The Raymer enterprise., 1920-11-25
WHO KILLED THE
LAND BANKS

tically out OF operation today They
do not dare continue loans until the
Supreme Court Of the United States
decides upon the constitutionality OF
the law which created them The
lower court has decided in favor OF
the land banks and, in our opinion
the Supreme Court will make the
same decision That is not, how
ever, the opinion OF those who are
trying to kill the system which has
resulted in lowering farm mortgage
interest rates from to 2 per cent
II M Heckler. chairman OF the
membership committee of the Farm
Mortgage Bankers Association. in
an appeal for membership admits
what those who have followed the
fight against the land banks suspect
ed. A portion Of his statement fol-
lows.
Most of US believe that the Su-
preme Court did not care to render
their decision, which | interpret to
be unfavorable 10 the land banks
but favorable to us. until after the
next election period
AT any rate the. Farm Mortgage
Bankers Association, l think. is di-
rectly responsible for the Federal
Land Bank and the Joint Stock Land
Banks not being in operation today.
and not being able to operate until
some time next year.
! am wondering II this fact alone
is not worth considerable more to
you than the small fee which we
charge for membership in the asso-
ciation.'
Why do the farm mortgage bank
ers wish to put the Federal Land
Banks out Of business? Because these
banks are practically the only COM
petition they have In the farm mort
gage business Without them they
are able to charge almost any inter-
est rates they desire. With them they
must take reasonable interest rate
they have succeeded in putting the
land banks out OF business tempOr-
arily and So have made many loans
during the past few months to far
mers who have found 1t necessary to
borrow money. These loans were
higher than they woull have been II
the Federal Land Banks had been
operating Mr. Heckler admits in his
letter that the profits thus made are
worth great deal to the mortgage
even though they. have but
a temporary rest from just and fair
competition.
II the Federal Land Bank system
Is killed. who will be the guilty par
ties? The mortgage land bankers,
on their own admission Nebraska
Farmer.
The above is sent to us by sub
seriber We do not question the
truth of the statements made II
gives date and place II 1t were fax
ed it would be easily disproyed. It's
truth or falsity may be easily estab-
lished For that reason II no other.
1t may be accepted.
1t may readily be conceded that
the banker is anxious to make his
money earn for him the highest rate
Of interest The farmer on the 9th
er hand. is seeing rates lowered, SO
is every other borrower. unless he
happens to have a surplus fund to
loan.
We believe that the farm loan
banks served good purpose and
we expect that whatever decisions Of
the courts may be, the law will be
amended to meet all objections and
again be in operation
Such an act may not suit banks
Of the above class, but the general
business will benefit there
by.
The above does not stand on par
ity at all with the quotation" pub
lished In the Colorado Leader. which
We took exception to
We believed then and still do that
the Leader quotation to be fake.
We are still waiting for hint as to
the origin Of tbe quotation We
made inquiry as near the source as
we could. We have had no reply
The selfishness OF bankers exists,
and needs curbing Bankers have
their faults, but that does not ;usti-
fy lying about them. In fact It
makes the lying foolish. as we'll as
wrong,
Mesdames Winterrowd. Adding