Credit as a Tool of Statecraft

This chapter shows how Progressives returned to the issue of farm credit distribution in the early 1900s and drew on European precedents to reframe credit allocation as a way for the central government to help people help themselves. American Progressives thus replaced their earlier, more radical farm credit politics with a more moderate vision of government-supported credit as an inexpensive way of supporting self-help. The chapter then considers the Federal Farm Loan Act (FFLA). Compared with other hallmarks of Progressive Era state building, the FFLA seems relatively unimportant. Nevertheless, it was a turning point in the use of selective credit as a tool of federal statecraft in the United States. The FFLA provided federal credit on a national level that was administered through public–private partnerships and bolstered by tax expenditures. By tracing the lead-up to this policy, one can see how Progressives forged a new array of cultural and organizational approaches to federal credit that would later proliferate across policy arenas.