The Delta independent. [volume] (Delta, Colo.) 1886-19??, 1924-02-22


creditors. There have been large and
increasing bank failures. Bills have
been introduced providing for the lend
ing by the federal government of
moneys directly to the farmers for
purposes of assisting them in con-
version of their farms on the basis OF
diversified farming l am not heartily
in favor of these bills, but they do
not and will not compass the entire
problem.
Many OF the farmers are, however,
in such jeopardy from their creditors,
that even with this assistance there
is no assurance that they would have
sufficient period in which to work
out the necessary conversion OF their
methods and it would be useless to
give to this group such governmental
assistance If it is to be only for pur-
poses OF immediate seizure by the
creditors
Such legislation therefore will be of
little avail unless arrangements have
been effected between the farmer and
his creditors, by the funding OF past
due Indebtedness and interest or by
similar means, so that the loans will
inure to the benefit of the farmer
himself, instead OF merely to the bene-
fit of his creditors. If such arrange
ments can be made, the farmer can be
given the opportunity to work his way
out of his present difficulties. II they
are not made it is difficult to see how
he can benefit from the plan,
In addition to Legislation OF this
character, coupled with the agree
ing to the refunding of past due in
debtedness, it is necessary to consider
whether any steps can be taken to
bring financial help to certain limited
areas of the Northwest in which en-
barras sments and failure among coun-
try banks have added to the hard
ships of the farmers. The War Fin
ance corporation is still functioning,
but its authority to make new loans
expires March 81 of this year. l rec
ommend that the Congress extend I'M
til December 81, 1924, the time dur
ing which loans can be made by the
corporation, and grant some extens-
ion of the period for which loans here
tofore made can be renewed.
Up to Business, Banks, Insurance
Companies and Others to Help
1t appears to me that it is essential
that the large business concerns such
as transportation, the more stable
hanl-e Ir1t IN, 1t
in adjoining states, who necessarily
benefit from the prosperity Of these
areas, should in their own interest ex-
tend very large measure of aid in
remedy of this situation, and that the
creditors even further afield, such as
our insurance companies and others,
should cooperate fully.
In those agricultural sections in
which numerous bank failures have
contributed to the distressful condit-
ions, it must be recognized. however.
that there is a distinct limit to the
scope of the assistance which the fed
erai government can render. Govern.
ment agencies can not properly make
loans upon insecure collateral. or to
banking institutions whose capital is
impaired In certain sections a more
drastic remedy may be necessary. 1t
many be necessary, on a we'll organ
lied and extensive scale. to provide
systematically for the restoration or
strengthening OF the capital resources
OF the country banks and financing
institutions necessary to the proper
service Of the farmer
New Financial Agencies May Be nee
esssry to Solve Problem
II may be found TO be advisable to
create new financing institutions. such
as have been organized with great sue
cess in the livestock territories to Co
operate with the War Finance CORPORA
ton. The government can not supply
banking capital nor can il organize
loan companies. but it can properly
call upon those large business con
Germs. the railroads, the mercantile
establishments, the agricultural sup
ply houses, and all those large bust
ness establishments whose welfare is
Immediately connected with the vel.
in their own interest. as well as in
the interest OF the country. to coop
crate with federal agencies in attack
ing the problem in large way. have
therefore directed the secretaries OF
Commerce and Agriculture and the
managing director OF the War Finance
corporation 10 confer with repre-
sentatives of the interested groups to
devise a practicable plan OF action.
The retunding the pressing past due
Indebtedness OF the farmer in the
territories most seriously affected.
financial assistance through a federal
agency to enable wheat farmers to
make the change from a single crop