The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-24
responsible for the obligations. whether

responsible for the obligations. whether
q st~ookholder or not.
The savings bank features Of the
proposed system result from the fol-
lowing clauses: Deposits Of any
amount may be received by a Federal
land bank from the holder Of one
a Of Its capital stock. The shares
shall be s. apiece. w~jthdrawable under
ule prescribed by the bureau, and
may be held without iimi, as to mum
Der by any individual. Arm. associa
ton. corporation. Or the Government
Of the United States or VI a State. De-
posits af any amount for transmission
to its Federal land bank may he re-
ceived by an association from any
body. member Of outsider. The snares
Of an association are also withdraw
able and only IS apiece. aud may be
Issued without limit ~ to number to
any member. Because Of tne with
drawal right the shares are simply
time deposit certificates. The deposits
received may consist Of current funds.
that ID be checked out IN cash on de-
mand.
Thus the Hollis bill plans 10 give to
this long term mortxagins system not
only direct aid from Government put
TO finance It with short time and even
demand deposits coming from public
and private sources The Secretary Of
the Treasury could deposit in the
Federal land banks all the cssn which
the United States had on Nhand. States
and private concerns and individuals
could deposit In such banks all heir
funds and relieve them from every
kind Vt taxation. . There is no fore
telling the amount tina might be at
tracted By this total tax exemption
And the promise OF Federal function
aries to pay high interest rates. In
his repor; Senator Hollis revels In the
dream of a never ending fow Df saw
ings and deposits. Exultins I'VE the
enormous possible supply he says:
II ineludes the ordinary savings Of the
school teacher. clerk. minister and wage
Garner. the proceeds Of life Insurance In
the hands OF widews and ethef b.ns-
ncisries: funds belonging TO ssts,es. minors
and wards In ohancsry In tho hands of
executors. guardians ard trustses. fund.
W hHV tVWItniNAs OeNeNDlent OFI'TN
and societies Of various kinds: srdowments
Of colleges. hospitals. museums ana other
institufions. and assets to be invested By
receivers. colrts and Gvv.rnrnents
The aggregate OF these has n value
exceeding that Of all farm property
and its annual income Is greater than
that OF agriculture. while Il represents
more people than there are farmers
in the United States. Much Of this
vast wealth is already lent &c farmers
or invested for the benefit Of sgricul-
tufe And perhaps there is not one
intelligent borrower from these con-
servative. considerable and respectable
lenders who would not say that the
terms and interest rate on his loan are
fair and reasonable. Moreover. the
owners OF this wealth are content,
although normally It's average return
Is under 1 per cent "A year. Justice
and wisdom require that these facts
be carefully weighed and the parties
most Interested he consulted before
legislaiing changes.
But Senator Hollis has not con-
even the farmers. Many of the
view him with suspicion. and
u Is IA W. a W shhoN to ''tNhf
a farmer is q LOAF up &c Is per cent.
of the value OF a small farm for one
OF foup specific purposes. under an
that would prevent him
from making proponents for i've
years. chat might oblige him 10 live
and cultivate the mottSased
and not to sell IL or obtain
any more one N II for thirty-six
years, and that would impose double
or unlimited liability on MIN person
ally for all Loans made to other bor-
Tile cooperative building and
loan associations n h mutua! n
kinds Of savings banks. now
l4.yt5.lO4 members II So
355,4l3, Glib OF the wealth that the
Senator dreams Of sbsorbins, are not
friendly. because they realize that
their very existence would be teop-
a rdized by the total tax exemptions
and Government guarantees OF 3 per
cent. for any sums. laIse OF small, III
new institutions.
For "A like reason. opposition Is
spreading among the fraternal orders
anG life insurance companies. with
millions OF members and assets.
The American Federation Of Labor
also passed resolutions contrary To the
Ilpllia plans. evidently because II be-
,ieves tina II j Government %tounties are
To be distributed they should he en-
joycd by the Industrial workman as
well As by the tiller Of the soil.
Depositors and investors are not
cvincing any keen desire tn substitute
their present holdings by bonds unre-
callable for ten years and hy shares
must stand go0d for the losses
Of innumcrablc associations. Farmers
not like the idea of immohilizinC )
per cent. of their loans In such shares
and OF having thei, taxes increased in
order Ia finance the Senator's grand
back to the land movement. So COM
are arising on all sides against
the Hollis bill.
The fact Is Senate Hollis has shot
his land credit mark and he
come a social reformer. moral uplifter
and an aGrarian OF the old Populist
sort. His benevolence and enthusiasm
nave colored his vision in respect to
and finance. lie IL not try
to mobilize land values; he is try
Ing "a substitute the farmers. In franz
ng a bill for this purpose he has copied
in European laws enacted for
he lowest and most ignorant peasants
Ind then added other clauses which