The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-03-18

kota, but it does show that the de-
m.and for our service was greater in
North Dakota, than in any other
state In our district.
THE Federal Land bank system
which uses its mortgages for security
for bond issues must exercise the
greatest precaution and operate
strictly according to law in order TO
protect the bond buyer in the fullest
sense. This may not be so impera-
tive with farm mortgage bankers, as
we understand they are still operat-
ing in the state Of North Dakota to
their full capacity. This is, of course,
entirely legitimate for them, as they
do not operate under any such strict
supervision as the Federal Farm
"E. G. Quanme,
president st. Paul Federal Farm
Loan Bank" ....-
League Measure Responsible.
The action of the Federal Farm
Loan bank in withdrawing from
North Dakota is the direct result Of
the work of the Nonpartisan league
leadership in the recent special ses-
sion Of the state legislature.
When the session was convened, a
seed grain bill, drawn by the league
attorneys in st. Paul, either by Will
liam Lemke. Arthur LaSueur, the ex-
Socialist mayor of Minot, or James
Manahan, was introduced and 1t was
passed post haste by the house OF
representatives in accordance with
the league plan to attempt to should
er onto the state senate responsible
ty for delaying the session:
In the senate a bill was passed
the priority lien feature,
as we'll as the state guarantee of the
seed bonds, which bonds, by the way,
now aggregate over 100000 in the
state.
The house rejected the senate
and the matter went to
Al committee on which
there were five Nonpartisan members
and only one independent member,
wrestled with the seed bill from Satur-
day evening until late Monday. SEN
ator Jacobson. the lone Independent
on the committee, insisted ,
that the priority clause should be
and he specifically pointed
out to the league members the fact
that 1t might bar the Farm Loan
bank from the state, and that it
would result in barring capital from |
the state that ordinarily was invest |
ed in farm loans.
Senator Jacobson also insisted that |
the state guarantee clause should not |
be included in the act.
The leaguers finally delivered their
direct from William |
Jemke. vice president of the league,
as we'll as from the governor, to the /
effect that they would stand for no |
dill that did not include the priority |
clause, as well as the state guarantee.
The independents finally conceded /
the point. under protest, and the |
bill was passed and was
signed by the governor.
Ever since Mr.. Quamme's original
statement Of two weeks ago was is
Iued. in which he declared loans were
being temporarily held UP, the
eague's newspapers and organizers
nave sought to show that the whole
ssue was being raised for political
purposes.
Now. however. the federal farm
oan board in Washington has been
'orced to act, and the greatest single
agency the nation has today for re-
lucing the rate OF farm mortgage
interest, has been driven out Of North
Dakota.
Recently of the Farm Loan bank
nto North Dakota is dependent who'll
v upon the administrations ability
o. eliminate the obnoxious provision
II its seed grain law.