Jasper County Democrat, Volume 23, Number 76, Rensselaer, Jasper County, 18 December 1920 — WAR FINANCE CORPORATION [ARTICLE]

WAR FINANCE CORPORATION

The senate did not seem the day after to be much impressed with the wisdom of its resolution asking for a revival of the war finance corporation in the interest of the farmers. As was suggested yesterday, there does not in truth seem to be much that is constructive about it. Indeed, certain senators # are fearful that it may be destructive, since it may, serve as a precedent that will prove annoying, at least, if other interests should demand state help But the wisest comment on the resolution is that of Senator Nelson of Minnesota. He said that, though the war finance corporation could, if rewived, supply money, it could not change the price of crops or give the farmers a better market. Here is his view: To get better markets we must have a greater demand from abroad. In this country we raise a surplus of agricultural products; our production is much greater than our consumption; we have to get rid of that surplus, and in order to get rid of that surplus we must sell it to advantage to other countries. With the exception of two crops produced in the United States, namely cotton and corn, we come into competition with all the world. There can he no foreign pjarket till law and order are restored in European countries, and they are put In a position where they can buy our products. “They are," said the sen-

ator, "hard up today,” with no money or credit, and also with a shortage of goods to exchange for our products. None of these things is touched by the senate resolution, and very naturally Senator Nelson feared that it “might prove a disappointment." That is, we think, quite likely. The war finance corporation was devised for the purpose, not of finding markets or establishing prices, but of financing, as far as might be found advisable, establishments engaged in the production or Importation of war materials.

It could advance money to the fanners, but it could not affect the price of crops, as Senator Nelson points out, or solve the problem of markets. Nor would the high duties that are suggested help In any way, since they would tend to shut the farmers up to the already saturated home market, an<J make it still more difficult for foreigners to buy of us. There are Indications that the situation is gradually curing itself. Fresh strength in the wheat market, with advancing prices, was noted in Chicago yesterday, owing, it is said, to the belief that “the period of liquidation in grain was at an end.” Export demands are increasing, and only 15,000,000 bushels of the visible supply is to be found at western tSr minals. Whatever we can do to improve world conditions will *be directly in the interest of the American farmer. Finally, it should be said for Senator Nelson that he realizes the seriousness of the situation, is entirely sympathetic, and prepared to do all that can be done to affcflrd relief.—lndianapolis News.