The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-02-21
MOVEMENT ON FOOT
TO KILL FEDERAL
LAND BANK
Continued from last week.

ers and farm mortgage brokers, in a
campaign for legislation to cripple, |
if not absolutely kill the Federal
Land Ban.l When the Federal Land
Bank was established, it was never
meant to succeed and at the time the
law was passed its chance to succeed
was remote because the bonds of the
bank were not attractive as an in
vestment. But the war came on, and
the whole credit system of the world
revolutionized. Because of the war
and consequent issues of Liberty
bonds and revolution in taxation, the
tax exempt bonds of the Federal
Land Bank, instead of being unattrac-
tive and hard to sell, are now the most
attractive bonds on the market and
they sell like hot cakes, thereby as
surfing plenty of money to take up ali
loans as fast as they are applied for.
This means that in the course Of al
few years, the loan sharks will be
put out Of business and the farmers
emancipated.
II this tax exemption is repealed
now, the bank is ruined. And the ar
gument advanced in regard to the
unfailness of the competition OF land
bank bonds with liberty bonds is 4
nice argument of the bankers In or
der to kill the land bank and lana
bank competition.
This is the first legislation ever
passed in the United States that real
" benefits the farmer, and the bank
ers say it must be illled.
The story is long but read 1t all:
It is of the utmost Importance that
every possible effort be made to main
tain the national credit and keep up
the price of Liberty Bonds.
The total amount of Liberty Bonds
that have been issued is S16,9l4,oz9,
$50. They are now quoted In the
stock market at an average price OF
more than 49e below par, entalllng a
loss to investors of over SIUo,ooo,ooo.
The change in the market pr1ce OF
mill on the dollar will make differ
ence in value of $16,974, 329.o5.
The Chicago Herald and examiner
December 23rd, said of the bond mar
ket. "The absorbing feature OF trad
inc on the New York exchange All
7through the wetia1 conferred on tns
weakness that continued in the hpef-
~ loan issues, which touched new low
records. Much surprise was IN evil
dence as to the cause OF the smart
liquidation and disposal OF the gov
eminent securities, and tnefe Me.'
many reasons advanced for enell
weakness"
The Indianapolis News of Satur
aaav December 21st, said of the loca
narket for securities After the mrs
Of the year investment bankers an!
brokers are expecting renewed ousi
ness in preparation for the spr1ng ca,
period when individuals will be u
5ae field for many tax-exempt secur'
ties"
The Herald Examiner, Decembc
2srd. on its financial page says
Another Liberty Loan must be noa'
ed within a few months. IL is mug
time the shackles were taken 1rof
American business in order that tn g,
country may be prepared flnancalt
and sentimentally to subscribe
On November l, 1918, the Nation;
Treasury held S55, 100000 of FEEDER:
Land Bank bonds that had been pu
chased by the Secretary of the Treas
urv to aid the Federal Land Bank
...nder the authority of the law passe
in January. 1918, authorizing the e.
pnediture of 5000, 100000 for tn;
purpose.
On December 10th, it was a
rounced that the National Treasul
had absorbed 100000 of FEEDER
Land Bank bonds since November
1918. and that it would continue
IL
flicting with the sale OF hlDer
Bonds.
The law of January, 1913, contain
"The Bonds of any Federal Lal
Bank so purchased by the Seer
tary of the Treasury, and held
the Treasury under the provlsl
of this amendment one year ait
the termination of the pending w
shall. upon thirty days notice fro
the Secretary of the Treasury,
redeemed or re-purchased by su
bank and accrued interest"
Federal Land Bank bonds are abs
hltelv free from income tax and
cal tax. All Liberty Bonds exec
the first issue of 312%o are subject
surtax. So great is the surtax
large incomes that 4A% Llber
Bonds yield only 1917 net incoi
when held by persons receiving
comes in excess Of $1,50O,0OO T
year, when owned in excess OF
maximum amount permitted to
tax-exempt.
L is reasonable to suppose that
tn. Government required tax-eHeIl
ieral Land Bank bonds TO De s.
he open market now, they Wo,
contributing cause toward
IN of the price OF LlDei
rise to an imports
future following
What eff
4 Bank boz