The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1920-01-30
Declares 4 Duty Of Government
g Protect Nations Food
Supply.
tx EXEMPTION NEcEssla
Former Jussios q Y. :. supreme Court
aalsss Powerful Aroumsnt Defend
- constitutlenaiIty Of Federal
Farm Lean Act.

Whatever extent may be necessary to
safeguard the nations food supply.
even though those means Of aid and
protection shall include the appropria-
ton 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 continuous disbursement Of
public money in aid Of agricultural de-
vel0pment. He showed how, while
congress had not attempted to operate
farms and had not stepped into any
state to legislate as to the use of farm
lands, still congress had provided in
formation, had disseminated instruc-
tons, 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 the government had
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-
lished to study and to disseminate liz
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-
have comprehensive information as to
rainfall and weather representations.
Protecting Nations Food Supply.
From all this he reasoned that the
government recognized it as 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
In the food supply Of the nation. There
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 q great activity" he said,
switch has received financial support
from the foundation Of the govern
ment.
..Our position is that the federal gov
eminent was competent in the applica-
ton OF money and investment OF
n,onevs 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 ana
could authorize them to borrow to Go
this thing for the government"
Bonds Had to Be Exempt.
Mr.. Hughes contended that as con-
gress could create the land banks as
/ cornorations and clothe them With
mower to lend money and to issue
bonds. the government could. OF course
nrotect these corporations and these
bonds issued by them from discussion
or impairment by any action. He SAID
that s.as the power to tax was the
newer TO Destroy" the government, Of
| coursc. had the right to exempt THESE
honds from taxation. And this rule
he said. had particular force In this
case as the bonds Of these banks hao
- ha sold in competition with othe1
| tax-exempt securities, and that with
| ont their being tax exempt money
con,d not be secured for the farmers
: low rates Of interest. To help tnt
rsrmer the rate had to be low. and c
| esst the low rate the bonds had to D
/ exempt from taxes.