Omaha daily bee., 1920-12-16
Bankers Connive
With 'Drullllners,'
Farmers Claim
Nebraska FinanciersAid Stock
Statesmen Dispose of Worth.
less Securities, Congress
Head Charges.


Nebraska bankers have aided stocl
statesmen in disposing OF worthless,
or misrepresented securities among
farmers of the state. o. G. Smith
president of the Nebraska Farmers
Congress charged during his annua
address before the congress in the
Hotel Rome yesterday.
Il know of case in central Ne.
braska where man connected with
a bank called several farmers by
telephone to tell them man would
call on them with good PROPOSE
tion," declared President SmithA "He
Offered to loan them money to pur-
chase these securities. Later |
know positively he was given So
per cent OF the money garnered by
the stock salesman"
President Smith says there is
enough money subscribed by farm
ers for worthless stock each year ia
build two paved highways across
the continent. Discussing the Fed
eral Farm Land bank, President
Smith said:
Would Prohibit Options.
1T is to be dcplored that all
progress in the operation of the
Federal Land banks was stopped by
suit brought by the Bankers
Mortgage association attacking, the
constitutionality OF the banks. l
have been informed that if the case
pending is decided favorably to the
federal banks that plenty Of funds
are available to purchase the bonds.
The reloaning by banks again will
relieve the farmers who are unable
to obtain funds at reasonable rates
at the present time. This congress
should go on record praying for a
favorable decision in the case"
President Smith strongly urged
that the Nebraska congress demand
congress to enact a law prohibiting
the future option trading in all food
products, and more particularly in
wheat. He lauded the Volstead act
granting producers the right of col
lcctive marketing and the Truth in
Fabric Bill" He urged bitter oppo-
sition to Ralston-Nolan bill, which
imposes ! per cent direct tax on
all farms above the valuation of
$4,000, declaring the average farmer
has property valued at $35,000 and
would be compelled to pay a $3.50
tax each year should the bill be
passed.
No Rebuke Too Harsh.
Touching on the immigration
problem. he asserted that while the
present class of immigrants may be
fairly high, the millions which plan
to come to this country probably
include large percentage of unde-
sirables and some action should be
taken to guard against such
menace. He condemned in un-
measured terms prohteering, but
declared the purchasing public was
largely to blame for existing high
prices.
"The first and constant obligation
Of every citizen and of every organ
ization of citizens is undivided 10y
atty to our country" he said in con-
clusion. "Its institutions must be
protected and its traditions pre-
served and respected"
Commenting on Presid ent
Smiths charges against some coun-
try banks, ex-Congressman c. H.
Sloan, the second speaker at the
session, declared mo re-
bukc to bankers of the state who
have connived with stock statesmen
to swindle the farmer could be too
harsh"
Favors Marketing Bill.
Country banks should use every
influence in their powe- to protect
their depositors and their neigh
bors," he said. "If they don't &c
this they are avoiding their most
important duty"
Mr.. Sloan declared himself in
favor of the Nelson cooperative |
bill. which he says
"places in the power of the Amer
lean producer to organize for the
purpose of effectively marketing
their producrS. IN the form OF as
sociations or corporations, with or
without stock"
He urged the necessity of extract
ing duty on imported food products,
stating there had actually been 35,-
000, 900 bushels of wheat and flour
into America, largely from
Canada.
Attacks Nelson Bill.
Argentina sent its great cargoes
of corn to our eastern ports, car
ried it from 3 to S cents a bushel
in French vessels from Buenos
Aires, while Nebraska farmers were
obliged to pay from II to u cents
y carry their grain to the seaboard
ports" continued Mr.. Sloan.
"The American farmers need
preference at our ports of from 20
to Is cents a bushel for wheat and
from 10 to II cents bushel for
corn"
Like President Smith Mr.. Sloan
attacked the Nelson Tax bill for
levying q l per cent tax on farms
of more than $4,000 valuation. He
also scored "pamblinp in futures"