The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-05-26

have to be paid, but the thought is
that now is the time when freedom
from forced payment of the interest
will be Of most help.
Direct loans to the farmers by the
land banks are allowed under the
mortgage section of the law in cases
where farmers live in communities
having no farm loan association. The
land banks will require such a bor-
rover to agree to join farm loan as
ISOLATION if one is organized in his
vicinity, but the law opens the way
for him to obtain credit despite the
absence of such an organization. It
Is well to recall that the original farm
loan act specified there should be farm
loan associations of at least ten men,
bers organized before loans would be
made. In this manner, the members
of the association really were CO.
guarantors of each other and it was
considered that the bonds were better
secured because of this.
On top of these increased benefits
available to the farmers, the law ap-
propriated $2OO,OOO0OO of Reconstruc-
ton Finance corporation money to en-
able farmers to redeem or repurchase
farms lost through foreclosure, or to
reduce or refinance what is known as
Junior mortgages and obligations.
These commitments may include such
things as mortgages on live stock or
farm machinery and other equipment.
Congress sought to provide assistance
by providing means of getting rid Of
the pressure occasioned by the local
bank or other lender of money who
naturally wants to be paid off. 1t was
argued that no farmer would be sue
cessful in a full measure if he had
threats hanging over him of losing
his work stock or whatever he had
mortgaged to provide working funds.
Loans from the Reconstruction
Finance corporation funds may not
exceed $4,000, but it is provided there
need be no repayment of principal for
the first three years. AS was stated
in debate in the senate, this privilege
enables farmer to put his debts into
one second mortgage and feel little
bit free until conditions improve. And
it might be added that If conditions do
not improve within three years, money
will not be worth much anyway.
It is almost three months since the
Roosevelt administration took over the
government. Many
Economic things have hap
Policy pened, some of them
Of an astounding
character, in that time. In the broad
er perspective, one of the things that
has attracted attention of those who
look into the future is the deep-rooted
economic policy that President Roose-
welt has fostered.
In some respects, the President has
been driving hard toward what may
be described as economic nationalism.
For example, there is the law which he
describes as placing the government in
partnership with industry. In other
respects, he has sought ends properly
described as economic International
ism. The tariff truce and the program
for lowered tariff barriers throughout
the world constitute proof of this
course. l have found it difficult to
reconcile the two, yet it has been
pointed out to me that the President
will be free to follow either course
after the forthcoming world economic
conference is ended. If all nations
stand hitched, there will be tariff re-
auctions through the world; If they do
not agree in that conference, Mr..
Roosevelt can turn back to economic
nationalism.
The price parity bill, which have
just analysed, is essentially national
istic, and if it proves successful there
will be sufficient unto ourselves. In
this connection, the gold embargo
should be recalled. While our tariff
rates have been high, holders of cap
ital in this country loaned billions
abroad. These events surely have the
appearance of a foundation for
planned economy" and affect our own
development. They do not relate to
world affairs.
President Roosevelt is not going to
allow the American delegation to talk
about the debts owed to the American
government. That subject remains in
his hands. It is safe to say he will be
his own secretary of state to receive
any communications the eleven foreign
nations have to make respecting their
inability to pay their semi-annual in
stallments in June and later.
In considering what the Roosevelt
administration has done since March
A, many observers
Just Hard here have reached
Workers the conclusion that
the President did
not need to select strong men for his
cabinet. The makeup of that cabinet
never has been looked upon by those
10 as UcIuS OulSIdHu-
ing in any particular respect. He has
chosen honest. Woodworking individ-
uals for the various posts, but it is no
secret that announcement of appoint
ment of some of them brought ques-
lions among some rather important
persons in the Presidents own party
as to the identity of those named In
deed, in the case of one cabinet men,
Der. l heard two longtime Democratic
senators remark that they never had
heard of him before.
The point of all this is that Mr..
Roosevelt has come to be the govern
ment insofar as one individual can
possibly be. He has dominated con-
gress far beyond anyone's expectation
or hone and he controls his cabinet to