The Devils Lake world and inter-ocean. (Devils Lake, N.D.) 1915-1920, 1916-08-03
news. FROM 4
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THE CAPITAL

Washington, July 81. Especial. y
The rural credits bill as signed by
the President on July II, is not nearly
what was desired by the farmer of the
Northwest; but as Senator McCumber
says, it established a rural credits sys-
tenn that can be changed to give e
lief to the farming communities gener-
ally.
edo not know why the Democrats
call this a Democratic measure, unless
it is because they have surrounded it
with provisions that make it imprac-
ticable," said Senator McCumber who
was one of the first advocates of a ru-
raj credits system.
About ten years ago, under the
Roosevelt administration, the matter
was taken up and a commission was
appointed to study the farm loan sys-
TENS of Europe. This commission was
headed by Myron T. Herrick, former
governor of Ohio, and a most exhaus-,
tive report on the was made.
In the lask~Congress Senator McCum~
bex Secured the passage through the
1Senate of his bill as an amendment to
the agricultural appropriation bill,
and, but for a preliminary trick in the
House, whereby the House Members
were prevented from voting directly
on the question, his amendment would
have been adopted. But, by a motion
to refer the amended bill to the COM
mittee, a direct vote on the PROPOSE
ton was averted, and the matter went
over to this session when a Democratic
measure was put through.
In this connection it might be said
that all great measures are considered
several years by Congress before be-
. ing enacted into law. And Of the
three great measures affecting the ag-
r%icultural interests that have been re-
Gently enacted, Senator McCumber
took an active part in enacting them
all. First, the pure food bill was re-
ferred to his committee when he first
entered Congress-, with an idea that he
as a new member would pigeon-hole
it as had been done before, but which
he took up after a ten year fight III
allv wrote the law that was enacted.
Then the Federal inspection and grad
ing of grain bill that he had been adj
vocating and fighting for for more
than fifteen years has finally been
nassed. and while the bill as passed, is
not what is needed or demanded, it IS
a move in the right direction and tne
law can and viii be so amended as TO
meet the requirements of the grain
growers of the Northwest.
The same can be said of the rural
credits or Federal farm loan law
Senator McCumber took up the ques"
tion more than eight years ago. Inc
principal objections to the law just
signed is that it is too cumbersome
and expensive to meet the require
ments. In the first place the law pro-
yides for the appointment of a Farm
Loan Bureau in Washington OF live
members at a salary of $4,000 each,
who, together with clerks, stenogra-
pliers and laborers, will cost more
than 5000, 1000 per year.
Then there are to be established
twelve Federal Farm loan banks
whose capital must be $4,000 each.
one-third of which may be subscribed
) bv the Governmental having salaT'
, led directors and employees. Then:
to secure a loan the farmer must or
ganize a farm loan association. This
organization must consist Of at least
, ten actual farmers and all must take
stock in the farm loan banks. This
organization must have a salaried Sec
) retary-treasurer.
In order to secure a loan the farmer
must take shares of stock equal to
per cent of the amount of loan he
; wishes, and the full payment of this
) stock will be deducted from his loan
} In addition all the other members Of
the local farm loan association must
endorse and become liable for the
!. loans made through that association
) 1t is true that an inspector will be
sent to %appraise the land that is to be
mortgaged, and, there will be little
liability to the members of the asso'
citation, yet they must endorse thu
notes, and very few farmers Of thu
country will care to endorse the nott
of a neighbor even though he has am
pie security.