The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-04-17

make the loans, Is SO lear the pater-
nalistic, and SO close to h utiliza-
ton of government for personal rath-
or than community purposes, with its
intermingling of Individual feelings
and partisan politics, that it ought not
to receive n serious attention.
Whether the proposal can be so easily
disposed Of is doubtful, in view Of our
widening notions of the utilization Of
government for class purposes. 1t
must not be forgotten that such ad-
vocacy does not dispose of the claims
Of every citizen for financial aid in his
business, but opens the way to whole
sale raids of the public treasury that
can result in but the decentralization
of government and the breakdown Of
the public conscience. 1t may be in
sisted that the farmer is the founda
ton Of the Industrial organization and
his importance cannot be denied, but
O. similar argument can be made for
the miners Of coal, the producers OF
lumber, and many other classes OF
producers, for similar treatment and
favor.
The Option of Co. operative or Private
80. .~ Banking. AZ .....
It would appear, then, that the op-
ton lies between some form OF Coop
erative banking, conducted by the
farmers themselves, and some form Of
private banking, such as that of the
Fletcher bill. 1 sympathize with the
first view and hope that the way
might be open to such a development.
but If / am to accept the figures re-
garding agriculture with its small per
capita earnings and its high cost of
production, then / an forced to ac-
knowledge the presence Of an immense
need for capital and an adequate
financing Of a vast industry. 1t is in
reality a question Of accepting the
evils of another banking system witt
its controlling power over the land. a.
against a long wait Of many years be
fore a cooperative plan a get int
swing. The Importance of checking
tenancy Is a matter that touches thu
fiber Of the nation; but whose solution
is not one Of eugenicS, but of a finan
cial support for the ambitions of man,
farm laborers. To this need may ais
be added the cry for more capital tina
will facilitate the coming Of a newe
and moro adequate agriculture. D
these needs balance the evils Of
banking system controlled by other
than farmers and which is wholly sup
Elementary to agriculture and not Q
it. At this hour of economic need, tn
thing itself Is what is wanted, and
futuer cooperative banking syster
encouraged by q liberal provision 10
it's development.
In the absence of careful investiga
ton of our banking system, it is diff
cult to draw conclusions regarding 1t
recreancy, and to state finalities as t
it's undesirableness as a servant of tn
public in the specific case of agricul
tural credit. Is the line Of c~ontrovers
to be drawn SO sharply as to separat
earnest men contending for the sam
: principle, but differing in the matte
{ Of organization, and does the Fletche
bill meet an immediate need and pro
/ vide for a future cooperative Ian
mortgage credit plan?
Requirement in q Plan.
In any plan for q system Of farl
. mortgage credits the fundamentals al
. an amortization provision for til
payment of the principal. q. mark4
rate of interest, low administrative
cost, freedom OF bonds from ~taxatio,
the right to pay at any time. and pre-
lection of bond holders. All Of thes
; are contained in the bill under discus
a sion in one form or another. To pt
. it broadly, any mortgage plan mu'
give inducements to investing capt.
the payment of the loan. Whether tt
money loaned will be repaid is the Ell
{ sential element in the entire plan.
q In the United States long time pc
: iodS of redemption are permitted, ar
in some instances homestead exeml
itions: both OF these initiate again
prompt payment and the sale of I'll
property as soon as payment is d
IIayed. The bill is not specific enous
upon this point, nor does it requi
9 In adequate language the establish
ment Of unimpeachabia title guaral
y tee for the protection OF the bon,
holder. I am not impressed with u
q argument for the unit area as q bas
= for the banks operations. The use
]. the state is an artificial unit that do
" not correspond with economic conc
U lions. A glance at a ma shows tn
y such a restriction would militia
n against the best use Of the system
n many states where financial cente
extend their functions beyond the DO
ders of one state into the neighboril
,r state. The mention OF cities like Phi
adelphia, New York, Clevelar
y Youngstown, Pittsburgh, st. Lou
~ Spokane, Grand Forks, Fargo, Ne
Orleans. Mobile. Davenport, Omaf
~ Kansas City. and other towns sit
Al ated on the borders of state shows tn
the matter OF the service unit is
"A important question which would
IA solved by insisting upon federal i
4. corporation and the compliance on {
part Of the states with the provisio
Il for protection OF title and the waivi
dc of redemption and exemption priviIes
la now in the title and foreclosure law
xe most of the states.
sy Seemingly the commission bsliev
lthat the fi1rSiarV agent dasyira M,