Evening star., 1933-04-06
Farm Credit Consolidation
Raises Hopes of Efficiency

The several branches of Federal
financing in aid Of farmers, it is hoped
by the public, will gain efficiency
through the consolidation provided by
an executive order from President
Roosevelt. Unifcation of farm credit
agencies. with Henry Morgenthau, jr.,
Of New York, as chief, and termination
of the existence of the old Farm Board,
are viewed with favorable interest.
These agencies have been rather
confusing in their multiplicity" accord
ing to the Lincoln State Journal, which
holds that Government aid to agricul-
ture can be handled much more cheaply
than it has been, and things will be
more convenient for those depending
upon the Government for help" The
Springfield (Mass) Union suggests that
other haphaZard creations of the Gov
ernment in the past might profitably be
consolidated, with the elimination of
nom essentials as well as duplication ("
That paper adds: THE agencies to be
merged are the Farm Board, or at least
its stabilization corporations, the Fed
eral farm banks, the joint stock land
banks, the intermediate credit banks,
the Agricultural Credit Corporation
that Congress set up in connection with
the Reconstruction Finance Corporation
and two agencies Of the Department of
Agriculture-the Crop Production Loan
Bureau and the loan bureau to aid
local agricultural associations"
Important and economical action"
is seen by the Oshkosh Daily North
western, which points out that "unif-
cation would save approximately two
million dollars" The San Francisco
Chronicle declares that "the two mil
lion dollars Is the first earnest on the
promise of money to be saved made by
q long line Of Presidents" Advising
that "the ultimate saving cannot be
estimated at present" the PHILADELPHIA
Evening Bulletin finds deserved COM
mendation" for the Presidents action,
and says Of the problem that is now
presented: "Mr. Morgenthau has a
gigantic task, for the administration of
which he will need very considerable
machine. and yet it Is entirely possible
that In the reorganization there can be
a considerable saving of administrative
costs In the elimination of overlapping
offices and services. And that may be
accomplished without abandonment of
any actual service. The economies never
could have been effected by congress
stonal action"
1T Is an extremely interesting study"
thinks the Salt Lake Deseret News, 'to
see how the growth Of the farm popula-
tion consciousness In the last two
decades has Influenced political action
and gained for the farmers such credit
advantages. Moreover, it would ap-
pear that we are rather on the begin
ming than on the end of that important
political trend" In explanation of the
situation which has existed. the Deseret
News states: ITO do for the tillers of
the soil what the Federal Reserve svs-
tenn was doing for business the Federal
Farm Loan Board was organized i'm
1917, before the war. Under its SUPER
vision have been created II Federal
land banks and IL intermediate credit
banks. Each pair is in a district which.
incidentally, does not correspond to the
Federal Reserve district. The Federal
land and intermediate credit banks
were furnished capital by the Govern
ment. The land banks lend on farms at
low interest and for long terms, averag-
ing perhaps 35 years. The intermediate
credit banks lend ON agricultural prod
ucts for shorter terms, usually less than
year. Both were intended to be ulti-
mately cooperative, and the borrowers
have subscribed for stock. The land
banks have sold bonds and the inter-
mediate credit banks debentures to in
crease their loaning funds
Recording the fact that the order |
becomes effective within so days, the |
Baltimore Sun feels that 1t "sllould |
pave the way not only for the saving |
Of some administrative expense, but for
a better performance Of the general |
pnde<tA1D HpQn Yhtch this mitcels