Seward daily gateway., 1924-02-15
PLAN REZlEF FUR
 AL FiRINE,IS IF
 THE NORTHWEST
PRESIDENT COOLIDGE IN spE:- iAL MESSAGE, SAYS TIVE
 STEPS NECESSARY
a0NPT ACiION SOUGHT
GREAT NUMBERS OF FARMERS
 FLOODED BY DEBTS

 Five steps for the relief of the agri cultural situation in the Northwest l some to be taken by congress, some by the executive branch of the gov ernment and some by private inter ests, were outlined by President Cool idge in a special message to cong ress.
 The steps include:
 The refunding of the pressing past-due ind ahtedness of the farmer in the territories most seriously af- fected;
 Financial assistance through a fed eral agency to enable wheat farmers to make the change from single crop system to diversified farming;
 The restoration, wherever it would be helpful, of the impaired capital of banking institutions in the distress ing sections;
 The creation by private capital of substantial financing corporation to assist in the plan for reorganization;
 The extension of the time during which the War Finanut corporation can make loans
 MT. Coolidge told congress mat there were measures by which, without undue alarm or agitation. but, nevertheless, promptly and ef- fectively, we can bring to bear on a serious though, happily, localized em ergency, every source of the federal government and the assistance which the business and farming community can render"
 Acute Stage Reached.
 "The economic condition in cer- tain wheat growing sections of the Northwest" the president said at the outset Of his message, lis reaching an acute stage that requires organized cooperation on the part of the federal government ani the institutions of that territory Ter is solution"
 Calling attrrtioh 10 the mention he made to this situation Ill his message o congress in i'rc,nIber. he continu ed.
 Great numbers of il fividual farm e.s an so i2voived jl deLt, both on a"d TO rt' chants and to banks, llai they are Lrable to pres erve the equity of their property. They are unable to undertake the diversi- fication farming that is fundamental ly necessary for sound agricultural reconstruction of the area. They are unable to meet their obligations and there has been involved the entire [ and banking fabric of these regions.
 "Not only have there been large numbers of foreclosures on actual farms, but there are great numbers of farmers who are continuing in pos session on sufferance from their cred | itors
 Banks In Trouble.
 "There have been large and increas- ! ing bank failures. Bills have been in troduced providing for the lending by the federal government of moneys di- l, rectly to the farmers for purposes of ' assisting them in conversion of the farms on the basis of diversified farm Ing. I am heartily in favor of these bills, but they do not and will not com pass the entire problem.
 Many of the farmers are, how ever, in such jeopardy from their creditors that even with this assist ance 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 use ess to give to this group such gov assistance if it is to be on- y for purposes of immediate seizure )y the creditors.
 Such legislation therefore will be )f little avail unless arrangements nave been effected between the farm er and his creditors, by the funding of past-due indebtedness and interest )r by similar means, so that the loans will insure to the benefit of the farm er himself instead of merely to the benefit of his creditors. If such ar 'angements can be made, the farmer 'an be given the opportunity to work lis way out of the present difficult ies. If they are not made, it is diff icult to see how he can benefit from he plan.