Evening star., 1933-03-27
Consolidation.

Consolidation Of the agricultural
credit agencies Of the Federal Govern
msnt is to be the first step Of President
Roosevelt in the reorganization OF the
Government service. Five separate
agencies are to be included In the plan
10 unity these activities. the Federal
Farm Board, the Federal Land Banks,
the Joint Stock Land Banks, the Inter-
mediate Credit Banks and the Agricul-
tural Credit Corporation, set up by the
Reconstruction Finance Corporation.
In view Of the fact that all Of these
agencies deal with farm credits, there
seems no good reason why they should
not be consolidated and many reasons
why they should. President Roosevelt
hAS estimated that in addition to
bringing about more efficient govern
nnent, the unification of these services
Will result in an annual saving in Gov
Mnment expenditure for administration
q $4,000, 1000.
In its various attempts to come to the
cid Of the farmers Of the country the
Congress has at different times set up
new credit agencies for agriculture. The
result has been . patchwork system. It
u to get rid Of this patchwork, the re-
suit Of piecemeal legislation, that the
President Is now moving. The advo-
Gates Of each new move to extend
further credit to the farmers have in
the past insisted that . new agency of
administration be created, instead Of
giving new duties to earlier agricultural
credit agencies. Whether this was be-
cause Of pride Of authorship or because
It was deemed that old agencies could
not effectively handle the new duties Is
OF little avail. The result was to di-
versify governmental administration and
to add more and more persons to the
Government pay roll
The President Is soon to send to Con-
Sress . message and . bill to bring
about the reflnancing OF the mort
cages which are crushing the farmers.
The plan looks TO . reduction Of In
terest charges and to . scaling down Of
principal where that Il found to be
possible. The administration Of the
proposed farm mortgage law doubtless
will be placed under the direction Of
the new consolidated farm credits
agency.
This, the first executive order Of the
President in compliance with the econ
ou1y legislation enacted by the past and
the present Congress. IS awaited with
the keenest interest. It will be followed
scon, it is said, by other executive orders
drastically rearranging the Government
service. One Of them Is likely to be 4
consolidation Of those agencies dealing
With the problems Of transportation and
other methods Of communication. For
years there has been q demand that the
Federal service be reorsanised for two
purposes, greater efficiency and less cost
10 the taxpayers Of the country. When
the late President Harding took once,
. special committee of the Congress. on
which the administration was also
gfven representation, worked for months
On . plan Of reorganization. Former
President Hoover strongly urged upon
the Congress that he be authorized to
reoreaniSe the service Congress gave
Mr. Hoover meager degree Of authority
and promptly turned down what he pro-
posed In the way Of reorganization
under that grant Of power. To Presi-
dent Roosevelt, however, the Congress
has given full powers 1t will not be
IN position effectively to veto any of
the changes the President orders, since
1t would require 4 two-thirds vote In
both houses to override his disapproval
Of any measure seeking to curtail his
present powers Of reorganization.