The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1929-04-19
Economic
Articles
By LELAND OLDS.
Federated Press
FARM NOTES

Farmers throughout the northwest
will soon be dealing with great bank
combine instead of with local bankers
bound TO them by ties of neighborly
interest, according to announcements
from the Twin Cities telling of chain
banking plans now under way. Big
bankers of that region are going to
anticipate the relaxation of the law
against branch banking by creating
holding companies to buy control of
outlying banks in the 9th federal re-
serve district.
The first announcement told of the
formation of the Northwest Bank cor
poration by the Northwestern Nation
al Bank group of Minneapolis. This
group has resources of about $175,-
100000. 1t has already purchased a
number of banks in Iowa, Wisconsin.
Minnesota and the Dakotas.
There followed a similar move bv
the First National banks of st. Paul
and Minneapolis acting in cooperation
to form the First Bank Stock invest
ment company. According to the
Wall Street Journal: "They are the
oldest and largest financial institu-
lions in the northwest, and their Joint
ly owned subsidiary company is prob
ably the strongest financial organiza-
ton ever formed in the district" The
combined resources of the two banks
amount to $275,000, 900.
1t is interesting that the credit p1
this great farm empire is to be ad.
ministered only by bankers, business
men and the presidents of the 6 larg.
est railroads serving the northwest
who will sit on the board of directors
of the bank stock company. There is
no indication that farmers will have
representation commensurate with
their interest.
Wheat farmers are discovering how
barren is the advice peddled for DO.
lltlcal purposes by a secretary of ag.
riculture, supposed to have their in.
terests at heart. Following the coun.
sci of Jardine, Coolidge's agricultural
expert, they now have on their hands
considerably more unsold wheat thar
year ago. But they have waited in
vain for better prices.
Jardine issued his statement at the
height of the Hoover campaign. He
said: "Hold your wheat, don't dump il
now" His purpose was obvious. Re
publican politicians wanted another
term in which to enjoy the fruits o1
office. They were worried about the
vote of the disconnected farmer in the
Whnaf ho1+ IT, Sxyox1J o,.o1, oxyoooJoc
any possible demand. Unless the
farmers could be kidded into postpon.
ing the inevitable drastic drop in
prices would result. Such collapse
might hurt the myth of republican
prosperity.
The new season is approaching and
what are the facts? According to the
department of agriculture the stocks
of wheat still on the farm March !
totaled 148,813,000 bushels compared
with 1904, 900 bushels in 1928, $780,.
274,000 in 1927 and an average OF
127, 100000 bushels in storage on the
farms in the years 1927. In add.
ton the stocks in public and private
elevators are considerably larger thar
last year. Altogether, according to
the Wall Street Journal, the increase
in the visible supply of wheat on
March 1, compared with the previous
year was equal to almost a third OF
the entire quantity of wheat and flour
exported from July 1, 1928 to the end
of February.
In spite of the additional wheat
withheld from the market wheat
prices are still nearly 1919 below a
year ago. Jardine's advice may have