Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-11-05

at present because Of the ownership
in the Rural Credit bureau.
The Rural Credit bureau now has
an income of 9-10% on the farms
owned by it. Upon those farms it is
paying the equivalent of an interest
rate of .0432. If that interest rate is
reduced so as to lessen the spread
between the income received by the
bureau on the $14,O00,000 worth of
farms owned by it, to-wit, .019, and
the interest rate paid on that $4,000
600 by the state, which is now .0432,
it would be able to operate at lower
rate of earning, viz, .00S5 or even
.OO79 instead of its present earning
rate which is .O093.
Lower Interest Rate Desirable.
The main question is as to the
means of reducing the interest rate
paid by the Rural Credit bureau. That
could be done by amending the law
with reference to the rate of interest
at which the Investment board is al
lowed to loan money, or it could be
accomplished by inducing the govern
ment of the United States to loan to
the Rural Credit bureau the sum of
$25, ,OOO-the amount of bonds now
owned by the State of Minnesota,
which the Rural Credit bureau could
purchase from the state, plus SILL
100000 worth of bonds not as yet is
sued, but authorized by law.
The United States government made
gate of 9,452,OOO,OOO. 1t has can
celled a substantial part of that
amount. At the present time it is
charging interest on the unpaid bal
ance of the loans ranging from
3 3-10% to Great Britain, 9-1O% to
France, 40 of 20 to Italy and prac-
tically nothing to Belgium. 1t would
seem, because of it's treatment of for
eign countries and because it is able
to obtain money cheaply that it would
not be unseemly to ask it to loan
money to it's own citizens at a low
rate of interest. This loan would not be
in the nature of gift or subsidy, but
would be made upon absolute security;
that of the State of Minnesota itself.
l propose therefore to ask the Pres
ident and Congress for legislation per-
hitting the making of loan to the
Rural Credit bureau of Minnesota so
as to reduce the interest rate to the
farmers of this state.
Desires Rural Credit Leniency.
1t is my desire that the Rural Cred
it bureau operate in the best interests
of the farmers of Minnesota. The
members of the Rural Credit commits
sion have many perplexing problems.
Recently a communication was ad-
dressed to me requesting the calling
of a special session of the Legislature
in order to legislate a moratorium for
several years upon moneys owing to
the state upon loans made by the Ru-
raj Credit bureau. Although it seem
ed to me that suspension of payment
who are able to pay, would work
tremendous hardship upon the other
taxpayers of Minnesota, yet l have
submitted the proposition to the bu-
reau for Information and recommend
alton, and have asked it to be as
lenient as possible with borrowers of
state funds who have an honest desire
to pay and remain upon their farms.
l have also asked the bureau to re-
frain from securing and collecting any
deficiency judgments in foreclosure
proceedings.
The Rural Credit bureau because of
its problems, of which the cited mora
forum is only one, needs expert ad-
vice, and 1 would greatly appreciate
your cooperation and counsel in the
matter of the administration of the
bureau. To that end request that
committee, to be designated by this
conference or with your permission,
by me, be appointed for the purpose
of acting in an advisory capacity to
the bureau.
Favors Fixed Basic Prices.
What can we do for the farmer with
respect to the manner of marketing
his commodities and the price re-
ceived for them?
The Farm Board, or a new commits
sion, should be authorized by Act of
Congress to regulate the market price
of the basic farm commodities. That
fixed price should be based upon the
cost of production just as the rates
charged by railroads under the au-
thority of the United States govern
ment are based upon cost of operation
of the railroads. The cost of produc-
ton of various commodities is diff
ferent in the different geographical
sections of the United States. 1t would
be necessary therefore to divide the
United States into zones for the pur-
pose of price fixing. 1t would also
be necessary to limit production,
either by voluntary agreement of per-
sons engaged in farming, through en-
rollment in cooperative organizations,
or by limiting the amount of a COM
modify for which the government, as