The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1919-05-09
0UAMME REPLIES
TO ATTACKS ON
FARM LAND BANK
SHOWS WHERE ST. PAUL INSTI-
TUITION is LOANING MONEY
FOR LESS THAN STATE CAN
INDEBTEDNESS DISTORTED
TOWNLY ORGAN HAS EVERY
ACRE IN NJ D. MORTGAGED
FOR 81. .50-HOW PLAN WORKS

ACRE IN N. D. MORTGAGED
FOR 81. .50-HOW PLAN WORKS
But the Federal Land Bank has
thus far reached ony small fraction
Of the farmers of North Dakota" says
the Fargo CourierNews, Townley's
daily newspaper organ, in a recent at
tack upon the federal land bank sys-
tenn "The average interest rate on
the states s309,000,000 in farm mort
cages is over eigth per cent" contin-
ued the Courier-News, editorially
THE governments rules are 80 strict
that most farmers cannot secure fed
eral loans. The state rules will be
more liberal, and without question the
state-bank's loans will bring down the
interest rate appreciably. At the very
least, it will enable many more farm
ers to secure cheaper money"
Quamme Makes Reply.
In reply to the Courier-News, E. G.
Quamme, president of the federal land
bank of st. Paul, in letter to the
editor Of The. Tribune has the fol-
lowing to say:
1.-THE Federal Land Bank Of St. Paul
was two years old on the first day of
May During this period Of operation
the bank has loaned $28,500,000 to
over II 900 farmers of the seventh dis
trict. OF this amount we have loaned
over $14,000,0O0 to over 5000. farm
ers in North Dakota. The rate of in
terest charged the first year of opera
ton was FIVE per cent, and during
the last year and at the present time
we are charging 5k per cent
do you consider the growth of the
federal land bank Of St. Paul slow ac-
cording to these figures? Have you
ever seen any other financial institu-
ton render such service and grow SO
rapidly? We must also keep in mind
that this was the organization period
of the bank. Not only did we have to
organize the bank and the system,
with all that this means to one who
understands, but we have also organ
lied and chartered over 500 farm
loan associations in the country.
very nearly half Of all the money
we have loaned in the four states Of
our district has been loaned to the
people in the state OF North Bakota.
This looks to me like we have been
rendering pretty good service to the
farmers of that state"
Always Opposed.
Townley, Brinton and other social
lists in control of league affairs in
North Dakota have always opposed the
federal bank system Where the
Townley press obtains its authority
for it's arbitrary in this state aggre.
gate $309, 100000 cannot be discovered.
This would mean an average incumb-
rance of SIS upon every tillable acre
in North Dakota, and the average as
sessed valuation of all farm lands is
less than that amount. It would mean
an average mortgage Indebtedness Of
81 so per acre upon every acre OF land
in North Dakota, tillable and until
able, cultivated and wild, and this, Of
course, is a condition which could not
exist. The tax commission has been
reticent when asked for an estimate
as to the total mortgage indebtedness
of the state, but it has placed its Wild
est guess at not much more than
third of the aggregate asserted by
Townley's organs, and this would
mean an average incumbrance OF IS
per acre on each acre Of tillable land
in the state.
The Nonpartisan press statements
in remortgage Indebtedness in the
state have never been challenged, and
the league organs, organizers and agt-
tators have boen permitted to build
up this myth without question or, cor
rection. '" '.,.'s:si % a sa ). *s.|sss
=, Can't Lower Rate. 7si
The Bank of North Dakota will have /
$10,000,000 to be furnished by real
estate bonds to loan on first farm
at par, and it was admitted In both
houses of the last assembly that the
state cannot hope to dispose Fof these
securities for much less than seven
rr- nnf