Evening star., 1924-01-23
COOLIDGE MESSAGE
. REQUESTS 5STEPS
TO HELP FARMERS
Northwest Agricultural Crisis
Demands Quick Action,
Congress Is Told.
FAV0RS FINANCIAL AID
FROM u. S. TREASURY
Executive Also Tells Legislators
Banks Need Assistance to Tide
Over Situation.

Over Situation.
Five steps for the relief of the
agricultural situation in the north
west, some to be taken by Congress,
some by the executive branch of the
government and some by private in
terests, were outlined by President
Coolidge today in a special message
ito Congress.
The steps include:
The refunding of 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 system to diversified
farming.
Aid Banking Houses.
The restoration, wherever it would
be helpful, of the impaired capital of
banking institutions in the distressed
1sections.
The creation by private capital of
substantial financing corporation
to assist in the plan OF reorganiza-
ton
The extension of the time during
Whlcn the war FINANCE Corporation
can make loans.
Mr.. Coolidge told Congress that
these were measures "by which. with
out undue alarm or agitation. but
nevertheless promptly and effective
ly, we can bring to bear on a serious
though, happily. a localized emer-
gency. every resource of the federal
government. and all the assistance
which the business and farming COM
munity can render"
Organized Relief Needed.
The economic situation in certain
wheat growing sections of the north
west" the President said at the out
set Of his message, "is reaching an
acute stage, that requires organized
cooperation on the part of the fed
eral government and the local institu-
ftions of that territory for it's solu-
ton"
Calling attention TO the mention
he made of this situation in his mes
sage to Congress in December. he
continued:
Great numbers of individual farm
ers are so involved in debt, both on
mortgages and to merchants and
banks, that they are unable to pre-
serve the equity of their property
They are unable to undertake the
,iiversification of farming that is
Fundamentally necessary for sound
agricultural reconstruction of the
area. They are unable to meet their
obligations, and thereby has been in
vowed the entire mercantile and
banking fabric of these regions.
Many Foreclosures.
"Not only have there been large
numbers Of foreclosures actual
farms, but there are great numbers
Of farmers who are continuing in
possession on sufferance from their
:, creditors.
There have been large and in
creasing bank failures. Bills have
been introduced providing for the
lending 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 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
a 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 1T is to be only for pur-
poses of immediate seizure by the
creditors.
Funding Past Due Debts.
Such legislation, therefore, will
he of little avail unless arrangements
have been effected between the farm
er 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
Mariner himself, instead of merely to
the benefit of his creditors
If such arrangements can be made
the farmer can be given the oppor-
tunity to work his way. out of the
present difficulties. If 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
ments which l have mentioned look
ing to the refunding of past due in
debtedness, 1t is necessary to con-
slider whether any steps can be taken
tied areas of the northwest in which
embarassments and failures among
country banks have added to the
hardships of the farmers
still functioning. but it's authority to
make new loans expires March 81 of
this year, year rec, recommend m that Con-
the time during which loans can be
made by the corporation, and grant
some extension of the period for
which loans heretofore made can be
renewed
General Aid Advfsed.
} 1T appears to me that it is essen
'tial that the large business concerns.
such as transportation, the more
stable banks. not only in this terri
tory, but in adjoining states, who
necessarily benefit from the prosper
ity of these areas, should in their own
':Gterest extend a very large measure
OF aid in remedy of this situation,
and that creditors even farther 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 condi-
lions it must be recognized how
ever. that there is a distinct limit
TO the scope of the assistance which
the federal government can render.
Government agencies cannot properly
make loans upon insecure collateral,
or to banking institutions whose
capital Is impaired. In certain sec
Tions a more drastic remedy may be
NeceSsary.
sz"It may be necessary, on a well or
gani1ed and extensive scale, to pro-
eide systematically for the restora-
TOoc D