Evening star., 1923-02-02
RADICAL|SM DRAWS
FIRST SENATE FIRE
Lenro0t Attack on Brook
hart Shows Divergence of
Views Among Progressives.
OLD LINES ARE ERASED
- -,
OLD LINES ARE ERASED
Revolt Of Farmer and Demand for
Better Credits to Continue
to Influence Congress.
BY DAVID LAWRENCE.

nh DAVID LA NNENSE.
Radicalism. which helped so ma
terially in sweeping into office men
like Senator Brookhart of Iowa last
autumn. has drawn it's first fire in the
United States Senate. The revolt of
the farmer and his demand for bet
ter credit facilities in the marketing
OF crops has Influenced the entire
course of Congress this session and
VIII continue to be of paramount i'm
portance until the session ends on
March 4.
But 1T was not expected that Sena-
tor Brookhart's doctrines would be
/, compared To those of I,enin and
, Trotsky by member of the so-caIied
I progressive. group in the American
senate like Mr.. Lenroot of Wisconsin.
ne differences Of opinion betv cen the
Wisconsin and Iowa senator's are fun
udinehtaI however. and they indicate
thAt the aIignmentS OF the moment
are not between the conservatives or
Ola guard or "reactionaries" as
western rolk are wont to term Sena-
tors and representatives from indus
trlai and financial communities of the
east, but between westerners. be-
tween friends OF the farmer, between
variety of plans.
shows Diversity.
Senator Lenroot's speech noinfine
OUT that Senator Rrookhart was pro-
posing the establishment OF co-opera-
tive banks is only a phase of rural
credlt Leg islation. but il illustrates
| the diversity OF view in Congress. Mr.
brookhart wants "All business in in
lerstate and foreign commerce trans
acted under n federal charter. the
terms of the charter to h. the I;och-
dale cooperative system OF producers
ana consumers. ami the antitrust
laws repealed"
Under this plan the cooperative
banks would enjoy an exemption
which other banks do not have
namely. they would have less capital
and the earnings would he limited.
ana eacn man vote would be- equal
regardless of the stock he owned
Mr.. Lenroot's chief objection is that
this involves radical departure from
eNist!ng national banking laws. and
wnile It might be worked out with
Sa Safeguards, the farm Legislation now
p+iHs considered ougt not 10 be in
! numbered with these matters
Lenroot Bill Opposed.
That's just the nub of the whole
thing. Even Senator I.eur0ot is pro-
posing something which some mem
Der OF the Harding administration
LIiHh !HilIiatliCdDIs. II EDt uHSDunG.
Secretaries Hoover and Wallace have
leaned toward the Lenruot- Anderson
| bill and indorsed some Of it, features.
Secretary Mellon, however. has come
out openly against the same measure
His views are more likely TO prevail
in the end, He feels that the Len
| root bill creates a separate system
| OF banks for agricultural purposes.
and he feels that since the govern
ment is to make the initial OUTLAY of
no 1,
to be responsible for management ana
administration. Under such cirCun-
stances he believes the federal T.. :
serve system ought 10 be broadenei
instead of introducing rival system.
Mr. Mellon doesn't like tho propO Sa
! that additional funds. after the ritia
capital Investment is provided by the
government, shall be raised by selling
taX-exernpt securities. He believes
! il would be inconsistent for the gov
ernment, which is just now pressing
for the adoption of a constitutional
Gmerdn7 ent to prohibit the issuance
| OF all ax-eNempt securities, 20 make
! An exception in favor of one class Of
ipeople.
/ Present System Best.
Il am convinced" says Secretar!
Mellon. that in the long run our
iiberalized. will serve the needs OF
| agriculture far better than any rival
! system built upon government CAPT
tai and under government control. \
rural credits program like that en-
bodied in substance in the Capper bill
would draw capital and credit from
iavailable sources for use where need
! ed by the agricultural and live stock
! industries, and would accomplish this
1 on a business basis without depend
| ing on government money ana tax eS-
emptions.
| The Capper bill, which has passed
| the Senate, now is before the House
and will be adopted in a few days. II
provides for extension of agricultural
credit paper to nine months and
! makes more elastic the powers of the
| federal reserve banks. 1t also eX-
| tends the life of the War Finance Cor
! poration for another nine months
until the transition period in rural
| credits from the present practice &c
| the operations under the new laws
, adopted at this session is on.
! COuzens OverruIed.
| Senator Couzens OF Michigan tried
| to get the Senate to recommit all the
! pending farm measures except the
I Camper bill and appoint joint com
! mfttee to study the whole question
| Of the relationship of state banks and
private banks to the federal reserve
| system and take action at the ne.
| session of Congress, but the farm
| bloc, which is behind the Lenroot-
Anderson bill. wouldn't brook delay
| Before the measures finally gel
| through the House and conference
/ they will be materially changed, as il
| is evident the administration feels il
can do more through the federal re-
| serve system than through another
banking organization for agriculture
Copyright. 1921