The Birmingham age-herald., 1924-01-24
Sends Special Message To Congress With Plans For Relief Of Institutions
 In Northwest
FEDERAL FINANCIAL { ASSISTANCE URGED
Favors Refunding Of Pressing Past Due Indebtedness
 Of Farmers
SUGGESTS RESTORATION
 OF IMPAIRED CAPITAL
Recommends A Private Financ- ing Corporation To
 Assist Plans

WASHINGTON, Jan. 2s.-Moved by the increased acuteness of the economic situation in itheI northwest, President Coolidge today sent to Con- gress special message outlining steps for relief and quickened efforts of the federal government b prevent further bank failures in that section.
 The chief executive in his message presented five methods for organized cooperation on the part of the federal government and the local institutions of that territory.
 Congress, he declared, should extend financial assistance through federal agency to promote diversification in farming by the wheat growers and lengthen from March 31 to December s1, 1924, the period during which the war finance corporation may make loans. The diversification proposal embodied in the Norbeck- -Burtness bill is under study by Senate and House agriculture committees and the Presi- dents message is expected by adminis- tration leaders to give it impetus. .s Would Refund Debt
 The executive branches of the govern ment working in cooperation with pri- vate interests, Mir. Coolidge asserted, would seek to bring about the refunding of the pressing past due indebted ness of the farmers, to restore the i'm pared capital of the banks and conf b,,~ ~Ir~H l~ creation of private capital of new financing agencies such as have been organized by the live stock raisers, to finanye corporation, A
 The work of restoring, the impared capital of banks already had been start ed win the sending pf q federal n1fasion headed by Comptroller Dawes to the northwest. The President conferred on this problem today with w. R. Ronald, publisher of the Mitchell, South Da- kota, Tribune, who was told the situa- tion calls only for assistance through the usual banking channels and the finance corporation. f
 The President told Congress the well fare of the large business concerns, rail- roads, mercantile establishments and agricultural supply house was included with the welfare of the frGmers and an nounced that he had directed Secre- taries Hoover and Wallace and Manag- ing Director Mayer of the war finance corporation to confer with representa- tives of these interests to bring about a refunding of farmers indebtedness.
 No Reaction
 Reading of the Presidents message fin the Senate and House brought no i'm mediate reaction except discussion of Senator Brookhart, republican, Iowa, that he had pointed out six months ago the coming of such a situation as now existed. Administration leaders, how ever, expressed the view that the mes sage would hasten action on agriculture legislation.
 The steps include.
 !, The refunding of the pressing past due indebtedness of the farmer in the territories most seriously affected.
 Financial assistance through a fed. eral agency to enable wheat farmers to make the change from q single crop system to diversified farming. f
 The restoration wherever it would be helpful of the impaired capital of bank. ing institutions in the distressed sec. ton.
 The creation by private capital of a substantial financing corporation to as sist in the plan of reorganization.
 The extension of the time during which the war finance corporation can make loans.