Capital journal. (Salem, Or.) 1919-1980, 1920-01-28
PRIVATE FIRMS SEEK TO
DISRUPT FEDERAL BANKS

Sounding warming that move-
ment is on foot to disrupt the federal
farm loan system, and charging the
delegates in attendance here to the
Oregon state association of the fed
eral farm loan associations to be wary
and to strive against this for the
maintenance of the system. A w.
Hendricks, president of the Stock
Land Bank Of San Francisco, spoke
at the Hotel Marion Wednesday noon
The delegates to the convention were
guests of the Salem Rotary club at
the luncheon.
Jealous private bankers, more par
ticularly in the east than on the coast
Mr.. Hendricks asserted, who have
been deprived of some OF their usual
profits because of the operations of
the federal farm loan organization,
are working to break up the system.
Growth Is Traced
The birth of the federal farm loan
system, from the time the question
was first agitated 20 years ago, was
recounted by Mr.. Hendricks. He told
of the final passage of legislation
creating the system, and of the strug-
gle 1t has had during the four years
of its existence.
1t was discovered years ago, he
said, that the agricultural Develop
ment of the United States was not
what 1t should have been. Investiga-
ton showed that farmers were unable
to produce as they might because OF
financial embarrassment. This furn-
ished the foundation on which was
based the arguments for the federal
farm loans.
Joint Movement Opens
The federal land bank, a joint af-
filiation of the farm loan system, will
commence the appraisal of lands in
Oregon within two or three weeks,
Mr.. Hendricks said. This bank will
make loans to farmers of from s1O,-
600 upward The nominal rate OF in
terest charged makes this boon to
the man struggling with undeveloped
farms, he said.
The functions of the federal farm
loan system, and the aid 1t is lendingl
farmers in the general agricultural
development Of the nation was cited
in speech by ID. G. O'Shea, president |
of the federal farm loan system, with |
headquarters in Spokane. Mr. O'Shea
said that 80 percent of the homes in |
the United States are not owned by
the persons residing In them, and If /
he farm loan system can reduce this
figure 1t viii have accomplished |
much for the future Of the nation.
Because" he declared, "a man |
will wear his own collar rather than |
the other fellows, and the man with |
his own home will show it greater ac-
cord than the foreigners who might
come into the country to win his sup
port"
Replying to Mr.. OShea, william
M. Walton, cashier of the Ladd &
Bush bank, said that the stock land
banks, and the federal farm loan
system can do much for a communi-
ty and he expressed the wish that
both branches of this service would
be solidly established in Salem.
Because of the unselfish assistance
by the government through
the farm loan system activity of the
state rural credits board have been
lessened, Thomas b. Kay, of the
Thomas B. Kay wooden mills, said.
The readiness Of the farmer to ac-
cept the cheaper loan offered by the
government has kept the state loan
work within half mill
lion dollars
Great Future Presaged
Mr.. Kay predicted extensive devel-
opment of land in Oregon, and a
much enlarged popalation through
he medium of assistance the farmer
,an get in the federal farm loans.
The first step toward the estab-
ishment Of stock land bank branch
lere was announced Wednesday in A.,
he appointment of G. A. Arpke, a
'ealty dealer, as appraiser. His ap-
,ointment was made by the federal
arm loan board.
The convention continued through
)ut the afternoon.