Newark leader. ([Newark, Ohio]) 1917-1946, 1924-03-21
Farmer Stockholders Are
Holding Sack
CONTROL CAPTURED, WITH BIG
SYNDICATES IN CHARGE
OF AFFAIRS
If Present Policy Is To Be Continued
the Government Should Return
Money to Farmers Who
Subscribed 1t

Washington, D. Glow about this
big Federal Farm Loan Board?
How about the charges that are be-
ing made against it at every meeting
of the Senate Banking and Currency
Committee?
Recently witnesses of high charac-
ter have appeared before the commit
tee and said things about the Billion
Dollar Farm Loan system that in 9th
er times would set the nations teeth
on edge. How does it happen now
that not line about this testimony 10
printed in the daily press?
TO the millions of farmers in this
country nothing could be of more in
terest. According to this testimony,
the system erected by the national
government at a great expense for
farmers relief has been amazingly
mlshandled. According to this testi-
mony, the bureau that manages this
vast concern has become a self-con-
tanned, self-perpetuating body, ex-
travagantly supported at the expense
OF the 100000 farmers that own the
stock of the twelve Land Banks.
When the original Farm Loan act
was framed in this country, provision
was made that farmers getting loans
at the Land Banks should purchase
stock in those banks. In view of this
purchase and their liability they were
assured control of the Boards of the
Land Banks, because they were pro-
vided with the right to elect six of the
nine bank directors.
They were also empowered to issue
and sell their own bonds, so that they
might build up sources of credit in
dependent of the existing financial
power
The control of the banks and the
right to issue their own bonds seem
TO nave been taken away from them,
Whatever the law may have intended.
A syndicate Of eastern bond houses
was formed and upon this syndicate
was bestowed the exclusive right to
sell all the bonds except the small
amount that was sold through the
Land Banks.
Ihls syndicate included some of the
greatest and most powerful financial
interests in America.
IL hadled about a billion dollars
worth of the bonds the law intended
the farmers should handle for them
selves.
Meantime, the plan of issuing the
bonds through these great houses ha.
utterly defeated the original idea of
encouraging cooperative credit asso
cations among the farmers by which
alone farmers can hope to win lower
interest rates.
While the world war was going on
the Farm Loan Board is said to have
secured the passage of an act amend
ing the original law so as to prevent
for six years elections in the Land
Bank dlrectorates and thus effectu-
ally ousting the farmers from every
nominal control or influence.
The fierce comment this aroused
among the farmers was responsible
for the Agricultural Credits act mass
ed at the last session of Congress, re-
duclng the size of the Land Bank
boards, keeping the farmers from any
control of them, and centralizing the
power to issue bonds. This was the
act run through Congress in the con-
fusion of the last days of the session
and against which the farmers now
are protesting.
1t was the feeling of all the wit
nesses for the farmers that if the
present policy is to be continued, the
government should return to the
farmers the money they subscribed
for their bank stock and make the in
stitutions plain and above board ad-
juncts to Wall Street.
These farmers plainly feel that they
have been bunked.
They are beginning to feel also that
they are denied the chance of hear
ing before the nation.