Private Cooperation

A conference of agricultural, banking and industrial interests met in Washington at the call of the President. Mr. Coolidge appeared before the conference to make proposals for the "pressing agricultural needs of the Northwest" before" the Conference attacked the problem. He declared: "The principal purpose of this conference is to secure cooperation. Agriculture cannot stand alone. The banks cannot stand alone. A great amount of money has been spent to establish the population of the area affected. . .

"Difficulties exist there among some of the banks and on farms for which I wish to propose certain remedies. I do not intend to exclude other remedies. . . I am in favor of any sound measures of relief that can be devised. . .

"I shall state, however, the steps which in my opinion the Federal Government can properly take:

"First, the enactment of the Norbeck-Burtness bill providing an appropriation ... for the purpose of promoting the diversification of agriculture in certain sections of the country which heretofore have been devoted primarily to the production of wheat. Such a fund can be used to make loans to wheat farmers to enable them to purchase live stock and poultry, and thus equip their farms for dairying and general farming. I have submitted this legislation to the Congress. I do not know what action will be taken, but I propose to support it.

"Second, it is proposed that the time during which the War Finance Corporation may make advances for agricultural purposes be extended to the end of the present calendar year. The Corporation has made, during the past two years, advances to more than 4,300 country banks in the United States, as well as loans in large amounts to cooperative marketing associations and to live stock loan companies. The policy has been to make loans where they would be helpful to the agricultural and live stock industry, but to make them on a sound business basis and upon adequate security. . . We must take no action that will make it possible to transfer losses from private interests to the public this year. The object should be reconstruction, not charity, whether it is charity for the weak or for the strong."

The President suggested that the conference might aid the Government: 1) by appointing committees "to assist the Department of Agriculture in adopting its efforts to local conditions"; 2) by ascertaining some practical means by which agricultural indebtedness might be refunded along sound lines, so as to assist farmers and banks, essentially solvent, but pressed for credit.

Then the conference rolled up its sleeves and set to work. There was disagreement as to whether the Norbeck-Burtness bill and the extension of the powers of the War Finance Corporation would be of value, and no resolution approving them was passed.

But the conference did endorse a plan for a $10,000,000 corporation to be financed by private capital to aid in refunding farm debts. A committee of two Minneapolites, three Chicagoans and two New Yorkers was appointed to draft the charter of the corporation, which would make loans to sound banks in the agricultural area that are threatened by the emergency. Secretaries Mellon, Hoover and Wallace are to cooperate in the selection of committees to dispose of the capital stock.

A plan of action is under way at last. It remains to be seen whether it will prove successful.