The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-03-27

Loan banks arc liable for each
others obligations.
"Debentures issued by the Cred
it's banks are tax free to the same
extent that Federal Farm Loan
bonds are tax exempt.
Title Two. of the act provides
for the organization Of national
agricultural credit corporations
which are to be under the super
vision of the comptroller of the
currency. The minimum capital of
these corporations is $3.50, 900, and
member banks of the Federal Re-
serve System arc given the right
to subscribe to the capital stock
of these corporations to such an
extent and not exceeding in the
aggregate ten per ccntum Of the
paid in capital stock and surplus
of the member bank subject to the
approval of the comptroller of the
currency.
"The operation of the War FL
nance Corporation is extended to
March |, 1924.
1.-The new act provides for the
appointment of a committee OF
eight, three from the banking and
currency committee of the senate
and five from the same committee
of the house of representatives to
inquire why more eligible state
banks and trust companies do not
join the Federal Reserve System.
81 believe this farm credit law
will to some extent, have the cf-
feet of reducing interest rates to
the borrowers. 1t certainly pro-
vidcs ways and means for making
a large amount of additional credit
available when it is needed.
81 was impressed with state
mcnt appearing in a recent ISSUE
of the Literary Digest regarding
this new farm credits law in which
an eastern farmer is quoted a:
saying that giving the farmer
more credit to produce crops at {
loss is like trying to make ;
drunken man sober by giving hin
more whisky
In recent discussion of tn
agricultural situation | endeavorct
to impress upon those present tn
fact that the farmers were raising
toe much wheat in this country
That it is futile to endeavor t.
raise wheat for export in competi
ton with the wheat farmers il
, Canada, the Argentine, Australia
and India. Let me call your at
, tention to what Secretary Of Agri
culture Wallace says in his lates
= report.
There is overproduction, so ia
f as the producer is concerned, wher
ever the quantity produced can nc
+ be marketed at price which wi
G cover all production costs and leav
:, the producer enough to tempt hi
= to continue production He ais
: says Some contend that there
= no such thing as overproduction {
s farm products and cannot be ;
long as there are people in II
It world who suffer for food and cl'
thing. On the same line of reasol
s ing it can be argued that the pr
g duction of automobiles will be il
X adequate until every man and WI
5. man and every boy and girl I
It high school age owns one 1t
If difficult to arrive at the cost I
raising wheat as so many differe1
it conditions must be taken into CO..
Ie sideration. But cost price of
n least $l.25 per bushel on lal
It worth 500 per acre is not too hil
5 in my opinion and it costs fro
that up.
n when the farmer goes to ma
al ket, he finds that the purchasil
power of his dollar is only abo
,e 6S per cent of what it was befo
II, the war. In other words, sin
l. 1920, there has been a gradual i
I'd crease in the costs which the farl
t. cr must pay in manufacture
n wages, freight rates and tax
m while everything the farmer pr
re duces is sold on about the sar
ne scale of prices prevailing in pr
n war times, with the exception
ne wool, cotton, and flax. The
cvitable law of supply and dema
T. has gotten in it's work. am
s. full accord with Secretary Walla
~ when he says that among
I'd causes which contribute to the .
Is normal relationship of farm prit
ce to the prices of other things m
Ill be mentioned.
b. "D Overproduction of ma
10 farm crops.
I'll "(2) Continued high frcie
&c rates.
a "(3) The maintenance of ind,
n trial wages at near war time leve
or "(4) Economic depression a
al deprecated currency in Europe
ne countries.
M "(5) Interference with the el
o:,,t r,,,n%;oO;nv nc ,,ncnScnrv