Evening star., 1920-03-06
DEADLOCK over
farm LOAN BILL
Senate Amendments to
House Measure HaIts Con-
sideration, Temporarily.

Senate amendments to House Dill
amending the federal farm loan act IN
certain administrative particulars
have caused a deadlock. temporarily.
over this measure. The House has re-
jected the conference report on the
bill, and so far no further steps have
been taken TO bring about an agree
ment.
The House raised objection par
tlcularly to a Senate amendment
which would authorize the levylng OF
assessments by farm loan boards upon
farm loan borrowers as well as upon
applicants of not to exceed l per cent
to pay the salary of their local secre-
taPy. treasurer and other officers and
agents of the local association. OPP
ponents Of this provision hold that
the law was designed to relieve the
farmers Of the country from paying
commissions to local loan agents and
companies.
Another Amendment Opposed.
Another amendment which caused
considerable opposition would permit
a farmer to get a loan to iiquidate in
debtedness previously incurred with
out any limitation upon what that in
debtedness may have been incurred
for. Under the existing law such in
debtedness must have been incurred
for purchase of land for agricultural
purposes. the purchase of equipment
or to provide buildings for farm pur-
poses.
Warning that the cooperative part
OF the federal farm loan system will
be crippled. il not killed. because the
House voted down the conference re-
port is given by Chairman Plat of the
House committee on banking and cur
rency ana confirmed by members of the
farm loan board.
1t should be explained that the CO.
operative system provides twelve fed
sral land banks which obtain their
fortgages through farm loan asso-
Citations organized in counties, usually
one to each county. These associations
are merely groups of farmers who are
borrowers and stockholders in the
farm loan associations Each associa-
fion has expenses for examining land
for mortgages and for salaries of the
secretary -treasurers. though in many
cases the secretary ry-treasurer serves
without pay. as they are often officers
OF some bank.
The growth and development of the
farm loan associations. il is stated,
depends largely upon the amount of
work done by each secretary-treas-
urer, and as these associations grow
and demand more time from that
Official 1t becomes necessary to have
a salaFied and efficient secretary
treasurer.
Senate Provides Legal Authority.
The Senate amendment provided le-
gal authority for the levying of small
charges not to succeed l per cent on
applicants for loans. Such a charge
as this has constituted the only prac-
tical means of raising funds. Chair
man Platt points out, and 1t has been
the general method in all the farm
loan associations up to this time, but
without legal authority.
The only method provided by law.
he explains, is an assessment on all
the n en- bers and no association OF
any oRfnf tan be expected, he argues.
to ess3asethe members already in to
pay the expenses of bringing in a
new member, who pays nothing. The
lSafversh3f and only practical pro-
ceduFe. Chairman Platt feels, is TO
maze some charge on the new men,
sFNe cchSrge that has been made up
toetlh4< time. however. Is entirely
HfEfodeowarrant OF law. and II Con-
Sfese-fefces the farm loan board TO
pf0Nb7t. r the farm loan associa.
tlO6ac will practically, cease to func-
t1eAS Mr.. P1Att warns, unless they
caAf hid men phfla nthroptc enough To
k0fk for them without pay.
sfhis would mean that the system
Witch has been increasing its loans
by some $14,o00.0O0 a month will OBJ,
ts,r very few new loans and will
cease to beneit the small farmers 1or
whose benefit the cooperative system
vas chiefly organized