South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-12-20

mers who heretofore have been un-
( able 20 borrow money on any terms
I These bank presidents seem to have
( lost sight OF the fact that their in
I stitutions are charged particularly
with the duty of serving the small
I borrower They forget that il was
3 &c protect the former of small
means in this opportunity TO bor-
row that the size of the loans 70 be
made by federal banks was limited
to $4,000. These federal land bank
presidents appear tot have a big
3 bank and TO do a big business and
/ to increase their business rapidly by
1 making big loans to few instead Of
making small loans 70 a great num-
} Der
To be sure, that is easy banking
I for the banker and makes quite d
\ fellow of the president of the bank
/ If he can get away with il. But the
/ method is quite contrary 10 the
/ spirit Of the law and TO the intent
/ of those who conducted the agitation
and the investigation which resulted
| In the creation of this system Of
/ farm land banks.
/ Sen. Hitchcock's proposal 10 in
! crease the maximum loan which
/ may be made 10 "a single farmer
from $4,000 to $4,000 will have
determined opposition from two
/ sources. The group most concerned
includes many economists, publ
I cists and progressive farmers. These
/ fear that the heavy borrowers, who
/ engage in learge farming opera
I tons. once the maximum is inCreas-
cd TO $4,000. will rush i'm and alb
I sorb all the money that the federal
\ land banks are able 10 assemble for
, agricultural investments. and thus
/ leave tho small borrower and the
I man Of small credit without either
money or credit This, they say.
the first great purposo of the far
mers OF the law would be defeated.
other Opposition.
Another group which viii oppose
this bill includes some of the joint
, stock land bankers, whose inStitu-
/ tions also were created 10y and are
operating under the federal farm
loan act. Their opposition is In q
. measure selfish. because they feel
that the federal land banks would
at once enter the field now Occu-
/ pied by the Joint stock land banks
They predict that the federal land
banks would become competitors In
. the field where larger loans are
made to the, heavy borrowers. Some
of the Joint stock land banks do not
/ object 10 this competition. Appar-
, emily. however. the larger number
would rather have this particular
field entirely 10 themselves.
Nobody expects that the bill "a
wipe out the joint stock land banks
! 10 receive serious consideration
Most members Of congress recognize
that the federal land bank being a
/ cooperative concern Is conducted
necessarily on "A plan which does
/ not make its benefits available &C
all farmers. Many farmers are
strongly individualistic and accus,
toned 10 standing on their own feet
Congressman generally realize thai
10y all means the larger number OF
II American farmers are not yet CO.
II operators. though they may be some
day. Cooperation is something de
| signed 20 help the man OF small
means. As II works out in connec
tion with federal land banks. "A farm
] loan association is organized and
every member OF the association
pledges his credit with all Other
members 10 secure any loan made C
any member of the association
, Furthermore. the federal land bank
cannot lend 20 an Individual. l