The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1932-09-02
The Racketeers Called
The Federal Land Bank

they do get a lot of millions of
dollars from the government to do
their business on with which they
pay practically no interest. At
the top of some of the papers they
send out they print in big letters
United States of America" the
reason this is done is to fool the
people and make them think thew
are dealing with the government.
With this and with the name "Fed-
eraP they have been able to fool
practically all of us.
Some years ago 1 took out a
Federal" farm loan, it was for
$1,000, for which 1 gave the Fed
eral Land Bank of Spokane secur-
ity in a half section of land with
lot of good buildings and other
improvements. Out of the $1,000
the 5 per cent, or SIS, never left
the bank. That money was mine,
l had put up plenty of security for
it, but | never got it. The $1,425
l never saw either for that mat
ter but presume it left the bank.
l am paying 51a per cent inter
est, not only on the 81, 425, but also
on the $75 never got. Besides
that, l am paying off on the prin-
cipal from year to year. I am
supposed to pay $3.50 each year
When 1 pay that for ten years
have paid to the bank 1915, but
still owe them $1,903.53, and all
got from them in the first place
was 81 ,425. If / keep on paying
for "a and one-half years then the
loan is paid up in full, then I have
paid to the bank about $4,000. No
only have l paid back with inter
est the SLABS which I did get, bu
have also paid back with interes
the $75 which l never got.
The money that 1 pay to the
bank is again loaned by them a
more than 5 and one-half per cen
| interest, in that way it become
what is known as compound in
terest. In that way the banker
getting over $4,000 out of wha
: money l am paying him in the 3
; and one-half years, which is mo-
!. bad for him on an investment O
SLABS.
But what about the $75, didn
I get anything at all for that? o
yes. I, the farmer, l am now ;
man of some responsibility, al
! now a shareholder, a stockholde
in the Federal Land Bank of til
| United States. 1 own SIS wort
of shares on which the bank is M
paying me any interest or div
| dend, in my case it works the otht
way. l am paying interest to tt
= bank on the shares that l own, an
Il in time 1 will pay for the shares
second time.
= When the bank makes SIS, 1000 {
} the money that l am paying, as
stockholder l ought to get lit
of that, but I don't get it. But
the bank loses any money in Il
+. vicinity where / live, then l as
= stakeholder am responsible for t
loss and they take it out of n
S75. If the $75 is not enough tn
assess me another SIS. I am !
sponsible for the double amount
nv stock. Whenever the bal
makes any money l don't get a
. of it, and whenever they lose a
then am the one who pays
II The farmers are studying up
these things and they are realizi
that this is the most rotten S.
tenn that ever was invented. I
e Federal Land Bank is now tire
ening foreclosure, they are ask
- for additional security, mortga
or crop, mortgage on cattle a
everything else. They want it
and the farmers are refusing
sign any more papers, they h;
had enuf of it.
q Fellow farmers! What are
going to do about it? Are we
sit and fold our hands and let
n Land Bank come in and grab
land? No, we are not. Down