The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-02-21

IA
small loans, was shown before The
Committee as a reason for Govern
ment aid for the. system. The Law
now provides that loans may be made
as small as 500 and as large as
i $4,000. When the law was under
consideration strong arguments were
made in favor of limiting the loans Jo
i $4,000 IN order to help more farmers
needing financial aid. It was then
urged that the $4,000 man, with
$4,000 worth of property, did not
need Government aid.
i Would Aid Rich Farmers Only
The Federal Farm Loan Board
now recommends to Congress that the
law be changed to prohibit all loans
of less than $500 and to raise the
limit of large loans to $4,000. The
! law requires that loans shall be Sc
cured by mortgages on farm land
worth twice the amount of the loan.
Ii the law is amended as the Board
recommends, a poor man, whose land
is not worth 81 900, will be unable 70
borrow a penny from the Federal
Land Banks. The very people whom
| the law was intended to help ana
who most need the Government aid
will be absolutely forsaken.
i On the other hand the tax exempt
government-aided Federal Land
Banks will be neabled to make SEE, 900
loans to persons whose farms must
be worth at least $4,000, while the
taxpayers who own other farms, or
are engaged in other occupations, will
be obliged to pay part of the ex-
penses.
QUESTION No. 5.-Do you think
that all poor men who cannot qualify
with land worth ST 900 should be de-
priyed of the benefits of the Federal
Farm Loan Act?
Question No. 6. Do you think that
men rich enough to own land worth
$4,000 ought to be helped by Ameri-
can taxpayers to get $4,000 loans at
the back door of the National Treas
ury, when Liberty Bonds are selling
below par?
Secretary McAdoo's Statement:
In his annual report, made public
December 4th, and written before his
resignation was announced, Mr.. Nc
Adoo, Secretary of the Treasury, also
chairman of the Federal Farm Loan
Board, made the following reference
to the Federal Farm Loan system:
"The existence of this system oper-
ated under government supervision,
granting long-term loans at reason
able rates of interest, has unquestion-
ably saved the farmers of the United
States from many exactions, fore
closures and denial of financial &C
commodations during this period. The
system has been a harbor of refuge
for the borrowing farmer. Through
its competition with other loaning
agencies it has reduced interest rates |
almost everywhere in the United |
States and has saved the farmer III
large measure from those financial /
troubles which otherwise must have I
beset him It has constituted the
greatest governmental agency for
the basic industry Of the t
United States-that of agriculture I
Are Others Entitled to Credit?
You as banker are well informed I
about conditions in your locai1Cy L gu I
know about the work of the agricul- +
tural colleges; the activities of the +
success OF the banker and farmer
the splendid work done By /
$4,000 members of the boys and
girls farming clubs (these boys and
girls clubs raised 100000 worth
OF agricultural products last year, ;;
the development of better farming by I
county agricultural agents; the eff /
feet of high prices in stimulating pro- /
duction; the patriotism of American /
farmers, who answered the appeal to
produce more food to help win the
war.
You know whether or not the bank 4
ers and others tried to take advant-
age of war conditions to charge exor-
oitant rates of interest to farmers.
There are over six million farms in
The United States. The Federal Land
Banks have made loans on about one
per cent of these farms. Many peo-
pie think other agencies and causes
we're mainly responsible for improved
conditions and increased production.
1t least on SO per cent of the farms
which have not received Federal Land
Bank loans.
!. QUESTION No. docs your OBJ
;e1vation in your locality lead you to
hink that Secretary CcAdoo was
warranted by the facts in attributinp
% much credit to the Federal Land
Banks ?
How to Help
You can do patriotic work to help
he sale of Liberty Bonds for the
fifth and sixth issues, and help to-
yard putting Liberty Bonds back to
oar, by writing to the congressman
rom your state, asking them to +
mend the law to put Federal Land Il
Sank bonds on the taxable list with L
Liberty Bonds and other taxable Sc /
urihes. Letters from your friends Z
0 Congressman will also help. 4
A printed list of Congressman of,
our state is herewith enclosed for
he convenience of your stenographer.
The Law Unconstitutional. Il
Many leading lawyers are of the 4
pinion that Congress has no consti- /
utional right to make the bonds Of
owned Federal Land Banks Il