Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1921-08-12
Says Federal Farm Loan Bank
and Bankers Joint Stock
Land Bank Should Be Made
to Function to Maximum
Capacity at Once to Relieve
Farmers of the United States
From Their Present Finan-
cial Difficulties

Congressman Nelson of the eleventh
fore Congress claims that the farm
ers are being Disseminated against in
the matter of long-credits and are
charged eXOrbitant rates Of interest
and large commissions on new loans
and renewals This is due to the
fact that money is withdrawn from
farm operations and used in other
financial operations such as foreign
bond issues and bonds of domestic
corporations, which pay ~ to s per
cent interest, plus large commissions.
He states that large insurance COM
panies and real estate mortgage agen-
cies who formerly loaned money on
farms at 81 to 6 per cent, are now
demanding Z ard S per cent. plus big
commission, because they can now in
vest in the abOve-named bonds.
Loans made to farmers are for five
to ten years at these high rates and
they have to pay these prices even il
rates are lower, while the business
man can borrow for Il short time and
get the advantage of lower rate if
interest is lowered.
The farmer cannot stand to pay
these rates at present prices of farm
produce and live stock Local banks
have gone to the limit to help the
farmers and are helpless to furnish
further relief and are as vitality in
terested i'll the farmer being able to
secure outside credit as is the farmer
himself.
us today is to enable the farmer loan
system to function to maximum
capacity in its dual provisions.
Mr.. Nelson said THAT the Federal
Land Bank and the Bankers Joint
Stock Land Banks of the country must
capacity to tide the farmers over The
present money depression.
THE farmers are in dire need of
help he said. because of the frozen
credit held by the country banks
Mr.. Nelson has analyzed the farm
ers' needs in this speech. and there
are many good men. such as Presi-
dent Harding. Secretary of Agricul-
ture Wallace, a number of other SEN
atOrs and representatives, and the
Farm Bureau headed by its president.
Howard, who are going after these
propositions which will give the farm
er an equal chance with other big bus
inesses. We earnestly hope they will
act before it is too late.
The idea of farm and dairy land of
the United States begging for farm
loans on a 80 per cent basis without
being able to get them is indeed an I'M
healthy condition. and must be rene
died at once if we are to maintain
our prestige as the strongest nation
in the world
Farming is the fundamental indus
try Of any country, and when it is
grappled by the throat by conditions
as they now are it is indeed time for
congress to act.
1t took fifteen minutes for the big
loan companies to throw wrench in
TO the machinery OF the Feuefdl Loan
Bank, which stopped it and the Bank
ers' Joint Stock Bank from function
ing. We are wondering if it is going
to take fifteen years>to get it started
again.
When farm loans are made equally
as attractive as the loans and bonds
of big business, we will getemoney for
agriculture. and not before. This
means to tax ali loans and bonds on
an equal basis and this is one Of the
big things the Farm Bureau is fight
ing for.