The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-03-19
Steps Will Be Taken To
Have Law Declared I'm
constitutional
ACTION BY FARM
LOAN BANK LIKELY
Federal Institution Is Anx-
ious To Get Back In
North Dakota
(sy H. o. PAuLsoN.)

mediate steps to restore to the farm
ers of North Dakota the benefits
| accruing to them by virtue of the
operation Of the federal farm loan
bank, are contemplated by officials
Of the st. Paul land bank who an
| nounced last Saturday evening that
the bank would discontinue operat-
ing in the state because of the seed
grain bill passed by the North Da-
kota legislature in its recent special
session.
The supreme court of North Da-
kota viii be asked to declare the
obnoxious hen priority clause un-
constitutional, but just what plan
will be adopted to bring 1t about,
still remains uncertain. The federal
farm loan bank may begin an action,
or 1t may arrange to have some
farmer begin friendly suit. At any
event there will be no delay in
bringing about the desired step. for
officials of the farm loan bank, Il. G..
Quamme, president OF the bank.
yesterday explained, are extremely
anxious to get back into the North
Dakota field.
With incomplete applications for
farm loans pending to the extent OF
over 100000, farm loan bank Of
ftcials estimate that North Dakota
requires at least $4,000, 900 between
now and July ], II il is to produce
its quota of the wheat and grain
supply needed by the nation and by
the world.
Hits Crop Production Plans.
Coming as it does at a time when
the demand for grain production Is
the greatest known in the history OF
the world. the action of the state
legislature in passing the priority OF
liens clause that bars the federal
bank from the state, is regarded as
nothing short OF calamitous. The
federal farm loan board in Wash
ington abandoned the farm loan
business in North Dakota only after
making a thorough study OF the
provision of the law Ia question, and
its withdrawal was the only step
possible under the circumstances.
Coupled with the withdrawal of
the federal farm loan bank there is
also the action of other money loan
ing agencies that have withdrawn
from the state. Bankers. in North
Dakota have for some time realized
that money was being withdrawn
from the state at q rapid rate, and
that many Of the sources of money,
previously open to the farmers OF
North Dakota, have been closed.
Result of Seed Act.
The Withdrawals so far announced
have been the direct result OF the
seed grain act, passed with a clause
that made seed grain liens prior
liens on lands, placing them ahead
or first farm mortEaged, executed
subsequent to the seed act, second
ary securities F. .s.E
The extent of the credit with
drawal already determined upon,
and that likely to develop as re-
suit Of the federal farm loan banks
action, is stin an uncertaint GUAM
tity, though there is reason to be-
lieve that IL will be considerable.
The action OF the farm loan bank,
made known to the entire Country
by reason of the fact that the an
nouncement was carried Saturday
night on press wires to ell sections
OF the United States. will serve to
call the attention OF the whole ma
tion to the condition that exists in
North Dakota, and certainly VIII not
aid the state in obtaining the money
that it so urgently requires If its
are to be developed to
their full capacity.
Federal farm loan bank officials
do not question that the bank
will be operating in the state again
within a short time. or Just as soon
as the supreme court gets actiun on
the law ]" the courts should hold
the law unconstitutional, then Il
would be necessary for Governor
Frazier to reconvene the Iegisla-
ture in special assembly to undo its
previous act
State Got Biggest Sum.
When the federal farm loan bank
quit doing business in North Da-
kota, that state held the record for
tho Ereategt total OF loans received |
through the bank. The cggregate of |
leans made in North Dakota was
s6,216,000, according to the March |
report covering the operation Of |
the farm bank in all states in the |
union. Applications for loans had /
totalled $17,271,350, being the third |
greatest total of applications made |
oy the states. Texas. with applfca-
lions for $27,421 ,720, had the great
sst total OF applications while CALI |
.oFnia, with applications for S1s,- 1
114,s62, was second in the list
In North Dakota, however the 1
money actually loaned was greater
han in any other state.
Kansas comes second with S4,~
i61, 800, while Texas, with $4,529, ,436,
s third. In California. the loans
made aggregate 93,697, 100.
All told, in the entire farm loan
bank system, loans aggregate $64,-
'32, ,34s, thus North Dakota's total
u over six million dollars in loans
sompleted represents about one
.enth OF all OF the business trans
anfad by the entire federal farm |
can banking system IN the entire
lation. Today that bank Is out or
business in the state because Of a
single piece OF hastily passed 1egis-
alton, the probable effect of which
vas pointed out to its sponsors and
packers while tt was In the process
Il making, but they absolutely re-
used to yield the point, declaring IL
heir intention to deadlock the leg
stature and keep it ia indefinite
session unless the opposition" to