The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-01-02
Land BANKS Are
AENACED BY new
LAWSAYSQUAMME
Head of st. Paul Institu-
ton Protests Against
Senate Amendment
WOULD PREVENT
REFUNDING LOANS
Says IS Per Cent of Appli-
cations For Loans
Would b Barred

Minneapolis, Jan. Federal farm
loan banks virtually win be put out
OF business il congress passes the
pending bill, offered to grant relief
TO the banks, retaining the amend
Tnent which has been adopted by the
senate, according to Pres. T.. Nc.
Quamme Of the st. Paul Federal
Land bank. Mr. Quamme, in a state
ment today, said IS per cent of the
loan applications now being received
would be barred by the amendment
to exclude refunding loans. The
statement in part follows:
There has been a little misun-
Outstanding as to the provisions of
the bill now before congress devised
to grant relief to the federal land
banks. The bill as originally intro
duced provided for a fund to take
care of the present commitments of
the twelve federal land banks. It
also provided for another fund,
known as a revolving fund, to take
care of future commitments, which
would permit federal land banks to
work out system to dispose of their
bonds. IL the law is passed as re-
ported out from the house banking
and currency committee, it will give
the relief asked for. The amendment
adopted by the senate, however,
changes all this. The senate amend
ment is as follows:
Until all bonds so purchased by
the secretary Of the treasury have
been so redeemed or repurchased, no
loans I'm addition to those now APP
proved shall be made by the federal
land banks, except under special
rules prescribed by the federal farm
loan board. limiting further loans
from funds derived from the treas
ury to those made for the sole pur-
pose Of increasing food products"
Quotes From Record.
AS to the real meaning of this
amendment, let me quote from The
Congressional Record:
MIR. McCumber-May / ask the
senator a question. Suppose a farm
er has every acre of land on which
the loan is made. that is available,
under cultivation and there is q
mortgage upon IL bearing per cent
interest. He cannot cultivate any
more simply because he has no more |
to cultivate. Would the amendment |
OF the senator from Massachusetts |
prevent the man from securing a |
new loan at a lower rate of interest? |
Mr.. Weeks-It would, as long as
the government is advancing the |
money
Mr.. McCumber-ThenI think we
ought to vote against the amend
ment.
MIR. Gronna-Already approved. |
No further loans can be made unless |
they are new loans; in other words, |
IL the farmer owes a mortgage debt, |
he cannot get the money from the |
government to refund ii, even though /
his present loan max be foreclosed |
upon. Is not that the effect Of the |
"Mr. Weeks-If the man demon
strates that ii would increase food Il
products by refunding the loan, he
can get the money. If he cannot do 4
that, he cannot get 1t.
The meaning OF this amendment i
Is plain. II 1t is made into law, the
banks win be allowed to close the
loans that were approved up to Dec.
!. All loans approved after that date
viii be barred under this provision
unless they are new loans on lands
that have not been previously mort
gagged. New loans which would be
used for the purpose Of paying up
Did mortgages past due or coming
Tue cannot be made. Our experience
IN the Federal Land bank Of st. Paul
Is that IS per cent of the applications
FOR loans are made by borrowers who
ieslre funds to pay off a prior mort
gage. IL this amendment should be
made into law, the effect would be
practically to close down the federal
and banks.
a law of this kind would be moth
ng short of q calamity. The farmers
reed money now to pay up matur-
ng mortgages. Il Is not just a ques-
ion of reducing the rate of interest.
With the disturbed financial condi-
ons in the country 1t is hard to sell
and il is going to become
more difficult. The farmers need the
and bank system now more than
,ver, and the banks should not be
sampered in any way. Instead they
should be helped, SO they can meet
he conditions as they arise"
FIavo -four, creamery white. deIic-
Gus flavor. goes further. Phone SO.
-Advt-