The Butler weekly times and the Bates County record. (Butler, Mo.) 1918-1950, 1919-07-10
Liberty Bonds and the Federal Farm
Loan Act.

Il SesO <
II protest against the econumie
. crimes that are committed III thu
name of the Federal Farm .car
Act" said Congressman L. T2Nc
Fadden Of Pennsylvania, when inter
Viewed on his speech printed Ia the
Congressional Record. The farmers
States will be opposed to the Nh Eek
|emption of the Federal Land bank
bonds when they know the truth
Loans are limited by law to no,
600. No pretense, or only pretense
is made to observing this limitation.
Within a few months after the law
went into operation, the Federal
Farm Loan board published ! ruling
permitting a man to deed an undi-
vided half interest of his farm to- his
wife and then permitting them to
jointly borrow $4,000 by giving two
notes and one mortgage. Such a
loan is reported as two loans. BY
taking in more relatives of friends,
land owners now borrow as high sas
thirty and forty thousand dollars.
Usually quit claim deeds are used and
the nominal consideration is one dol
lar and the land is redeeded to the
original owners as soon as the loan
is obtained.
"The law was enacted to aid men
of moderate means, to reduce tenan-
try to increase production, and to
render assistance to men who Guilt
vate their own farms; l was mem
Der of the committee which framed
the law and know what am talking
about" the congressman continued.
Loans are now made to landown-
ers who rent their farms through
agents. Thew call the lease a con-
tract of employment, but the wages
of the employee are share of the
crop and there is no provision for
paying him any wages if the crop
fails. The contract is subterfuge.
Look at these photographs" said
the congressman. ".of a peat bog in
Iowa on which loans of over 100000 |
were made to firm of spectators by |
using six deeds that did not pretend |
to represent actual sales as no rev.
enue stamps were affixed. Look at |
the big holes now filled with water,
that were burned into the peat in
dry time. What do you think of that
as productive farm land cultivated by
the owner? 1t does not produce
grass for either hay or pasture.
"Our enormous war debt, the
grinding burden of heavy taxes, and
the market price of Liberty bonds are
great problems that now slap every
citizen in the face. When the tax
payer evades paying taxes, he robs
all other tax payers by that evasion.
The most important effect of the
Federal Farm Loan act now is that
it helps few taxpayers rob other
tax payers.
"Liber bonds are now below par,
some of them down nearly to "a.
The Federal Farm Loan board
through its agents now advertise
$54, ooo, 900 of its bonds at 100 I-s
Liberty bonds are not entirely free
from taxation. Land bank bonds are
tax free. Liberty bonds were bought
b. patriots to help the nation. Land
bank. bonds are bought by investors
TO evade taxation. Joint stock land
bank bonds are now selling at 1o2.
They are entirely tax free. They are L
issued b privately owned banks to t
furnish money to be used by real es- S
ate dealers and farmers for private v
personal business. There is big de- t
nand for these bonds because the
,wners do not have to pay war taxes
IN them. There are twenty-one joint
;tock land banks, nine of these have
,een chartered since the first of April n
# this year. The twenty-one joint 8
took land banks and the twelve Fed Il
raj Land banks are thirty-three fac t
cries to which rich investors can {
leliver their taxable securities and II
ave them made over into tax free 6
and bank bonds. In the rush to lie
void war taxes two hundred such in I'll
titutions are likely to be doing bust e
ess before the end of this year. "
here are applications now on file
or about 100 more joint stock land 1,
anks. tr
Competition of these tax free Sc FL
urities can have no other effect but
0 depress the price of Liberty bonds. +
Congress owes its first duty to n
wners of Liberty bonds. III
"The bonds of Federal Land banks Ew
nd of joint stock land banks should .;
e subject to taxation the same aslc'
Their comemrcial securities" lp
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Hoover Resigns Craftsmanship of