The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1925-04-29

The $50 ,000, 900 rural credits bono
issue act was signed Monday night
/ by Governor Christensen within foul
hours of the time it would have beer
automatically killed through pocket
veto.
At the same time the Governor is
sued statement asserting that he viii
insist on conservative management OF
the rural credits system, pointing out
that only SO much as is necessary OF
the $30,000,000 will be issued and re-
minding the opponents of the measure
that under the reorganization of state
government plan he will be able to
control the operation of the rural
credits act.
Thus, the Governor, in signing the
bill and through his statements, as
sumed full responsibility for the op-
Grafton of the system.
| 1t was said by those close to the
Governor that nothing like $3O,0OO,-
900 will be issued. The Governor
declined to make any statement on this
aspect of the law except to say:
"This bill does not issue any bonds
lit is permissive in character, and
makes so much of the sum $50, 00O,-
600 as may be necessary, available if
any emergency should arise.
"It will be the policy of this ad-
ministration to insist on conservative
management of the rural credits sys-
| tenn. Under the reorganization bill
which has just passed the House and
Senate, the Governor has been vested
| with power to safeguard the interests
of the state to the utmost"
Governor Christensen delayed to
the last few hours his signature OF
the rural credits act. Alone in his Of
lice at the State Capitol he signed the
bill at 8 p. m. Monday.
Under the terms of the reorganiza-
ton bill the Governor is given author
| ity to name without terms" two mem
bers( a majority, of the Rural Credits
departments. Moreover, this depart.
ment is placed under the general
supervision and control of the super
commission, known as the Department
of Administration and Finance, thru
which agency the Governor will have
control of the financial affairs of the
state.
Thus the Governor is empowered tt
say how many bonds shall be ISSUED
and when. It is generally believed
that he will limit the issue to 10,00O,
900 for the biennium He was the
original author of the bill in 1922
which submitted the rural credits a
mendment to the people. 1t was adopt
ed at the 1922 election and the 1872:
Legislature authorized the issuance Of
SAC, 100000 in bonds. The present
Legislature authorized an issue up tt
$40. 100000 more.
"It was not the purpose Of thos,
who took the initial step which lee
to the establishment of the rural
credit system, to put the state intt
the money loaning business as a bust
ness. At the time those steps wer,
taken farm mortgages were being
foreclosed because many farmer:
found themselves unable to renew
loans. Where loans could be renewed
the rates charged were not only ex.
orbitant but prohibitive.
"The situation justified the expedi
ent of using the credit of the state tt
save it's basic industry.
"The rural credits system has beer
likened to a gun behind the door,
useful to hold farm mortgage interest
rates down. A gun is of no effective
use without ammunition. This bill fur.
nishes the ammunition. The CUR
will not be effective after the stock
of ammunition is gone. 1t will there
fore, be the policy of this administra-
ton to conserve the ammunition now
provided, in order that the gun may
be useful whenever it is needed.
when farmers can get, loans al
reasonable rates and on reasonable
terms from other sources, they shoule
not ask the state for a loan. Every
dollar loaned when there is no neec
will deprive somebody of that dollar
when it is needed. Under the reor.
ganization code, it will be my pur
pose so to organize the Rural Credits
bureau as to give effect to the policy
/ have herein set forth"
| You can't keen GOOD man dowr