The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-05-03

expense of the taxpayers, and the
farmer would not get the expected
benefits.
Predictions Fulfilled.
'"This is exactly what happened
when the succeeding adlninisti,a-
tiOn, in August, 1921, extended the
powers of the War Finance Cor
pOratiOn, and authorized it also to
use billion dollars in loans for
the relief of the farmer. it is CON-
corning the distribution of this
relief fund that Pomona Grange
of Idaho, recently demanded a
Congressional investigation, and
asked that farmers of other States
be advised of the facts. With. this
proposal to use a billion dOllacs
for direct farm loan relief, coming
after the Wilson administration,
OF course Secretary Houston had
nothing to do; nevertheless he
would not have opposed such u
measure.
"But in the actual working out
OF the financing of exports, Sec
rotary HoustOn's predictions were
fulfilled with astonishing exact
ness. False hopes were raised.
The War Finance Corporations
loans during 1922 TO cooperative
marketing associations amounted
to only $5,20O,OOO, while exporters
obtained $9,733,OOO and bankers
$4S,379,O0O of the funds to finance
exports. Total agricultural ex-
ports alone for the year 1929
amounted to 81 ,883,00O,O0O.
secretary Houston was equally
clear.visiOned in predicting failure
of higher tariff rates to relieve
wheat farmers and agricuIturists
in general. On his recommended
ton President Wilson vetoed the
Emergency Tariff act, March 3,
1921. declaring that the situation
in which many of the farmers of
the country find themselves can.
not be remedied by a measure Of
this Sort
Price Drop Worldwide
There was a time i'm 1920 and
1871 when some misinfOrmed
critics held Secretary of the Treas.
ury Houston responsible for defla-
ton OF farm prices through the
policies of the Federal Reserve
Board. The joint Senate and
House Committee on the agricuI.
tural inquiry of 1921, established
concIusively, and Senator Glass
supported their conclusion, that
the Federal Reserve system, under
Secretary of the Treasury HOus
ton, expanded agricultural credits
TO nearly three times their volume
of 1919.
at is also now known that the
fall Of prices in the spring and
summer OF 1920 was worldwide:
that the farmers of Australia,
Canada, Great Britain, and else
where suffered from a similar de.
cline, and that no banking action
OF any sort constituted any part
OF the forces causing such de.
clines. 1t is further now known
that the failure of the foreign
demandWaS the controlling factor.
The new administration aggra.
waited the situation, as Secretary
Houston predicted it would, not
only by failing to cooperate for
the restoration of EurOpe's prO.
ductfOn, but also by imposing a
high tariff on manufacturers
prOducts-which tended to restrict
trade and which raised the prices
of things the farmer had to buy.
INITIATED MANY REFORMS.
Have the farmers overlooked
the fact that David F. Houston
initiated and carried into effect
more constructive reforms during
his seven years as head OF the
Department of Agriculture than
have marked all the other years
OF its history? The great forward
steps in the department which
nave contributed so largely to
agricultural betterment during
our generation were taken under
Secretary HOustOn's leadership
and were made possible by his
vision and dominating persistence.
This roll of honor includes the
following achievements:
Complete reorganization of the
Department of Agriculture to
make its activities fit the farmers
needs.
"Fhe first systematic provision
for Government assistance to tile
farmers in \ the solution of their
marketing problems through crca.
ton of the office of markets
Mr.. Houston recognized that the
farmers most difficult problems
are in this field.
cooperative agricultural ex.
tension act, by which farm dem.
OnStratiOn and home economies
education is carried into the re.
hottest counties through 5000 per.
sons now employed in this service
alone: This was the most far.
reaching measure of education fOt.
adults ever adopted by any gov.
eminent.
Farmers suffered from having
no liked standards for grain and
cotton crops. The grain standards
act and the cotton futures act
nave regulated cotton exchange
transactions and enable farmers to
OBTAIN payment for the quality of
grain they deliver.
Lack Of warehOusing facilities
unsOld crops.
FEDERAL HIGHWAY AID.
"The Federal aid road act made
possible the good roads of today.
When Secretary Houston proposed
Federal aid and cooperation with
State agencies only six States
had central highway commissions.
and road Improvement was han.
hazard and very crude. Under
this act the Federal Government
has appropriated nearly $500 900.
900 and the States have been
stimulated to put up much more.
The result has been 26,5O0 miles
of highway completed up to 1923,
and $4,000 miles at least so per
cent completed.
"The Federal farm loan act in.
trOduced business methods into
farm financing and gave the
farmers mortgage banks from
which they can borrow at less
cost and under fairer conditions,
"NOna Of the Vnaa aupV.oe x,,I,soV,