Omaha daily bee., 1919-05-22
LOAN men Reject
PLAN OF FEDERAL
HOME LOAN BANK
Charge Made That Proposed
Change Would Place Bust
ness in Hands of Poll
ticians in Washington.

tlCidtlS III washington.
The Nebraska League OF Saving
and Loan associat tons did not en-
dorse the co-called national move
ment for federal home loan bank,
at the twenty eighth annual meeting
at the Hotel Fontenelle yesterday
Two resolutions, one to endorse
the proposition as embodied in ;
draft to congress, by representative
of the National union, and anothe,
calling for vote of confidence t.
w. R. Adair, president of the Ne
braska league, as member of thu
subcommittee of the national or
ganization, to draw up the fina
draft for presentation to congress
failed.
Charges of political panhand
ling" Socialism, communism" o,
an attempt to take the loan bust
ness out of the hands of presen
stockholders and officers and place
it in the hands of politicians a
Washington, were made by A. H
Kidd. Beatrice, and Paul w. Kufns
Omaha.
Nose Too Far in Tent.
THE time has passed." A. H
Kidd said, speaking after long ad
dress by E. L. Kessler, Charlotte
n. C., president of the United
League of Lodal Building and Loas
Associations, in which salient feat
ures of the new plan, as drafted in {
bill ready for congress, were ex.
planned, when it can be said to yor
that you must do this and you mus
do that
1T looks as though the camel i.
getting his nose a little too far ii
the tent. The lesson of the fedora
farm loan bank has taught US tina,
the government had to purchase the
loan bonds to keep it up. Would j,
not be the same under a home loar
system?
THE United States, the secretary
of the treasury at the head, would
be in absolute control of our bust.
ness. Men not at all interested ir
the loan business would be in exec.
utive positions, and the plan of the
bill as at present drawn allows all
important positions to be made by
appointments.
Simply to Supply Jobs.
my observation has been that the
federal farm loan bank is largely
nothing more than an organization
to provide positions for a lot of men
who could not have otherwise sue
ceeded.
"The United States government
should be prohibited from purchas.
ing these bonds, yet that inevitably
is the next step. There is nothing
in this bill that presents it.
TO issue bonds with no actual
buyers will mean legislation to pro-
vide for purchase and eventually
the government must buy.
This plan is merely a step toward
socialism and communism in bust
ness. 1t does not stand for indi-
vidual effort. l don't believe there
is so great a demand for funds in
the loan business of this country
that we must appeal to the govern.
ment. Let's keep the loan business
out of politics"
E. L. Kessler, Charlotte, N. c.,
president of the national union
urged that the home building idea
was spreading by leaps and bounds
and that where the poor and handi-
capped most needed help, funds
were not available.
"You have money ap1enty here in
Nebraska" he said. "But what OF
the thousands in other parts of the
country who have not? What if the
time should come when you will
need money? l earnestly hope that
the day will come when there will
be such demand for homes in Ne
braska that the loan association OF
the state will be forced to borrow"
Mr.. Kessler asserted that there are
70,267 building and loan associations
in the country, having 3,338,612
stockholders and total assets of ST.
76o, 142,175. The annual business
for 1917 was $1,220,000,000.
Adair on Committee.
1--WE are not presenting this prop
osltion of our own initiative" he
said. The Department of Labor, at
Washington, through its secretary
on national investments, Franklin T.
Miller, approached officers of the
national organization asking that a
draft of bill that would suit loan
associations of the country be drawn
in collaboration with the Labor de-
partment, for presentation to the de-
partment. The first draft, drawn up
by Our expert, K. V. Haymaker,
Detroit, was rejected, and the sec
Cpd draft also failed to meet the
need.
".As result we have appointed a
subcommittee with your president,
w. R. Adair, Omaha, as a member,
along with O'Connor, Hennessey,
New York, and A. L. Linnet, New
Jersey, to meet in July in Washing
ton and reconsider the work of the
drafting committee and draw up the
final bill.
"The Department of Labor has in
formed US that unless we can agree
on proper bill the government will
go ahead with its own plan"
/. L. Matthews, Fremont, presi-
dent of the loan association Of that
city, addressed the members, as
serting that Nebraska laws would
not permit operation of the plan as
now drawn up.
Former officers were reelected as
follows: W. R. Adair, Omaha, presi-
dent; E. 1. Havelone, Beatrice, first
vice 0rasidenf. r T M,44La,,,e T..