Evening star., 1924-04-05
F|NANC|ERSASKED
To GIVE FARM AID
DENIED BY SENATE
President Requests AgricuI-
turaI Credit Corporation to
Help Wheat Growers.
BELIEVES U. S. FUNDS
MAY BE HAD INDIRECTLY
War Finance Money Available for
Rest of Year-Need of Crop
Diversifcation Stressed.

President Coolidge today asked the
recently organized Agricultural Credit
Corporation to undertake in co-opera-
tion with the War Finance Corpora
tion the extension of credit to north
western wheat growers for farm di-
verSification.
The request was embodied in a let
ter to c. T. Jaffray of Minneapolis,
chairman of the board of directors of
the Agricultural Credit Corporation.
which was organized by eastern and
middle western financial interests
with a capitalization of SO, 0,o0O, 900 as
result of the February conference
here on the northwest farm situation.
The President declared such a step
should be taken because of the Sen
ate defeat of the Norbeck- -Burtness
bill providing for loans TO wheat
farmers to enable them to purchase
live stock and poultry. and added
that he knew of mo more effective
service that could be rendered TO the
agricultural interests of the central
northwest"
Text of Letter.
The Presidents letter said:
AT the conference held in Wash
inSton early in February in connec-
ton with the agricultural situatio on
in the northwest, one of the impor-
tant questions considered was the
movement toward diversified farming
in areas OF the northwest which have
in the past been devoted mainly to
wheat growing. In my address to
the conference, / refer rred to the
Norbeck- -Burtness bill. then pending
in the Congress- which roDriated
a fund TO be used by the Department
OF Agriculture in making loans to
purchase live stock and poultry and
thus equip their farms for dalryinc
and general farming.
Il suggested that such fund could
be administered in sound and effeC-
tive manner, if coupled with a gem
eral program OF refunding and ex-
tension of overdue indebtedness The
Norbeck- -Burtness bill, however, has
failed of passage in the Senate, and
it is thus apparent that relief along
these lines cannot be expected.
I'm my address to the conference
1 sugge Sted also that the conference
consider what steps the financial.
industrial and agricultural interests
represented could properly take to
render material and effective assist
ance in the emergency. In response
to this suggestion the Agricultural
Credit Corporation was organized l
am informed that the capital stock
of the corporation to the amount of
$4,000, 900 has been subscribed by
business interests throughout the
United States, and it has been graft
flying to me to note the public
spirited manner in which these in
terests have come to the aid of the
"Sinca the defeat Of the Norbeck-
Burtness bill 1 have been consider
ing what other steps the federal gov
eminent can take to aid in the move
ment toward diversified farming in
the northwest I recommended in my
address to the conference, and in a
previous address to the Congress, that
the time during which the War
Finance Corporation may make ad-
vances for agricultural purposes be
extended until the end of the present
calendar year.
Could Secure Loans.
"a resolution granting such IN ex-
tension has since become law. The
War Finance Corporation, however,
cannot make direct loans to farmers
1t can act only through responsible
financial Intermediates. The ques-
ton has arisen, therefore, whether it
WoUlu not De anu " lLuli
the general purpose of its organiza-
tion, to have the Agricultural Credit
Corporation undertake, along sound
and effective lines, some of the work
which l had hoped the Department of
Agriculture would be permitted to un-
dertake under the Norbeck-Burtne ess
bill.
II know of no more effective service
that could be rendered to the agricul-
tural interests of the central north
west. Where a farmer proves himself
to be competent and Industrious, and
willing to undertake the added re-
sponsibility and labor incident to
diversified farming, it should be pos
Sible for him to obtain the funds and
the practical assistance necessary to
enable him to purchase livestock and
thus make start toward diversified
ton. If such program is Soundly
administered, it should be posi- BILE
to make loans of this character upon
sound security and without undue
financial risk. In connection with
business of this kind, moreover, your
corporation would, ] am informed, be
legally eligible to make legal ap-
plication to the War Finance Corpora
ton for loans in substantial amounts.
II would appreciate it if you would
advise me whether or not in your
opinion, and in the opinion of your
board of directors, it will be prac-
ticable for your corporation to under
take in cooperation with the War
Finance Corporation, and along sound
and conservative lines, a substantial
amount of business of the character
which L have outlined in this letter.