The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-02-21
Farm Bloc
and Mellon
Capper Bill Is Favored by Sec
retary of Treasury Len.
root. Anderson Measure
Has Cabinet Support.
Rural Credits Big Topic

Washington. Feb. 90. Pending
rural credits legislation occasioned
a head-on collision between the trea s.
ury and the farm bloc.
Secretary OF the Treasury Mellon.
responding to request from Chair
man McFadden, republican, Pennsyf-
vania, of the house banking and cur
rency committee, unsparingly con-
demned as financially unsound the
Lenroot-Anderson bill proposing to
establish an independent agricultural
1ediscount system. He approved the
Capper bill to liberalize and extend
.1he credit facilities of the federal re-
Serve system for the benefit of agri-
culture and proposed the incorpora-
tion therein of some minor features
OF the Lenroot-Anderson bill.
The farm bloc strongly favors the
Lenroot-Anderson as well as the Cap
per bill and purposes to go to the mat
with Mr. Mellon in the committee and
in the house. The committee is
scheduled to report the Capper bill
within 4s hours. and II 1t fails to en-
dorse the Lenroot-Anderson bill also.
the farm bloc will lead fight to
force the latter measure through the
house.
Myer Framed Bill.
Secretary Melons views coincide
With those of Eugene Myer. jr., man.
aging director of the War Finance
corporation. who framed the Capper
. bill. The position OF Secretary Mel.
Ion, however, does not accord with
that Of other influential members OF
the administration. Secretary OF
Agriculture Wallace took a prominen.
part in the drafting of the Lenroot
bill and the essential features Of the
measure have been approved by Sec
retary of Commerce Hoover. The
Lenroot bill also was endorsed in sub
stance In President Harding's annual
message to congress in December.
paltry sum of $4,000 Part of this
The house today passed the Strong
bill. making administrative changes
in the federal farm loan act BY a vote
of $50 to 81. after eliminating the pro
vision authorizing appointment OF
agents to make loans where farm
loan associations were organized or
functioning properly.
1T seems TO me- said Mr.. Mellon
of the Lenroot-Anderson bill. that a
becareful study of the measure leads
necessarily to the conclusion that It's
financial provisions as now drawn.
are unsound and dangerous, and that
s It's administrative features are un
workable.
Favcrs More Investigation.
In my opinion, the greatest service
could be rendered to agriculture bs
enactinE into law at the present ses
sion the Capper bill and withholding
action upon the Lenroot bill Until tbs
situation can be more thoroughly in
1estigated
THE Capper bill has the endorse
ment of the livestock industry, and OF
the great cooperative marketing
movement. It will go far in my opin-
ion. in satisfying the needs OF those
sections OF the country which have
suffered in the past from Inadequate
credit facilities. At the same time. il
is financially sound, and in its admin
istrative features avoid the excessive
Capitalization which. In my opinion
constitutes serious defect in tbs
Lenroot bill
There are certain features of the
Lenroot hill which have great merit
and should, in my opinion. be incor
porated in the Capper bill by youi
committee. The farm credits depart
ments contemplated in the Lenroo
bill. are, for instance. authorized to
make loans direct to cooperative mar
kcting associations upon warehous 50
receipt security. 1t seems to me that
similar powers could he given TO the
rediscount corporations contemplated
in the Capper bill. The Lenroot bill
also renders eligible for rediscouni
with federal reserve banks the paper
of factors based upon agricultural
products in their raw state. Il seem.
to me that this provision is sound
- and I recommend its insertion in tn,
Wrapper bill.
II should also suggest including IL
The Capper bill the section of thr
Lenroot bill which repeals the amend
ment 70 the federal reserve act au
thorizing progressive rediscount rates
summary OIL stand.
II I may sum up briefly the
reasons why. in my opinion, the
capper bill Is preferable to the Len
root bili is this: The Lenroot bill
attempts to create a separate and In
dependent rediscount system for sgri
culture. Necessarily this will b,
secondary and in all probability, or
inadequate rediscount system. l
seems 10 mean. on the other hand tn,
agricultural interests can properl,
demand that they be give the bene
fit upon sound lines. Of the best AM
most adequate rediscount system
which the country can furnish. ant
that. in my opinion. f. the fedora
reserve system. lberalized and eY
tended as proposed in the Capper bill
The Capper bill aims at Strengthening
and developing the existing bankin,
structure and the federal resery'
system. and rendering them more use
ful and more suited to the needs 0
agriculture
IT-.. L A. c. H..