Farmers Il