Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1918-01-31
THE FARM LAND BANKS.

Unuer IHe ulBHlnOu INV
manlike heading, THE Stuck PIG
soueals," Congressman Helyering'
with that fine sense of courtesy that
marks his public utterances, is send
ing to the Democratic papers an apu-
siye attack on a banker who has APP
parently asked him a civil question
about farm land banks. Mr. Helver-
ing declares vehemently that they
are doing wonderful work and have
lowered the rate of interest all over
the country.
The cold facts are that the banks
are in serious straits and unless the
congress appropriates some two hun
dred million dollars to help them out
they are bankrupt. Only twenty
nine millions of loans have been
made-the total mortgage debt of
the United States is over $500 mil
lion. The banks have raised the rate
to 5 y per cent and is unable to SEEK
its bonds at Az per cent. Mr.. Hell
vering talks about these bonds being
"instrumentalities of the govern
ment" and gives the impression that
he thinks the government is behind
them. Secretary McAdoo in a letter
to Governor Whitman asking New
York to authorize the banks of that
state to buy the bonds said the gov
eminent does not guarantee them
and Governor Whitman sent mes
sage to the legislature protesting
against the legislation because of 1t.
In his annual report the bank COM
missioner of Vermont advises tho
banks not to buy them.
The only basis of the bonds is
the mortgage debt. The great part
of the loans is made in the high
plains country where loan compan-
les do not operate because of the
risk. The appraisers are political
appointees, not always experts. III
JnG lOdHS are mduC Ndi OAuAiy
bonds are good; if not, they are poor
Investments. Anyhow, the public
will not buy them until it knows.
The officers of the banks are appoint
ed and the new law makes their ten
ure of office permanent if it passes.
The truth about the federal land
bank is that it is complicated and
cluttered up with politics and is run
extensively. 1t has run less than 8
months and is bankrupt unless con-
gress takes the peoples money and
helps it out. This Mr. Helvering
knows as we'll as anybody for the
matter has been thoroly aired on the
floor of the house. Some $50 mill
lions of loans are pending, none is
being made and the farmers cannot
get their money. Nine-tenths of the
borrowings are to refund debts-not
to increase production. 1t may be
the best thing to give up 200 million
dollars and keep the system running
until the war is over, but the cold
truth is that so far as the established
and safe loan field is concerned
like central Kansas-every farmer
can borrow money as cheaply from
regular agencies as from the federal
land bank and get it promptly. The
glorious claims about wonderful re-
duction in rates are largely bunk
the land bank itself has raised its
rates.
After the war congress will get to
work and revise the entire plan. cut
out about seven-eighths Of the red
tape and high salaried officers and
make a working plan that will do
what is demanded, allow the farmer
to obtain money as cheaply as posi-
Bile, considering the immutable law
of supply and demand.
The land bank is a business propo-
sition not a political game, as Mr..
Helvering seems to think, and there
is no particular need Of the Demo-