The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1921-10-20
NEWS SUMMARY
OF THE CAPITAL
Kellogg Agricultural Credits Act to
Assist Farmers in Placing Their
Crops on the Market.
NO INCREASE IN HOUSE
Gambling in Futures by Boards of
Trade Will Be Unlawful After
December "a, 1921.

Officials of the war finance corpora
ton declare that no hard and-fast rule
can be formulated to govern loans to
be made under the Kellogg agricul-
tural credits act. According to these
officials the war finance corporation
is really a banking institution orga-
nized to help the farmers in market
ing their crops. The Kellogg act re-
quires that there shall be "full and
adequate security" for each loan, and
the war finance corporation must
abide by the letter of this law. Thus,
each loan will be determined upon the
facts presented and the kind of Sc
curly offered. Under the law there
are four classes of institutions to
which loans can be made. They are
banks, bankers, trust companies and
cooperative associations. They are
authorized to make loans on agricul
. tural products and on livestock. The
collateral to be deposited may be
either terminal warehouse certificates
or notes based upon agricultural
products. In the operation Of the
law the banking institutions named
therein are required to present appli-
cations for loans to the agricultural
loan agencies established in the va
rious federal reserve districts The
securities offered may be agricultural
notes or other notes in the possession
Of the banks or trust companies. No
individual can obtain a loan from the
war finance corporation under the
terms of the Kellogg act. Any indi-
vidual who is in need Of money to
finance his crop will be obliged to OBJ
tain it through some banking insti-
tuition, which, in turn, will offer the
note to the finance corporation for
rediscount. The war finance corpora
ton is really rediscounting institu-
ton for banks making agricultural
and livestock loans. Cooperative as
sociations deal directly with the war
finance corporation in Washington.
Generally they are required to offer
terminal warehouse certificates as
security for loans, and their financial
standing and ability to repay the loans
are determined by the corporation.
The house recorded it's opposition
~
recommitting to the census committee
by vote of 146 to 142 the Siegel bill
to increase the size from 435 to 400
members. Representative Walker of
Minnesota strenuously opposed the in
crease. He said: 81 am opposed to
increasing the present membership of
435 because it would increase the leg
islative expenses of the government
by half billion dollars. We are work
ing for economy and we cannot afford
to add to the legislative expense of
the government. In addition, an in
crease in the membership would make
the house more unwicldy than it is
now. With the present membership
even important bills are not con-
sidered as thoroughly as they should
be and the result is half-baked meas
ures that often are not sustained when
they are tested in the courts. With a
larger membership the danger of the
enforcement Of such legislation would
be increased"
Gambling in grain by boards of
trade in the United States must cease
on Christmas eve next. This is in
accordance with the future trading
act, which is more Familiarity known
as the Capper-Tincher bill. By the
provisions of the act it becomes effec-
tive four months after it becomes a
law and it became law August "a,
1921, which would make it effective
December "a. Under the provisions
Of this act all transactions in grain
which include wheat, corn, oats, bar
ley, rice, flax and sorghum, for "fu-
ture delivery" shall be taxed at the
rate of 20 cents a bushcl in addition
to all taxes now imposed by law, ex-
cept where such transaction is the sale
Of cash grain for deferred shipment
or delivery, or where the seller is at
the time of the transaction either the
owner or the grower of the grain
covered thereby, or the owner or rent.
er of land upon which the grain is
grown, or an association of such own.
ers or growers of grain, or where such
contracts are made by or through 9
member of board of trade which has
been officially designated as con
tract market.
Exhibition flights by personnel Of
the air service Of the army with equip
~ ment of the service has been prohibit
ed by an order Of the war department
except in connection with government
projects.
The senate has adopted the republi
can compromise plan to repeal al
transportation taxes beginning Janu
airy 1, 1922.
A bronze tablet concentrating the
services Of the 243,135 horses anc
mules attached to the American forces
during the war, 1852 of which per.
ished,. has been unveiled in the state
war and navy building. The tablet