The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-24
RURAL CREDITS.

Ivsss fhs uoii,. p,n "a p.t.t. No.
Whcre ~ rsvis a. ~. a.. T.sS,s
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The Hollis bill Is a defective. useless
dangerous measure. 1t Is full OF
flaws. Inconsistencies, l%oopholes, jokers
and meaningless verbiage. besides lack
ing indispensable clauses. while 1t fia-
granny violates basic principles by
substituting the credit OF Government
Tor the credit OF the land and by
ciotning land credit institutions with
savings bank powers and allowing
tnem 10 pyramid on their credit and
their assets with liabilities
through bond issues.
In limos every section Of the bill
there is error on some important point
or IN respect to minor details. and Its
general plan liz rendered utterly vicious
by two monster objects. which are:
an unjustihable use Of the cash and
crcdit or the United states Govern
ment Tor a spccia, class OF private in.
uividuals; and h creation (too soon
after the postal banks) of another
government savings bank system, alb
solutely unnecessary and fraught with
grave dangers because Of wrongful
combination with long term opera
tons. The bill is 40 bad and faulty
mat II would not have the ghost Of
o chance in Congress were II not for
the fact that q Presidential campaign
IS near.
n bill includes In its plan sucn
Incompatible elements as Federal and
private land banks. cooperative asso-
Citations, NC called. and various kinds
OF mortgaglng Institutions. whether
organized under national or State
laws. The latter. however. by the
adroi; wording Of IN apparently in.
sig nificsnt clause. mus, have capital
STOCKS. THIS deprives life Insurance
companies. mutual savings banks and
building and loan associations (which
are without capital stock Of the tax
exemptions, privileges and benefits Of
the system. The obvious purpose OF
this joker IL OF course TO place these
greatest OF m~ortgagina concerns at a
~adranta as competitors with the
new Government Institutions to he
formed.
This complicated and disorderiy sys-
tenn would bp in fact a bureau Of the
Treasury Department. supervised and
directed by "A board consisting of the
Secretary Of the Treasury and four
other appointces Of the President and
Senate Of the United states. and nos
sessing both executive and judicial
powers. with the right to regulate In.
terest rates under a prescribed maxi.
num-. to take away charters granted
by 1t and to dissolve the land banks
and associations without Intervention
" the courts. No appeal would lie
against any Of its acts. its authority
being autocratic ana supreme, subject
only TO the genera control OF Con.
gre~s.
The provisions relating to pcIvate
land banks and mortgage nstj,utions
organized under State laws and exist.
ing national laws are apparently an
afterthousht. inserted perhaps as a son
tn bankers and MORTGAGE mer. They
are :mperfectly worded, however. and
nave tangled up the system
SO badly that they satisfy nobody.
Their effect would lie 10 confuse Gov
eminent Intervention with private en-
terprise and 10 allow companies con-
Quoted for gain 10 enjoy tax cxemp-
ti"ns and TO operate with free or cheap
money supplied by the United States.
This defect ought t. he sufficient in
itself to defeat the DILL.
me twelve Federal land banks for
wn'cn the plll provides would no hut
the start or this State aided and Gov
eminent controlled long term mort