The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-01-24
COOLIDGE Bees
FOR BANKS THAT
ROB F AR M ( R S
Would Help Growers
by Helping Banks

eAOHS VI Jllt NOIbUWbSI.
THE economic situation in certain
wheat growing sections Of the North
west is reaching an acute stage that
requires organized cooperation on
the part of the Federal Govern
ment and the local institutions of
that territory for its solution" the
President said.
Mr.. Coolidge recommended as
remedial measures:
1.-The refunding of ''the press
ing past due indebtedness Of the
farmer in the territory most seriously
affected.
Financial assistance thru a
federal agency to enable wheat
farmers to make change from a
single crop system to diversified
farming.
Asks Aid for Banks.
Restoration, wherever it
would be helpful, of the impaired
capital of banking institutions in the
distressed sections.
4.-"Creation by private capital
Of substantial financing corpora
ton to assist in the plan Of bank re-
organizations"
5.-Extension until December 81.
1924, Of the power Of the War Fin
ance Corporation to make loans This
power expires March 81.
The President pointed out some
arrangement must be made that will
insure money loaned by the govern
ment reaching the farmers and not
being swallowed up Immediately by
their creditors, the banks.
soans of that sore will not help the
farmers particle, he said.
He urged business in the region
affected, including merchant insur-
ance companies and the like, to CO.
operate in every way to help the
farmer. Discussing the situation con-
fronting wheat farmers, the Presi-
dent said:
"Great numbers of Individual
farmers were so involved in debt,
both on mortgages and to merchants
and banks that they are unable to
preserve the equity of their proper
critics. They are unable to undertake
the diversifcation of farming that
is fundamentally necessary for sound
agricultural reconstruction of the
area. They are unable TO meet their
obligation End thereby has been in
volved the entire mercantile and
banking fabric Of these regions.
Tells Of Bank Failures.
mot only have .nere been large
numbers of forecl ,s1res on actu4'
farms, but there ere grea mum GERS
possession on sufference from their
Of farmers who are continuing in
creditors. There have been large
and increasing bank failures. Bills
have been introduced providing for
the lending by the Federal Govern
ment Of monies directly to the farm
ers for purposes of assisting them in
conversion of their farms on the
basis of diversified farming. | am
heartily in favor of these bills, but
they do not and will not compass the
entire problem"
After pointing out the need for
private as well as government agen-
cies 10 assist the sufferer, Mr.. Cool
idge stated:
1T may be necessary, on a we'll
organized and extensive scale, to pro-
vide systematically for the restora-
ton or strengthening Of the capital
resources of the country banks and
financing institutions necessary to
the proper service of the farmers.
ut may be found to be advisable
to create new financing institutions,
such as have been organized with
great success in the livestock terri
tories, to cooperate with the War
Finance Corporation.
Wants Railroads to Help.
"The government cannot SUPPLY
banking capital nor can It organize
loan companies, but it can properly
call upon those large business con-
Germs, the railroads, the mercantile
establishments, the agricultural sup
Fly house and all those large bust
ness establishments whose welfare il
Immediately connected with the well
fare Of the farmer.
1T can ask them, in their own in
terest as well as in the interest of the
country, to cooperate with federal
agencies in attacking the problem in
a large way.
! have therefore directed the sec
retaries of commerce and agriculture
and the managing director Of the
War Finance Corporation to confer
with representatives Of the interested
groups, to devise practicable plan
of action.
"They are measures by which,
without due alarm or agitation, but
promptly and effectively,
We can bring to bear on a serious
tho happily a localized emergency
every resource Of the federal gov
eminent and all the assistance which
the business and farming community
cea render