12 



directions. The problem was one of emphasis and selection rather 

 than one of new departure. And for the future, is it not likely that 

 it will continue to be one of emphasis and selection rather than of 

 novel enterprises? I have sought light on this problem from many 

 sources. I have asked for suggestions in many directions and, for 

 the most part, all that I have received to date confirm the view that 

 we shall continue the process of selection and emphasis rather than 

 attempt novel things. 



CONSTRUCTIVE LEGISLATION IN LAST FIVE YEARS. 



The last five years were especially fruitful of legislation helpful to 

 agriculture. The first striking achievement was the adoption of the 

 Federal Reserve Act and the organization of the system. Anything 

 that improv3s the finances of the Nation, that makes them sound 

 and enduring, helps every citizen. It seems providential that the 

 Reserve system should have been inaugurated before the breaking 

 out of the European war. This war involved financial burdens and 

 strains such as no economist imagined any country could stand; and 

 yet this Nation has, by reason of the operations of the Federal Reserve 

 Board and of the reserve banks, proceeded in orderly fashion with 

 its finances. It has met its own needs and has come to the rescue 

 of the countries with which we are associated. In no former period, 

 either of war or of peace, were we able to weather any considerable 

 financial storm. During the Revolutionary War our finances were 

 chaotic. We promptly suspended specie payments at the beginning 

 of the war of 1812, and also when our Civil War came on. During 

 the period of expansion in the '30s, we suspended specie payments 

 and did not resume them for a number of years. In 1873, by reason 

 of the over-trading following the Civil War, we had a suspension 

 within a suspension. Twenty years later we were in trouble again, 

 and in 1907 we had difficulties of a special and peculiar nature. What 

 would have been the course of things if we had been less fortunately 

 situated in this war no human being can tell. 



The Federal Reserve Act not only enabled us to sustain our whole 

 financial structure and to permit all industries to survive the financial 

 crisis, but it took special note of the farmers' needs. It permitted 

 national banks to lend on real estate and gave to farm paper a matur- 

 ing period of six months. Later came the Farm Loan Act,with whose 

 terms and operations you are familiar. Notwithstanding the fact that 

 this measure was passed and the system put into operation in a time 

 of great stress, it has made marked headway and furnished great 

 relief. Other measures, well known to you, are the cooperative Agri- 

 cultural Extension Act, the Federal Aid Road Act, and the Grain 

 Standards, Cotton Futures, and Warehouse Acts. I might add to 



