The circle banner. [volume] (Circle, Mont.) 1914-1939, 1920-01-16
HUGHES SAYS AID
TO FARMING LEGAL
Declares II Duty Of Government
to Protect Nations Food
Supply.
TAX EXEMPTION NECESSARY
Former Justice Of Y. 8. Supreme Court
Makes Powerful Argument Defend
Ing constitutionality Of Federal
Farm Loan Act.

farm Loan ACT.
That the general welfare of the na
| ton demands that the government
sfIall encourage, aid and protect agri
culture by whatever means and t
whatever extent may be necessary t
| safeguard the nations food supply
even though those means Of aid ant
protection shall include the appropria
ton OF government money and the ex
tending of government credit, or ever
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 tht
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 legislate 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 gfasshopper-
all for the general welfare.
He showed how the government had
provided for the distribution Of seeds
Of new and useful varieties and how 1t
had provided for the Introduction and
protection Of insectivorous birds and
how 1t had provided also for the estab-
llshment 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 in
formation as to the proper breeding
and as to the diseases Of domestic anil
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 1t as proper
Of government to encourage. I
aid and protect agriculture, and he
held that 1t was the duty Of the gov
eminent to guard against any shortage
n;the food supply Of the nation. There
'ore, he said, when this great under
ying industry stood In need Of funds
or operation or for development, It
vas clearly the duty Of the govern
nent and clearly within its rightful
powers to provide the means by which
he necessary funds could be placed at
he disposal Of those engaged In the
cultivation Of the soil.
Here is a great activity" he said,
which has received financial support
rom the foundation Of the govern
nent.
Our position is that the federal gov
rnment was competent in the applica-
lon Of money and investment Of |
aoneys In the stock Of the federal
and banks, to organize these banks
nd to invest moneys In their stock, to
orrow money, and to loan money for
hese purposes, and to provide for the
ssue of bonds for these purposes. Be
1g competent to do this, the govern
rent could organize whatever agencies
vere necessary and convenient and !
ould authorize them to borrow to do
lis thing for the government"
Bonds Had to Be Exempt.
Mr.. Hughes contended that as con-
ress could create the land banks as
and clothe them with
over to lend money and to issue
onds, the government could, Of course,
rotect these corporations and these
,nds issued by them from discussion
. impairment by any action. He said
lat "as the power to tax was the
over to destroy" the government. Of
,urse, had the right to exempt these
)nds from taxation. And this rule,
, said, had particular force in this
ice, AZ the bonds Of these banks had
be sold in competition with other
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