The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1922-07-12
REDWOOD MINNESOTA. WEDNESDAY. JULY T. 1922
Cong. Frank Clague
Home for a Month
IN INTERVIEW MANY THINGS
ARE LEARNED OF INTEREST
TO HIS PEOPLE.

ARE LEARNED OF INTEREST
TO HIS PEOPLE.
The House of Representatives hav-
ing adjourned for one month, Con-
gresham Frank Clague returned to
his home here on Wednesday. The
people of Redwood Falls are mighty
pleased to welcome home to them
selves Mr.. Clague, who has been the
representative Of the second district
/ in the fullest meaning of the word.
The people Of this district can refer
| to him with pride as "Our Represent
ative"; for it has been his sincere eff
/ fort in Washington to work for the
best interests of his constituents.
That he has actually satisfied the
people is evident from the fact that
he has clear field for the November
election.
Mr.. Clague says that whereas it is
not uncommonly thot this Congress
has done little in the way of legisla-
tion, yet when the problems confront
ing this country after the war are
considered, much, has in reality been
done. The finances Of the government
itself have been put in good shape:
This has permitted the abolition of
the nuisance taxes, such as the re-
venue taxes on drugs, ice cream,
freight and passenger traffic, etc.
| The economies Of the government
approximating the sum of $8OO,O 900
annually have also made possible the
reduction of the income tax and bur-
dens both by increase of exemptions
and by lowering of rates.
| But aside from improving the fin
ancial condition of the government
itself, Congress has done much to
make it easier financially for the in
dividual farmer. A year ago it was
practically impossible to borrow
| money. Today any farmer with fair
security can borrow money at reason
able rates in two ways made possible
| by the government.
| One of these was made possible by
the War Finance Corporation. The
+ purpose of this corporation is to loan
/ money to banks and such fundamental
/ industries as actually stand in need OF
! money to carry on their operations.
! Many of the banks of the Northwest
have borrowed money from the War
Finance Corporation for the purpose
of loaning it out to the farmers who
need help. A glance at the item "War
, Finance Corporation" in your bank
statements will tell to what extent
the government has aided this section
of the country. The government has
backed this War Finance Corporation
| for one billion dollars. About five
hundred million of this amount has
| L oh n11f
seventy-fve millions of this amount
has found its way to Minnesota and
the Dakotas.
The other one of these financial aids
rendered the people is by making pos
sibIe the operation of the Land Banks,
both Federal and Joint Stock. For
some reason or other, these land banks
which have since organization always
borrowed money to the farmers at
6 percent prior to July 1st., 1921 were
not permitted to. sell their bonds for
more than percent. AS result on
account of high interest rates, the
land banks could not dispose Of the
bonds issued against these mortgages.
In the meantime, insurance companies
and other loaning agencies were
charging the farmers exorbitant rates
for farm loans. The farmers who had
:, to have the money were obliged to
pay that rate or go without the loan
:, Accordingly, Mr.. Clague introduced a
bill in the House authorizing these
banks to sell their bonds at 57a per-
cent but without raising the interest
rate any higher to the farmer on his
mortgage. With bonds offered at ~
percent, they found ready market
/ Today there is a market for farm
loans which makes it possible for ev-
cry farmer to borrow on his land at
reasonable rate of interest.
These two methods of relief have
made it possible for the farmer to &C
on with production and thus work out
of the difficulty into which the search
ty of money forced him. Mr.. Clagus
SAYS he is of the opinion that the Fed
eral Reserve Banks in the year 1926
did the country an injustice when two
years ago it insisted on the immediate
payment of a large part of notes due
I from country banks. By demanding
this the country banks were forced tc
call in the loans they had made with
borrowed money, thus working a hard
!, ship on the farmer.
4 This Congress has done even more
to help the farmer. Thru the Emer
gency Tariff it has placed duty OF
wheat, oats, cattle, wool, sheep, etc
If it were not for this tariff today
the prices of cattle, wool, etc. woulc
be half again as cheap as they art
today, Mr.. Clague says. Of course
the price on the grains is not toda!
where it should be; but this is due t.
the fact that altho Europe wants these