The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1921-10-14
WASHINGTON NEWS LITTER

WASHINGTON NEWS LITTER
D Exclusive to the Pioneer Express)
Congressman, George NJ. Young,
representing the Equity Coopera-
tive Exchange, ST., Paul, on Friday
filed with the directors Of the War
Finance Corporation the contract
covering the $4,000, ,000 loan, as
well as other papers required to
complete the negotiations for the
loan. This completes the negotia-
tions upon the part Of the Equity
which were initiated when John NJ.
Anderson, Benjamin Drake, and
Congressman Young met with the
government officials here and ar
ranged for the loan in the interests
of Northwestern grain growers.
The loan made to the Equity is
said to be the biggest made to any
cooperative farmers organization
through the War Finance Corpora
tion.
The whole transaction has now
been stripped of all red tape. The
Government corporation not only
agrees to furnish the money as
needed, but to furnish it in the
most convenient form. The money
is made Immediately available at
the Minneapolis Federal Reserve
Bank, which is to be used as SUBJ
treasury. This was authorized by
the Federal Reserve law. Ware
house receipts used as collateral
are not to be sent to Washington
but will remain at the Federal Re
serve Bank, Minneapolis, where
they can be taken up quickly when
needed to close grain sales. Thus
the loan appears to have been made
upon the best possible terms and is
In no way hampered by red tape re-
quirements.
Advances are to, be made to the
extent of sixty per: cent of, the mar
ket value of the grain, and August
15, 1922, is placed as the time for
final settlement. Interest will be
at six and one-half per cent.
In the issue of this letter for last
week it was stated that movement
had been underway to bring about
the cancellation Of the Equity loan.
At that time Mr.. r. G. MacGreg-
or and others representing the War
Finance Corporation committee, at
Minneapolis, had been in Washing
ton in conference with the directors
of the central office.
Prior to their coming wires to
pers from their Minnesota offices
warned them to be upon the lookout
for cancellation of the loan made
to the Equity Exchange. Since the
report was carried in this letter and
in other papers as well Mr.. Mac
Gregor and his associates have de-
MED any intention of attempting to
interfere with the loan, stating, that
the purpose of their visit to Wash
ington was merely to study the me-
thods to be used in their work for
the Government.
At that time however complete
copies of all regulations had been
this must have included the Mime
apolis Office with the others. Mr..
MacGregor and Mr.. Granguard, re-
presenting the regional office for
the Northwest, came to Washing
ton, went into conference with the
War Finance Corporation directors,
and left the city after very brief
stay. Reports were current at the
time that there was serious hitch
in the Equity loan negotiations. It
was initimated that because the
Minneapolis Office had not been con-
suited the loan might be cancelled.
And Minneapolis papers wired their
representatives here to be upon the
lookout for cancellation of the
loan following the visit of the ban
kers committee from the North
west.
: The committee, headed by Mr..
MacGregor, arrived in the city but
had little to say regarding the mat
ter Of the loan. Nothing could be
learned at the headquarters of the
War Finance Corporation during
or Immediately following the meet
ing, although upon the day follow
ing the statement was made by the
directors that the Equity loan
would stand. This was the chief
content of the story last week, j. e.,
that the Equity loan would not be
cancelled.
It now seems probable that Mr..
MacGregor made no attempt to
bring about any interference with
the negotiations. He has so stated
and the statements made by John
M. Anderson and other Equity ofic-
ials have verified the announce
ment that all possible cooperation
was being extnded them by the Off
cials of the regional committee. It
is probable however that the mat
ter Of the loan was discussed in a.
informal way but nothing has been
learned as to the attitude of the
bankers committee here to verify
the report that they had endeavored
to block the loan itself.
It is true that there was feeling
among certain people in the North
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