Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-12-12
SEED GRAIN FINANCING

A few days ago A c. 2 ownley. asked the president
to recommend a loan of federal funds to the farmers
of North Dakota and some adjacent territory. of the
very substantial sum of $780, 900, 900 to aid them in OBJ
tanning seed grain for next years crop and feed with
which to maintain their live stock until other feed be-
came available. The president did not make the sug-
.gested recommendation, but Mr.. Townley got a chance
to step into the lt,nelight, and he is not overlooking any
chances of that sort.
Last week the North Dakota State Council of De-
Tense adopted a resolution, which was forwarded Ia
Washington, asking for a federal loan of $4,000, 600 for
the above purposes. Action has not yet been taken on
that request.
large figures, the difference between a loan of fifty mill
lions and one of five millions is probably a matter Of
slight importance. To most other people. however, the
difference of forty-fve millions is worth taking into ac-
count, and there is likely to be an impression that under
conditions which might make the larger Loan unneces-
sary and unreasonable, the smaller might be entirely
wise and proper.
The question whether the farmers of the northwest
are in need of any money from the federal government,
and, if so, how much, depends entirely on whether or
not the funds which the farmers need can be obtained
through the ordinary channels of supply and under CON
ditions which are fair and equitable. One paper a few
days ago presented the interesting argument that all
the money needed for the financing Of farming opera
tons should be supplied by the government because it
would be better for the people to be paying interest
to their own government than to private individuals.
1t happens that our government just now has other uses
for all the money that it can raise than to loan it, with
ior without interest. The government is borrowing, not
loaning money. 1t has already borrowed some eight bill
lions, and within a very short time it will be obliged
to ask for more. 1t is also collecting taxes which will
amount to some three millions a year. All of this money
is being spent as fast as contracts for which it was raised
can be completed, and for every dollar that the govern
ment loans it must borrow an extra dollar or collect an
extra dollar in taxes. t
1t is evident, therefore, that while the government
must do whatever is necessary to keep the productive
enterprises of the country in motion, it has no business
to loan a dollar that it does not need to loan for, that
purpose. 1t needs every dollar in the prosecution of the
war.
Many northwestern farmers will need to borrow
money in order to prepare for the next crop. Do they
need to borrow from the federal government, or can they
obtain the money without appealing to Washington?
In another column is given the text of an opinion
on the state seed grain loan law which opinion was pre-
pared by Edward 3. Cox. of the attorney generals office
in response to a request addressed to the attorney gen
eral. This opinion sets forth, in substances:
grain to be sold to farmers at cost, the amount to be
sold to any one farmer to be limited to $50 bushels of
seed wheat or its equivalent in other grain.
That such bonds may be issued up to the constitu-
tonal limit in any county. (
That where necessary county commissioners may
supply feed sufficient to enable the farmer to put in
his crop.
The above is the gist of the opinion. The law. OF
course, provides for a lien on crop and land, SO that the
county will be amply protected.
1t Is evident from a study of the law as interpreted
that its purpose is to provide for the needs of the small
farmer. the theory being that the big farmer can take