The Sunday telegram. [volume] (Clarksburg, W. Va.) 1914-1927, 1916-09-03
Stock Promoters Prepare to
Fleece the Farmers through
Double Par Value Sales.

fleece Inc Farmers through
Double Par Value Sales.
When President Wilson signed the
rural credits law he did II with con
siderable ostentation Grouped about
him within the focus Of the camera
which pictured the scene We're over
a score Of public officials and nom
beers OF Congress, including Secretary
or the Treasury McAdoo. Senators
owen and Hollis. and Representative
Glass
Tho spectacular ceremony with
which the signing of the act was nc
comDauicd Indicated the Importance
which the president attached to the
enactment OF the law. and was
forerunncr of the stress which will
be given the achievement by hun
drcds Of Democratic orators during
the campaign.
ON its face. the new law seems
Utopian in It's possibilities. 4 big
loan. low interest. Il long term OF
years, and an amortization plan of
satisfying the debt-that is. u plan
which will pay it all of, principal and
interest. at III expiration Of the loan
interest, at the expiration of the loan
er crampcd for funds and wanting h
loan on such easy-going conditions.
But an analysis Of the new law and
careful study of all its provisions
creates doubt as to its benchcencc.
and the question arises Has not the
farmer. who for years has asked for
the wholesome bread" of a practi-
cal rural credits law. been given in
this complex creation stone or.
worse still. a gold brick?
There IL Jeityll and Hyde dual
personality flavor TO II which war
rants Withholding unqualified appro-
val OF 1t until il has been given a
trial.
Gives Fat Jobs.
OF one thing there is certainty: the
law gives fat Jobs ut $4,000 year
and travelling expenses TO four fortu
nate gentlemen who already have an
nounecd that they will tour the coun-
try. North, East South and West
for the coming five or six months in
order to select twelve cities In which
/ to place the twelve federal land banks
provided by the law. 1t also provides
/ for the employment of Il small army
Of additional federal employees at
/ tOrneyE, experts. assistants. clerks.
and laborers- will not be re-
/ Quired to take civil service examine
/ tons, but may be placed in the clas-
/ sified service by the president.
An analysis of the rural credits law
made by Paul v. Collins and publish
cd in The outlook gives an insight
\ into its complexities. Mr., Collins is
qualified to deal with the subject.
! For twenty-five years he has pub
| lished the Northwestern AgTicultur-
ist and during all these years has
made a special study of agricultural
economies. At the instance of the
farmers of Minnesota he was the Pro
gressive candidate for governor OF
that state in 1912. Mr. Collins Is an
advocate of rural credits legislation
but believes the law just enacted So
defective and containing such con-
Trajectory provisions as to make II
unavoidable and likely to be detri-
ment rather than benefit to the
farming class.
Two Distinct Systems.
In his article in The outlook Mr.
Collins points out that the new law
provides two distinct systems in com
petition with each other-one, coop
Grafton among farmers; the other,
joint-stock banks. The first is based
upon voluntary cooperation of farm
borrowers, creating their own ma
chinery for credits with the help and
supervision of the government. 1t Is
built from the top downward-from
the expensive federal land board,
comprising the secretary Of the treas
ury ex oflicio and four commissioners.
The country is to be divided into
twelve districts with n federal land
bank in each. Then, farmer borrow
ers must organize Themselves into To-
cal cooperative credit unions, which
shall pass upon applications Of their
own members for mortgage loans and
to appraise the farms. The loan, II
authorized is made by the federal
land bank, the local credit union be
coming responsible for the loans
made TO its members.
Each borrower must use five per
cent of his loan in purchasing stock
in his credit union, ana the union us
es this money in purchasing an equal
amount of stock in the district federal
land bank to be held as additional Sc
curity with each mortgage. The land
banks will start with minimum cap
| ital stock of $4,000 each and this
will grow with their increase of loans
so that the stock will always amount
to at least five per cent of their total
outstanding loans. The stock of the
land banks will be offered to private
investors for thirty days and the gov
ernment will then invest in the UNI
subscribed stock. which probably will
be practically all of it, as 1t offers no
attractions for private investors.
Twelve Depositaries.
The twelve federal land banks are
to be made government depOsitaries
! fnr pnVarnmnnt deDnsitS not to eX-