The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1920-06-11
STOPPED BANK
IS BROKERS' BOAST
Letter Suiirits Mcmhcrs for Farm
Mortgage Bankers Association on
These Grounds.

ntSt NITOUut&tS.
Minneapolis, MINI. --Roasting Of
what the Farm Mortgage Bankers
associate ion Of America had done to
wreck the Federal Land bank, and in
tying up millions in loans to 10000
northwestern farmers and thousands
Of others elsewhere in the United
States, ". II. Hccklcr, chairman Of
the membership committee of this as
ISOLATION, has written IA letter to hank
crS throughout the United States ap-
praing for further funds to carry on
the destructive work Of the bankers
organization.
The letter was Incorporated into
the Congressional Record (page 1887,
May l?,lA2O by Senator Harrison Of
Mississippi to show the activities Of
the association in fighting the FEEDER
al hank.
As Il result Of the suit Of the hank
erS' association attacking the conSti-
tutionality Of the federal hank, and
the refusal Of congress to give proper
aid. the federal bank has been forced
to discontinue making any loans OK
ccpt those approved prior to March l,
1920.
INTEREST RAISE FOLLOWED
As soon as tho federal hank an
nounced that it could not make any
new loans the bankers throughout the
Northwest Immediately raised their
interest rates from to 3 per cent,
adding 4 cash bonus Of , per cent and
upward. and demanding full maturity
on mortgage loans, Of l0-year terms
in many cases, according to f. G.
Quamc. director of the st. Paul dis
trict Federal Land bank.
While the suit. which comes up for
reargumcnt before the United States
supreme court October II, is pending,
the and bank can not sell its bonds,
through which it raises the money to
loan to farmers at 5is per cent. APP
peal was made to congress to aid,
and Il resolution was introduced SIM
ultancously in both house and senate
to authorize the secretary of the
treasury to buy land hank bonds of
/ $64 100000 to enable the land bank
to continue loans until after the de-
cision of the supreme court,
But the bankers association lobby
was active in the halls Of congress,
and the voice of Shylock sirens was
louder than that Of the needy farm
ers, so, by vote Of 14S to l2l, the
house of representatives cut down the
authorization to $26,l7l,225, which
will permit the land hank to complete
loans approved prior to March l.
1920, hut will not provide any money
for any loans after that date.
The senate banking committee, OF
which Senator Gronna of North Da-
kota is chairman. cut the appropria,
ton down to the same figure as tina,
voted in the house, and with the re.
solution thus weakened both house
and senate passed it, and it was latel
signed by the president, Thus the
land bank is virtually suspended un,
til after the supreme court acts.
INSULTS COURT
In his letter Heckler insults thu
supreme court by intimating that j,
is influenced by politics. Heckler, by
the way. also is manager of tn
mortgage department of the Wells
Dickey company of Minneapolis, ant
has been closely associated with thos.
interests which have been fighting tn.
Nonpartisan league program il
North Dakota, which has lowered in
terest charges in North Dakota, a:
the land bank has done in genera
Throughout the United States.
The letter, in part, follows:
"Iou will note the remarks in re
gard to the supreme court in the mat
ter of passing on the constitutionalit!
of the tax exemption feature Of tn,
land bank bonds. Most of US believ,
that the supreme court did not car
to render their decision. which I in
terpret to he unfavorable to the Ian,
banks but favorable to us. until afte
the next election. At any rate. tn
Farm Mortgage Bankers association
| think, is directly responsible for tn
federal land banks and the joint Stoc'
land hanks not being in operation to
day and not being able t. operat
until sometime next year.
Il am wondering if this fact alon
is not worth considerable more to !u
than the small fee i"r which "
chang" for membership in tive uS>t
citation, and ;.> i matter oi fact. don
\ you think that the :i>>oci :.tiun j., q
1 titled to support. both financial an