The Connecticut labor news., 1924-05-03
Complaint Comes to Washington That Un- satisfactory Adminis- tratiOn Is Nullifying Cooperative l. a n d Banks.
By International Labor News Service

By International Labor News Service. 1 Washington, D. C., May 3.-Senator La Toilette, interested in cooperation, l has received urgent requests-in reply to letter of inquiry sent out to farm CTS who hold stock In the billion dol lar Federal Farm Loan system-that he insist upon full investigation of the unsatisfactory administration and all legged Irregularities of the Federal Board at Washington
 Hundreds of thousands of farmers hold the 41,O00,O0O capital stock of the 12 great land banks located in Spokane, Berkeley, Houston, New Or leans, Louisville, Omaha, Wichita, St. Paul, St. Louis, Baltimore, Columbus and Springfield. They bought it at the time they took their loans. This law, passed in 1917, was supposed to be the cornerstone of cooperative banking in the United States. In or der that farmers might cut down their own interest rates, the law was writ ten so that the farmers might pool their land, issue bonds against it, find their own market, control 1t them selves and cut out banking middlemen. It was to make farmers independent of the mortgage bankers, and allow them to develop a separate credit pool
 Don't Control Own Banks, Farmers
 Say.
 They complain that the law has neve rbeen permitted to work in this way. We never have been given our own banks. Why are we not al lowed the control guaranteed under the original act?" they demand. Ex- cept in so far as the liability for cooperative features of the act have been nu1lihed by certain consistently objectionable policies of the Federal Board. They inquire why their 12 great banks and a system whose assets are now $o31 100000 shoH be entirely managed by officials without a penny of investment in the system Several millions of undivided profits are held up from year to year, they point out, instead of being returned to farmers i'll dividends The system is not meeting the demand for loans Service is generally complained of Even public information is denied, they say.
 Why doesn't the interest rate come down." This question, voiced by many of Senator La Follette's middle-west- ern correspondents, challenges the vital efficiency of the system.
 Heads of Banks Ruining System,
 Charge.
 Seems like the farmer who IS struggling to make and keep little home can't get help from the very land bank supposed to be ready par to serve him." writes one deeply troubled Farm Loan secretary from Massachusetts,
 The officers of the Federal Land Bank are going to ruin the system un- less something Is done," protests Nebraska association. "the election of 1 officers is little less than a practical 1 oke"
 Reports of unfair valuations made l oy inexperienced incompetent ap- oralsers, politically appointed, come rom every section. Red tape, dis l service so slow 1t is not 1 service at all, likewise flow in From l Michigan comes this: Farms are being forec1osed here because of the 1elay Tn making appraisements"
 The Senate Banking and Currency Committee has only reluctantly l orobed ill a superficial manner into certain acts of the Federal Board l