The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-02-03

Washington, D. c., Feb. 3.-Fol-
lowing is resume Of the Agricul
turc Commissions report:
mo discussion Of the agricultural
problem would be complete without
consideration of the banking pro-
blem in the agricultural districts,
for, as the President so aptly said,
"The difficulties of agriculture, and
the difficulties of the banking insti-
buttons in the agricultural districts,
arise, to some extent at least, from
common causes"
"Thc banking. problem so far as
agriculture is concerned, cannot be
approached from an exclusively fed
eral point Of view. The national
banking system and the federal re-
serve system leave outside of those
systems-under state supervision and
control and operating independently
approximately two-thirds of the
banks. This conference deems it
necessary to call attention to some
Of the problems involved in the hope
that they will receive consideration y
There are around 10000 banks in
the United States. About one-fourth
are national banks and the remainder
state. OF the state banks, about TO-
900 are ineligible to join the Federal
Reserve system. Figures compiled
recently indicate that nearly 1000
are eligible and that only about
1850 of these are members. This
leaves large number of banks en-
serve System and results in a divid-
ed system of banking, with conse-
quent weakness to the nations cred
it structure.
"The conference can not indicate
the way by which the federal govern
ment can cure difficulties created by
certain state banking laws, but il
cannot, on the other hand, fail to
point out the resulting difficulties
for agriculture. The problem is sc
big and so important that the con
ference feels it merits the active in
terest and thorough consideration or
the part of the state authorities and
particularly of the agricultural in
terests. A business can not be con.
sidered strong and sound if the
banking structure that serves it is
weak and unsOund, and it must be
admitted that this is unfortunately
the case in very large agricultural
areas at present.
ut is apparent the country lacks
unified credit system and thai
such system can only be develop
ed by a federal banking policy which
will draw eligible on-members into
membership in unified nationa
banking system. The conference de-
sires to raise the question why state
banks do not become members of thu
Federal Reserve system in larger
numbers and what situation in Law
or administration restricts the de-
ve1opment of the necessary banking
principles for the safety and stabili
ty of agriculture and industry.
s'The Federal intermediate credi
banks were created by Congress tt
extend assistance to the agricultural
interests through banks, livestock
losn companies and cooperative mar
keting associations. The lack o.
proper support by the intermediate
credit banks for the livestock in
dustry has been fully discussed il
the conferer<e report on livestock
II. should be further stated, however
that a similar situation has existet
on the part of certain Of the Inter
mediate credit banks in extension o.
credit to their local cooperative mar
ketinR organizations and the same
aggressive steps should now be tax
en- ~ the federal Farm Loan board t.
open to them the proper lines q
credit. n y
Pl1mt And Anisial Quarantine
sSacnrity Of American agriculture
from ths, invasion df foreign dis
,sas3s md pests and the protection q
fcdifure Against diseases .an}