The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1922-08-10
No Appropriation Asked

No Appropriation Asked
It does not even require any new
appropriation by congress. It seems
t oassure large revenues to the treas
ury, correspondingly reducing taxes,
as all profits atbove 6 or 800 on cap
ital 60 to the government as a fran
chise tax.
The new system is to be directed
by ID a federal rural credits board
the secretary of the treasury, and
four appointees by the president con-
firmed by the senate. These men al
so constitute (2) Federal Rural Gre
dts Company, which takes over War
Finance Corporation with its $780,
O.O,6OO capital, to be reduced to $780,
600, 1000.
$1,O57 ,629 Capital for this
States Bank
That company subscribes (3) the
initial capital for one federal de-
benture bank in each state, at the
rate of $1,000 for each 81 600, 900 of
total value of all farm property.
The cash capital thus available for
the federal debenture bank of the
state of Washington will be 81 ,O57, 429,
the last mensus reporting 81, O57, 429,-
84S as the total value of farm, pro-
perty in this state. The bill proposes
that the state invest a like sum in
the debentures of this bank issues
secured by agricultural, live stock,
commodity and real estate paper or
iginating among our own people.
Members of Debenture Bank
Any national or state bank, coop
erative agricultural association, live
stock loan company or federal coop
erative bank in the State of Wash
ington, by becoming member of
the debenture bank, may have it cash
their agricultural, live stock and COM
modify paper running for six months
to three years or five years on real
estate. If more funds are needed,
the bank sells its debentures secured
by such collateral, which are to be
made legal investment for all funds
and especially attractive for savings.
All debentures are guaranteed prin-
cipal and interest by Federal Rural
Credits company, but each debenture
bank is free of any joint and several
liability. Member capital in time re-
places the federal advance, when the
debenture bank of Washington comes
into the sole ownership Of its own
members in this state. The Myrick
plan broadens the powers of the fed
eral. reserve system to rediscount
agricultural and live stock paper. It
also provides advances to facilitate
carrying over and exporting abnor-
mally large surplus Of crops. It grants
preferences to VETERANS and equality
to women.
Tenants to Become Owners
It enables tenants or hired men to
become farm owners, by cashing Sc
cond mortgages for five years on
farms upon which the buyer borrows
all he can from the federal land bank,
secured by first mortgage repay
able on easy terms over 33 years. The
ingenious way in which this is worked
out safely for lenders and investors,
smacks Of the originality shown by
Alexander Hamilton's sound fiscal
foundation upon which this nation has
been developed.
By transforming the temporary
War Finance Corporation into q per-
manent institution - Federal Rural
Credits Company, with branch in
each state-its debenture bank, the
editor Of Farm and Home outlines q
rural credits system in which he says
''all existing banks and cooperative
associations, with others that may be
organized, will safely mobilize part
Of their assets, credits and machinery
for the service Of agricultural produc-
ton and orderly marketing, to the
mutmual welfare Of all concerned and
for the benefit Of food producers and
food consumers"