Evening Republican, Volume 23, Number 288, Rensselaer, Jasper County, 3 December 1920 — GOVERNORS ACT TO AID FARMERS [ARTICLE]

GOVERNORS ACT TO AID FARMERS

ASK U. S. LOANS TO FOREIGN COUNTRIES AS BOON TO EXPORTS. s \ t J Harrisburg, Pa., Dec. 2.—The Governors’ conference today adopted a committee report urging the Federal government to create a finance corporation, which, through loans to foreign countries, will permit export of American foodstuffs and other products to relieve the critical situation confronting the nation’s farmers. The report further urged the Federal reserve board to advise all banks to adopt a liberal policy of renewals on farmer’s indebtedness. The action was taken on the recommendation of a committee of five Governors, appointed yesterday, who presented the following report: “The “financial situation in the whole country is cause,for-the gravest concerp but not for despair. All lines of business are realizing heavy losses but the swift decline of prices of farm commodities to far below the cost of production threatens a national patience and forebearance and supreme wisdom and courage. Nothing but evil can result from anger or fear. Suggest Remedies. “We believe that the tenseness of the situation can be relieved in several ways: “1. Let every individual do all he can to help and encourage his neighbor; let there be a complete mobilization of the and spiritual assets of every community. Neither Sod nor the government ought to lie asked to help those who do not first make every eflfort possible -to help themselves. There ought tb be a united effort in every community to keep any good man from being destroyed because he can not immediately meet his obligations. Under existing conditions it would be the acme of inhumanity and of unwisdom to force any debtor into bankruptcy if by the most liberal indulgence he would be ultimately able to pay. Business failures do more than wreck business; they ofttimes destroy man. Urge Liberal Indulgences.

“Liberal indulgences and renewals should be granted by the manufacturers to the jobbers, by the jobbers to the merchants, by the merchants to the individuals. It is not time for a creditor to seize his debtor by the throat and savagely say ‘Pay me what thou ©west I* “2. Let the Federal government create a financial corporation of some sort that will enable the people of other lands to obtain from us the commodities they so greatly need but for which they are not able to make immediate payment. “3. The Federal reserve board should be urged to allow all to adopt a liberal policy of renewals. The laws authorizing six months’ credit on foreign paper should be liberaly construed and renewals for a like period should •be freely granted wherever consistent with other solvency. The real wealth of the country is unimpaired. It would be a suicide policy to destroy this wealth by a preemptory call of oans.” The Honorables James E. Goodrich and Warren T. McCray, governor and governor-elect, respectivey, of Indiana, were in attendance at his important ‘ conferen.ce of the executives of the United States held at Harrisburg.