Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-04
PRESIDENT URGES
DIRECT i. s. LOANS
TO WHEAT RA|SERS
Funds to Be Used to Diversity
Crops, He Says, Demand
ing Fullest cooperation.
REFUNDING OF ALL
DEBT is CONDITION
Blames Poor Banking, at Confer
ence, Rather Than Agricul-
ture, for Conditions.

President Coolidge. in an address
prepared for the opening today of
the special conference on north
western agriculture. outlined definite
proposals for government assistance
of wheat farmers.
Direct extension of federal funds,
as proposed in the pending Norbeck-
Burtness bill. to finance wheat grow
ers in attempting diversification Of
their crops, and continuance of ad-
vances through the War Finance Cor
poration to cooperative enterprises
and financial institutions in the farm
| ing regions were the methods sug-
gested.
Without cooperation between
state. local and federal governments.
he warned, help could not be made
effective. Likewise, he added, cretil-
tors of northwestern farming COM
munities must take concerted action
| for the refunding and extension of
| existing Indebtedness to make the
federal aid effective The confer
| ence, which is being attended by
representatives of industry. finance
and transportation as we'll as agri-
culture. included many leaders, he
said. who could work out the pro-
| gram necessary.
Text of Presidents Address.
! The President, outlinging 1.-THE
stepA which in my opinion the fed
eral government can properly take.
in cooperating with you, as its share
of the work to be done.' said:
First: The enactment of the Nor
beck Burtness bill providing an ap-
| ha q n I'm nj & q
| the Secretary of Agriculture and two
| additional commissioners, for the
| purpose of promoting the diversifi-
cation of agriculture in certain sec
! tions of the country, which hereto
| fore have been devoted primarily to
the production of wheat.
! Such a fund can be used to make
loans to wheat farmers to enable
| them to purchase live stock and poul-
| try. and thus equip their farms for
dairying and general farming. The
| fund should be used in a manner that
| is sound and that will accomplish eff
| fective betterments in directions APP
| proved by these most expert in the
agricultural problems involved. 1t
| should not be loaned to men who
have not the temperament, the ex-
| perience or the industry necessary
| for successful farming.
Predicated on Corporation.
| Moreover, government aid in this
connection must be predicated upon
full cooperation, along certain well
defined lines, of existing creditors OF
the farmers. 1t will serve no useful
purpose to lend money to a farmer
| who is in such position that at any
| moment mortgage holders and gen.
eral creditors can fall upon him, sell
his lands and seize his property.
Existing creditors. particularly the
mortgage companies, the insurance
| companies and the commercial and
| banking interests to whom the
| farmers of the northwest are so gen
| orally indebted, will readily see that
| as a condition of any advance of
funds from the federal treasury ar
| engagements must be made for the
| funding and extension of existing
| indebtedness for such time and upon
| such reasonable terms as Will give
promise that the farmer may work
out his future with the help of the
| funds advanced by the government.
VIII Adhere to Policy.
Second, it is proposed that the
| time during which the War Finance
| Corporation may make advances for
Agricultural purposes be extended to
the end of the present calendar year.
| The policy has been to make loans
where they would be helpful to the
| AGRICULTURAL and live stock interests,
but to make them on a sound bust
| ness basis and upon adequate secur-
! ity. This policy must be adhered to
in the future. The corporation can
not and should not make loans di-
should it purchase paper without re-
course from banks or other financial
| institutions. Its ability to function
effectively has been due. in large
n fo pf hot = I,
| sisted upon responsible financial in
| term ediaries, and that policy must
| not be abandoned.
| Limits to Federal Aid.
| I'm my message to the Congress l
stated that there are distinct limits
| to the scope of the assistance, which
the federal government can render.
These limits must not be overstepped.
1t was pointed out that government
agencies cannot properly make loans
| upon insecure collatal, or to banking
institutions whose capital is seriously
| impaired.
There have been severe losses to
! banking and commercial interests on
! account of the serious conditions pre-
! vailing in the northwestern states.
| Some of these losses doubtless can be
repaired, and further losses avoided,
!
/ lined is adhered to. But we must
| take no action that will make it pos
sible to transfer losses from private
interests to the public treasury. The
| object should be reconstruction, not
| charity, whether 1t is charity for the
| weak or for the strong. It should
be repeated, therefore, that the gov
| eminent should not be asked to take
over, without recourse, an insecure
or doubtful paper now held by banks
] or other creditors, or to make loans
| to enable farmers to liquidate exist
ing indebtedness 20 going institu-
| tons"
Proposes Lines Of Action.
| Suggesting that the conference
could profitably explore the posi-
bilities of action along the following
lines" the President continued:
| 'If the government. acting through
| the Department Of Agriculture, is to
| make its assistance effective in pro-
noting diversifcation of agriculture
| in the wheat sections, large degree
| Of cooperation from the local inter-
| ests, and specifically from the state
| and county farm and banking organi-
/ Continued on Page IA Column s.