Evening star., 1933-09-25
New Idea Worked Out in
Move to Increase Income
of Farmers.
INFLATED MONEY TAKES
MINOR ROLE AT PARLEY
New Line of Attack Evolved With
Plan to Free Idle Cash Dis
cussed at Length.
BY the Associated Press.

BY the Associated Press.
A new idea today stimulated Presi-
dent Roosevelt's campaign to provide
needed credit for N. r. A. industries
and raise the farmers income to the
price level of the things he must buy.
1t was evolved at a White House
conference attended by Mr.. Roosevelts
financial advisers, but none would dis
close the elements of the plans agreed
upon Secretaries Woodin and Wallace
and Attorney General Cummings head
ed the group that gathered in the
Presidents study last night. exchanged
notes and then worked out the new line
Of attack.
With the increase in farm prices
tagging still behind the cost of COM
modities the farmer must have, 1t was
indicated that methods of releasing
funds in the closed State and national
banks of rural communities furnished
an important topic of the White House
discussion.
Reviewed in Detail
Behind this lay the weeks-old prob
lem OF inducing the banks to extend
loans to commercial enterprises oper-
ating under the Blue Eagle. The whole
subject was reviewed in detail, with the
result that the administration. in ef-
feet, today told the bankers that the
Government billions were ready to
help banks give the industries of their
communities the credit needed to in
crease employment
So far as last nights conference was
concerned, those attending said infla-
ton OF the currency was hardly dis
cuSsed. One of them emphasized that
the greenback method of increasing
money in circulation had no part in
MI. Roosevelts present plan.
The President has the authority to
issue United States notes backed by
Government bonds Other possible
clude reduction of the dollars gold con-
tent and the coming of silver
1t was learned authoritatively that
the late night gatherings discussed at
length the coordination of four prime
Federal agencies into a systematic plan
intended to release deposits tied up in
closed banks and place banks already
operating upon sound basis.
Would Purchase Stock.
Under this scheme the Reconstruct
habilitate banks capital structure bv
purchasing new issues of preferred
stock; the Farm Credit and Home Loan
Administrations would replace slow real
estate mortgage assets with their readily
saleable bonds. and the Deposit Guar
anty Corporation would guarantee the
funds of new depositors
new drive for imitation to help
boost farm prices was opened today
by representatives of farm organiza-
tons. supplementing that undertaken
last week by legislators and other repre-
sentatives Of Southern cotton growers
EDWARD A. O'Neal. president of the
American Farm Bureau Federation, led
delegation which included representa-
tlves of cooperative organizations and
grain. live stock. and dairy farmers in
a call on Secretary Wallace at noon.
The program then was placed be-
fore President Roosevelt.
Afterward O'Neal said:
We found the President very CO.
operative"
ONeal previously had told news
paper men. after the group called on
Secretary Wallace. that the delegation
favored imitation without delay to
help the farmers get fair prices
Farmers do not ask for Cheap
AtoA4os' tlie SlOup SdlQ III lOrfndl
statement after calling on the Pres;-
dent. but they do protest against the
unfairness and continued injustice of
dear money. and they do demand
honest money so that in the words
of President Roosevelt those who
have borrowed will. on the average.
be able to repay that money in tn,
same kind of money which they bor-
rowed.'"
Wallace's Uncle in Group.
The group included Dan Wallace, st.
Paul farm editor, who is Secretary
Wallace's uncle; Charles Ewing, Chi
cago, head of national live stock CO.
operative association: Charles Holman,
Washington. secretary of a national Or
ganization of cooperative dairy pro-
ducers and professors: Don Geyer, sec
retary of the Pure Milk Association of
Chicago, and C. E. Huff. president of
the Farmers National Grain Corpora
ton. Chicago
ONeal told reporters the delegation
believed imitation without delay was
necessary to help the farmers get fair
prices" He also said the group de-
sired more adequate representation in
the councils of the A. A. A. in the same
way labor was being given an oppor-
tunity to formulate policies for the
N. R. A
Later the group will confer with
Gov. Henry Morgenthau, jr.. of the
Continued on Page 4. Column %
-uanAlrn or-4 aaAnu/