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About The Omaha morning bee. (Omaha [Neb.]) 1922-1927 | View Entire Issue (July 29, 1923)
How Panic Was Averted in 1921 and 1922 I PART III. Washington, July 25.—The Amer ican genius for the use of superla tives is well known, yet only such terms characterize adequately the magnitude, speed and the success of the operations of the War Fi nance corporation in helping agri culture during the crisis of 1921 1922 and in putting farmers in po sition to make the most of the pres ent more favorable conditions. As shown previously, when the agri cultural credits act was passed In August, 1921, farmers were In a desperate plight and few people be lieved the corporation would be able to do anything effective before ruin overtook the whole agricultural in dustry. At tliat time the corporation had only a very small force located in Washington and it had no field or t ganization and little experience In handling large scale agricultural finance. In less than two months an auxiliary banking system with 33 agencies in the various produc ing centers throughout the*United States had been built up, each one In charge of leading bfAkers and1 business men, who were giving their time and ability to the work without compensation and in the ; spirit of public service. Is*nt Two Millions a nay. In less than five months after the passage of the act the corporation was making loans at the rate of $2,000,000 a day. From August to November, 1921. it approved loans for agricultural purposes, Including exports, totaling more than $133, 000.000; from November, 1921, to November, 1922. the total amounted to over $353,000,000. Altogether, up to May 15 of this year, the corpora tion had approved loans amounting to over $515,000,000. These loans were distributed in 37 states and covered a great variety of agricul tural commodities, such as livestock In the West and southwest, cotton in By FRED STAREK. Director of the War Finance Corporation. the south.'graln In the northwest, middlewest and southwest; peanuts in Virginia, tobacco in Indiana, Ohio, North Carolina and neighbor ing states, and rice in California, Louisiana and Arkansas. It was of tremendous advantage that the corporation was empow ered to conduct its activities on a nationwide scale. Because it was able to harmonize its activities with the needs of the various sec tions of the -country and to direct its efforts toward the restoration of more normal conditions through out the nation the beneficial ef fects of its operations rapidly be came cumulative. Com and hogs, sheep and cattle, wool and cotton and most of our staple agricultural products are sold In national mar kets. The strengthening of each weak spot in the situation was helpful in the other sections as well. Confidence Regained. Agriculture and business general ly are not only in better condition so far as tangible factors such as prices and markets are concerned, but they have regained to a re markable degree the intangible but no less essential asset of confi dence. In reviving confidence in farmers and business men alike the corporation has shown even greater results than Us activities in the lending of money In the agricul tural districts. Congress recog nized this fact at Us last session when it extended until March, 1924. the time during which the corpora tion may make new loans. It was realized that the corporation had come to represent an economic re serve tested in a time of acute dis tress and found in actual practice to be capable and efficient in meet ing the needs for which it was created. Though other agencies are in process of organization to (W rittrn for and Copyrighted. 11123. by International News Service.) Editor's Note—Today's concluding In stallment of the threc-story eerie* on the work of t h<* War Finance corpora tion. by Fred Starek. one of its di rectors. indicates the extent of the corporation's activities. Loans were made to virtually ail basic agricultural interests, ranging from livestock to pea nuts. and from tobacco to rice. One principle applied by the corpora tion to meet the great emergency not ordinarily considered in the '•tt^ory of a bank s functions was a study or the psychological elements which were in ton'd f vine depress.on through *"*‘re*sing timidity in economic circles. By virtue of conclusions based on this inspection the corporation wai enabled to direct the nation back into more nearly nor mal channels. This subject is dealt with in this, the last installment In the aeries _ __ assist in the permanent financing of agriculture they are yet to be tried out in actual practice. Meanwhile the corporation, with its experience, its effective organ ization and its ample funds, is the government's guarantee that no gap will be left In the machinery necessary to assure adequate financing to the farmer and stock man. Obviously it is not its part at present to endeavor to increase its business. On the other hand, it is in no sense pressing for the liquidation of its loans, and al though repayments have been flow ing in at a gratifying rate, they are for the most part voluntary and are the natural result of better eco nomic and'financial conditions. Ix>ans Repaid Rapidly. But the corporation's success in making loans speedily, in directing them to the spots where the need was the greatest, was no more re markable than the way in which, after the crisis had been bridged, the government's money has been returning to the treasury. As early as January of last year the repayment* for the month had reached nearly $2,000,000; In March, 1922, they were more than $9. .000,000; and iron) then on repay ments fluctuated between 9,900.000 and J12.000.000 a month until, in October and November, they aver aged more than J15.000.000. Altogether by June 1. 1923 more than J177,000,000 had been r- . 1 to the corporation. The flow of liquidation continues unabated at the present moment and. as al ready pointed out, is an ind. ition not only of the sound bus-: ‘*s methods used by the corporation in making these loans, but it con vincing evidence that the American farmer Is safely on the upgrade that leads to prosperity. So far . about J43.000.0ti0 has been repaid to the corporation on livestock foans. and this *s a smaller per centage than In the case of other agricultural commodities.' but the reason for this lies In the des perate difficulties which the indus try ha:i had to encounter. Dusipatrd Timidity. In explanation of the remarkable success atending the effort* of the corporation In meeting a great emergency, it may be said that from the very beginning it recog nized the importance of psycho logical factors in the situation— both those which contributed to bringing about the crisis and those which might be enlisted in turning the -tide and directing the course of the economic life of the nation Into normal channels, substituting for the fear and hesitation which characterized economic thinking of the time a more fcelrful and more courageous attitude. The loans of the corporation not only helped di rectly the farmer customers of the borrowing banks and the members of the co-operative associations that secured advances: they had a more far-reaching influence in bringing into more active and helpful opera tion the banks and other financing Institutions to which the corpora tion made no loan* at all. For illustration, while the cor poration has approved Iran* to co operative associations of agricul tural producer* amounting to more than tl 85.900,900, it has actually advanced of this amount approxi mately IJ".009,009, the balance be ing obtained by the associations through the regular banking chan nels. It is generally agreed that a good deal of the Willingness of the banks, both those in the agri cultural sections and those in the larger financial center*, to finance the co-operatives has been based upon tfie ability of the co-opera tives to obtain funds from the War Finance corporation. Brians Are All Sound. And one reason why the activ.ties of the corporation were so potent in restoring confidence was that, in spite of the necessity of handling an enormous volume of business . within a short period and at long distances. Its loans were made on a sound business basis. Banks 'and other financing institutions which followed the situation closely could see that the corporation, while using all possible dispatch, was at the same time adhering to all the principles of sound banking prac tice. Ar.d. not only that, the cor poration introduced Improved meth ods of banking in various sections of the country where ’hey were greatly needed. The present outlook is so favor able generally that the n"d of th» hour is no longer confidence and willingness to go ahead in the face of apparent obstacles, but is rather a conservative optimism that is tempered by a good deal of care to see that we do not overleap the mark and bring on a period of infla tion to be inevitably followed by depression. What we need now is a determination to keep a firm grip on what we have gained ar.d to build carefully and soundly for the future. Short Stories of Doings in World of Invention By means of a new electrical ma chine, the disease, sex and race cf a patient can be told from a drop of his or her blood. Woven bronze wire sieves, used in testing the fineness of Portland ce ment, have 4^,000 holes to the square inch and will hold water. A new trunk rack for the rear of automobiles also protects a spars tiro or wheel against theft, both when empty and folded or if carry ing baggage. A footprint is declared to be as valuable and permanent a trade 1 mark as a thumbprint, and is now * being used to identify babies imme ( diately after birth. The American Zeppelin now un der construction at Kriedrlchshafen, fGermany, will be inflated with hy drogen preparatory to its flight to the I'nited States For gelf players, a new stroke counter has been designed with nine ■mail dials on its face Pressing the stem causes a hand on each dial in turn to register. Automatically controlled colored lights, on the principle of automo Ibile tall lights, are l>eing tried out on street cars in lietroit, Mich., to signal to following vehicle*. A gtant steam turbine generator of modem construction Is capable of furnishing energy equal to the muscle work of 5.100.000 men work ing in three eight hour shifts. The tolechronomcter is a small device which measures the amount of time that a person spends in using the telephone. It registers only at the Instrument of the per son who calls. An Imitation linen for collars lias been Invented, with each thread of the fabric so treated as to resist stains and dirt that they do not penetrate, making the collars easily ■cleaned. A collection or bugs was recently iported to the United States in a frlgerator from Smith America, hesc hugs are to i»e propagated in >ls country, and then turned loose war on insect pests. A process has been developed hv ftp bureau of mines whereby liquid ii explosives may lx* used eco |Hy for blasting purposes In salt or other mineral mines tarries, but not in coal mines, •lectrh’wl developer Is used by hail team in I,«»ndon as.a sub for strenuous training meth Tiio player sits in a metal connected with the controls very muscle in the body i*» led the same as if physical ae weiv applied. Ctootge W. Carver of Tuske Ititute. who developed 165 by d*. 6f the peanut ami 115 of reel potato, was awarded the gnrn medal, which is given lly for the most distinguished ement by an Amor can of n descent. ABE MARTIN On th’ Vacation Season \ No,s/f?, she HAtNr, I SHE’S ON A VACAT/0N Some Bosses Caei Be lh' Gruffesl Ol’ Thinp*. When you go in t' Eit a pair o' *.eks jeet like th' last pair you got, > on't be surprised t' find a stranyt clerk on th’ job. fer it* now vacation time. Th fourth of July nti* Christmas an' other holi day* urset business purty bad, but th' big Jolt comes when wliat is commonly referred tc as th' vaca tion reason hits ua. Most of us lrivc our favorite clerks In th’ va rious stores. fellers that we wouldn' recognise on th' sidewalk with ther hats an' coats on, but fellers that somehow seem t know what we want better than we know ourselves. So when th’ vacation shake up comes It hits lots of us purty severely, an' buyin' some thin' like we had, or even gittln' somethin' that half way suits us Is out o’ th' question. Th' vaca tion season Is th' time when we buy things v e don't want Jest t’ r!U out of a store an' away from some strange an’ unfeelln* clerk. We like t' drop In a store an' say. "Charley, show me some kind of n hat. somethin', oh. you know what I want," an' Charley says, "You wear a sis an' seven e ahts How ooes that feel on your head? It looks sw-elt," an’ w settle an' walk out. not only ntof.-Yd. but highly elated. Charley even knows our Initials an' where t send our ole hat, an' maybe he'll say "I passed your boiue Sunday. Some swell dump you've got." Durin" vacation time is th' open season fer all th' gruffness an' curtness an' bluntness that em ployers have In ther system, on" it's no wonder. After wrvrkin" eight or nine m nth* t' perfect a gilt edged workin' force, th' vaca tion period knocks it entry. Many an underwear sale, many a polka dot necktie sale, many sales o' all kinds are lost on account o’ strange, undiplomatic. inexper ienced an' temporary clerks. After a clerk learns our pajama sire aa' knows we won't stand fer ptnk. after he knows better than t" show us a IS cravat, or make us believe somethin's all silk, we like t' stick to him an' have him wait on us He's supposed t' remember all our sires, collar, glote an' sock, an' it relieves us o' carryin' a great ar ray o' figures In our head. It fills us with pride fer a clerk t" pay. “I know what shoe you mean an' we hntn't got It. Sorry."* That’s so much better than havin' some 19 > enrols boy clerk take our shoes off an' then disci Dp* ar fer a halt An hour an' return with an' armful o' shoes all entirely different from th' kind we asked fer. An' maybe he'd i,.y. “Here's what you ought t' vreer," after «!*» been buy in' thi.es fit SS years. We don't know o' 1 othin worse'a gitttn' hypno tised int" some underwear an' carryin' 'em home an’ puttin' era on an' rtppin 'em off an' try in' t' wrap-up like they wuz la' takin' 'em back an" waitin’ fer our money. Tell Binkley wuz ail smiles this mornin' 'cause th' only waitress that knows jest how he likes his eggs 'll be back from Xkvgary Pal’s th' last o' neat week. (Copyright, till l Items of Interest The United States Department of Agriculture has a motorized balloon to fight the ravages of the gypsy moth. A material called ‘‘lithoform" has been developed by which, it is said, paint will be kept form peeling from galvanized iron sheets. Pivoted to the edge of a recently patented scoop shovel is a sieve with which ashes can be sifted as they are removed from a residence heater. Prance has taken the first st--ps In creating a national bureau for scientific research and Investiga tion with particular reference to industrial inventions. Huey steel grabs, which lift up an unprecedented collection of logs in the manner of seme great giant, are the latest development of Ger man engineers. In Japan. m.Vern electric heaters are replacing small charcoal stoves. Housewives are adopting electric w ishers, boms table stoves and other sppl.anoes. Here and There Sharpened spurs, which can be damped to the side of ladders to prevent their slipping, have been invented. The largest oil storage tank in the v rid is nearing competition tt Wilmington, Cal Covering an area of 100 acres, the tank has a capacity of 1,750.^06 barrels. For automobile repair men an instrument has been invented for accurately checking the alignment of pistons and. to test, straighten and check the connecting rods >f cars. The food research institute f Stanford university is condu rg an Investigation to determ, r a whether gasoline, electric or horse drawn trucks are most eff.cier' n delivering baker's bread A PI MWMHIBiT “STOPS HAT FEVER IR THREE MINUTES” Amazing Results Secured by Scientific French Discovery Which Anyone Cmn Now Easily Use at Home. Hay Fever ami "Rose Cod' are row attributed by eeieatote to tbe erer eieitabili-y of eertaia delicate amkira is tbe h-eaihmg passages—this c.edi tion making the affected person highly sensitive to pollen. du-t. etc. Were these membrane# are beae-d and strengthened, however, one rapidly becomes uv.rr .ae te dust ard pollen, and ae longer i* troubled wttb Hay Fever or "Rose Ced ' It is now an easy matter to obtain this immunity and be rid of Hay Fever and "Rove Cold" as the rest t of a remarkable French discovery. Thou sards of sufferers say this acieri-.fie discovery, known as Lave*. freed the* fro* th eir trouble ta a few .lays. Tbe treatment is easily used at home, svmpiy by in haling a Flensaitt harmless powder which stops the sneexirg ard running *1 tbe nose ard qu.-hly re-eves tafavai- 10a of the eyes. The results are astonishing in their rapidity. For instance. W. W Ibggett. Baird. Wash., says: "Since taking your La'-ex Treatment I haven’t been bothered «-th Hay Fever I had Hay Fever *e bad foe the last three year* I eouid hardly live in the summer and ahea l Would lie dowr at ni.rht I eouid not get «v breath 1 surely appreciate yonr met ' m and w.ri praise it to everyone I see So confident is the American dn trihator of lave* that it will speedily care Hay Fever and "Rove Cold.” that he offers to send a fall $i»* treatment on free trial to anyone who will write for it. I’se it according to direer-ons ard if you are rot mow than satisfied with the results, the treatment doe* not root a cent. SIND NO MONKY—Just your rome end add revs to W. R. Smith, ltd lave* |: dg . Kansas City. and this trvxt *eat wall be rivai’od at cice iuf p.xia near per When it arrive* may tbe post man V.y *. «t »»d PO -age Try : ten dav- and if > u are a-t freed fry your Hay Fever "Rose Cokd." s-eeari eye inflammation and man ' c at the rose, your n-.-nev win he refunded V big Karsas Ciiv hank gwataabee* thvt Mr Smith *v nr ..ah! • the I vuffvi- is othvr dav he trea'.aacat a trial SB this SWb . vstleg. _ _——