The Nonpartisan Leader Newspaper, December 27, 1920, Page 4

'CONGRESS AND THE FARMER Politicians Fear Power of Organized Producers—Must Relleve Agncultural BY E. B. FUSSELL ONGRESS has given the American farmer the cold shoulder for years. Not since the federal land banks were established, more than four years ago, bas the farmer secured an important piece of legislation, and the farm loan banks have been allowed to go out of business for lack of aid which congress could have given them. But it appears, at last, that congress has dis- covered that there are farmers in the United States and that they need immediate help. Some form of relief is probable from the present session of con- . gress, which convened December 6. There are two reasons for expecting favorable action. One reason is that Nonpartisan league can- didates for governor in nine states polled a total vote of more than 1,200,000 at the Novem- - ber election, as is told on the next page in this issue of the Leader. The other reason is that the ruin of the cot- ton and wheat growers threatens to involve banking and business interests throughout the West and Seouth, if it is not stopped immediate! One of the oldest stories in the world a story abeut farmers, illustrates the smla- tion of today. This story, a famous old fable, is about . a family of larks that nested in a farmer’s wheat field. One night, after the old birds had returned from a day’s foraging, the young lark that had been left at home in the nest, told its parents that they had better get ready to move. " “The farmer and his son were here to- day,” said the young lark. “The farmer said, ‘This wheat is ready to be harvested. Go out to our neighbors and get them to help us harvest it.” ? “Never mind,” said the old larks, “we von’t have to move yet.” No harvesters appeared to molest the larks. But two or three days later the young lark reported to the old omes that- they had better get ready to move. “The farmer and his son were here again today,” said the young lark. “The farmer said, ‘Since our ‘neighbors "haven’t come to help us harvest this wheat, you must go to our relatives and ask them to help us harvest it?” “Never mind,” said the old larks, “we won’t have to move yet.” Again no harvesters appeared and the larks were left unmolested. But two or three days later the young lark reported - to the old ones: FARMERS AT LAST ARE SPEAKING FOR-THEMSELVES “The farmer and his som were here again. The farmer said, ‘Since neither our neighbors nor our relatives-have come to help us harvest this wheat, get the scythe and sharpen it.- We will start to harvest this wheat ‘ourselves tomorrow.”” . “Oho,” said the old larks, NOW it is time for us to move‘” . That farmers are at last ahout to get some form of remedial action is due to the fact that they have quit depending upon their neighbors and relatives and are out to take action by themselves. Senators and representatives from the West, ar- : _ riving at Washington preliminary to the opemng' of * the session of congress, ware of one voice in de- manding that something must be done and done im- mediately. They pointed out that in spite of the national Republican landslide the Nonpartisan . league had polled a record wote, its candidates for governor in Minnesota and Was}ungton, running independently, polling respectively 35 and 30 per cent of the total votes of these states; that in Colo- rado and Montana, where League candidates for governor were on the Democratic ticket, they had run thousands of votes ahead of the Democratic candidate for president and that the protests of the cians, says Baer. Conditions to Help Bankers farmers against unfair conditions were growmg in-- stead of lessening. Senators and representatlves from the South re- - ported that the ruin of the cotton farmers in their sections threatened to involve the whole business world and that wholesale bank failures in Okla- homa threatened to betorme general throughout the southern states unless 1mmed1ate aid could be se- cured. Tn both the West and South bank failures, re- ported from a dozen states, including North Dakota, Oklahoma, Kansas, Colorado and Iowa, were traced directly to the farmers’ “holding movement” in wheat and cotton. As Congressman John M. Baer of North Dakota pointed out, the failure of one bank creates more attention in the business world than the failure of a thougand farmers. The fact that farmers refused to sell their products at less than the cost of production meant that the banks could not secure needed money. It also meant a sharp reduction in the values of farm lands, on which banks had made large loans. Bankers and l THE RUSH FOR SAFETY ‘ I ey "Wt.uow NUNP&\RTISAN LE-"‘(" T\ The tidal wave of farmer protest threatens to engulf the petty polm- They have forgotten the farmer too long; now they must at least make a gesture of giving aid. business interests in the Souwth and West, seeing their own ruin threatened, along with the farmers," added their demands for relief. _The natural result was a non'partxsan combi- nation in both houses of congress, of western Republicans and seuthern Democrats, to secure some form of immediate relief for the agricul- tural industry. As the ticker service of the grain exchange car- ried the news of the organization of this combina- tion, beginning about two weeks before congress cohvened, the price of wheat went up day by day on the Chicago and Minneapolis markets, making an advance of more than 20 cents from a low point of $1.40 to $1.62. : . The senate committee on agriculture was assem- bled in informal session before congress convened - and determined to revive the War Finance corpora- tion, which by extending credit to southern cotton - - growers had saved them from complete ruin durmg' the war.. But while the nonpartisan combination of west- .‘ ern Republicans and southern Democrats was husy, ‘PAGE FOUR )“ E .(o"‘u attempting to get some form-of relief for the farm- ers (and bankers) of their sections, another non- partisan combination also was being formed.” This ‘was composed of Democrats and Republicans from states on the Atlantic seaboard, who were willing to have the War Finance corporation revived to help eastern manufacturers finance export busmess, but not to give any relief to the farmers. This nonpartisan combination showed its hand December 7, the day after congress had convened. The senate committee on agriculture reported its resolution to revive the War Finance ‘corporation. To take up. a resolution: of this kind, out of its regu- lar order, requires unanimous consent. Senator Gronna, chairman of the committee, asked this unanimous consent. Senator Henry Cabot Lodge of Massachusetts, Republican leader of the senate in the absence of Senator Penrose, objected to its consideration. So did" Senator Carter Glass of Virginia, leading Democrat. Senator Lodge is quoted as stating that there should be no attempt to consider without “due deliberation” a measure designed to help farmers as a class and that the manufacturers of the Atlantic seaboard were entitled to just as much considera- tion as the farmers. It is interesting to note that afier wheat had. been . going up for two weeks, making a- 22-cent advance during the time that western and southern congressmen were getting together to revive the War Finance corporation, wheat dropped in price 8 cents December 7, the day that Sena- tor Lodge prevented action from be- ing taken. - .SPECULATORS WIN : WHILE SENATE PUTTERS During the two weeks that wheat was advancing ‘in price neither the supply nor demand changed materially. On- Decem- ber 7 there was no news whatever chang- ing either the supply or demand figures. Apparently the action of Senator Lodge alone enabled the grain gamblers to make an 8-cent reduction in quotations. This reduction of 8 cents a bushel on the 750,000,000-bushel wheat crop of the Unit- ed States meant a loss in value of $60,000,- 000 to the farmers and a gain of that much to the “short” gamblers. . And yet there are still a few people who insist that the law of supply and demand alone fixes all prices. The following day, Washington dis- patches to daily papers stated, congress surely would take action. But the follow- ing day no action was taken, and the gamblers continued their raid on the farmers’ wheat, sending prices still lower. Then it was announced that action posi- tively would be taken on Friday, Decem- ber 10. The resolution was taken up—but that was all. - The standpat senators start- ed on their fayorite game, trying to talk it “ to death, They could talk ‘almost anything or any* body to death, without half trying. Some of the senators objected to the language of the resolu- tion, in which the federal reserve board was directed to extend additional credit to the farmers. They said that the federal reserve board was now extend- ing all the credit it could to the farmers—and never cracked a smile while they were saying it. Finally on December 13 the resolution was passed, but in quite different form from what it was when introduced. . Its opponents inserted a pro- vision that the War Finance corporation, when re- vived, should be used to open foreign markets for manufacturers, and not merely for farmers. It also ~was amended so that it did not direct the federal reserve board to increase credits to farmers, but merely stated that congress thought that farmers were entitled to more eredit. Yet in spite of the weakened form of - the resolu- tion it caused an increase of 4 cents in the price of wheat, making up about half the loss that was suf- fered when Senator Lodge blocked ‘consideration of the resolution in its original form. The resolution