The Calhoun chronicle. [volume] (Grantsville, W. Va.) 1883-1984, 1920-01-08
HUGHES SAYS AID
TO FARMING LEGAL.
Declares it Duty of Government
to Protect Nations Food
Supply.
TAX EXEMPTION NECESSARY
Former Justice Of U. S. Supreme Court
Makes Powerful Argument Defend
ing Constitutionality of Federal
Farm Loan Act.

mat the general welfare of the ma
ton demands that the government
shall encourage, aid and protect Ggri-
culture by whatever means and to
whatever extent may be necessary to
safeguard the nations food supply,
even though those means of aid and
protection shall include the appropria-
tion of government money and the ex-
tending of government credit, or even
the lending of government moneys,
was the contention of former Justice
of the Supreme Court Charles Evans
Hughes, when he appeared in the fed
eral court at Kansas City as one of the
attorneys to defend the constitutional
ity of the federal farm loan act.
Governments Duty to Aid Farming.
Mr.. Hughes pointed out that from
the earliest history of this nation there
has been a continuous disbursement of
public money in aid of agricultural de-
velopment He showed how, while
congress had not attempted to operate
farms and had not stepped into any
state to legiS' tie as to the use of farm
lands, still congress had provided in
formation, had disseminated instruc-
lions, had distributed seeds, and had
supported in every manner which was
deemed wise, the great national inter-
est of agriculture. He told how the
government had sought to protect agri-
culture from great pests such as the
gypsy moth, the brown-tail moth, the
boil weevil, or even the grasshopper-
all for the general welfare
He showed how tho Il
provided for the distribution of seeds
OF new and useful varieties and how it
had provided for the introduction and
protection of insectivorous birds and
how it had provided also for the estab-
lishment and maintenance of labora-
tories for experiments in agricultural
chemistry. He told how later the bu-
reau of animal husbandry was estab-
Hshed to study and to disseminate in
formation as to the proper breeding
and as to the diseases of domestic ami
mails. He told later of how the
weather bureau was taken away from
the army and put in charge of the de-
partment of agriculture so that the
farmers and all interested in the pro.
duction and distribution of food might
have comprehensive information as to
rainfall and weather Representations
Protecting Nations Food Supply.
From all this he reasoned that the
/ government recognized it as a proper
function of government to encourage
aid and protect agriculture, and he
held that 1t was the duty of the gov
eminent to guard against any shortage
90 ,,
fore, he said, when this great under
lying industry stood in need of funds
for operation or for development. 1t
was clearly the duty of the govern
ment and clearly within its rightful
powers to provide the means by which
the necessary funds could be placed at
the disposal of those engaged in the
cultivation of the soil.
Here is a great activity" he said.
(which has received financial support
from the foundation of the govern
ment.
"Our position is that the federal gov
eminent was competent I'm the applica-
ton Of money and Investment of
moneys in the stock of the federal
land banks, to organize these banks
and to Invest moneys in their stock. to
borrow money, and to loan money for
these purposes, and to provide for the
issue Of bonds for these purposes. Be
ing competent to do this, the govern
ment could organize whatever agencies
were necessary and convenient and
could authorize them to borrow TO do
this thing for the government"
Bonds Had 20 Be Exempt.
Mr.. Hughes contended that as con-
gross could create the land banks as
corporations and clothe them with
power TO lend money and to issue
bonds, the government could. Of course.
protect these corporations and these
bonds issued by them from discussion
or impairment by any action. He said
that "as the power to tax was the
power to destroy" the government. OF
course bad the right to exempt these
bonds from taxation. And this rule.
he said, had particular force I'm this
case as the bonds o! these banks had
~ be sold I'm competition with other
tax-exempt securities, and that With
out their being tax exempt money
/ could not be secured for the farmers
at low rates Of interest To help the
farmer the rate had TO be low, and to
get the low rate the bonds had to be
pvnrnnf from, tao