The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-04-18

spontaneous origin published herein
All rights OF republication of all othe
matter herein are also reserved.
Foreign Representatives
SMALL, SPENCER, BREWER
(1ncorporated)
CHICAGO NEW YORK BOSTON
Good for Everyone
The farm and home finance bill!
now in congress are almost identica
in their nature and may, therefore
be discussed together.
Senator Borah says he will vote fol
the farm-relief bill, OF which the re.
finance provision Is q part, because
Of the splendid qualities Of this fea.
ture. He is not so sure about tina,
part Of the measure designed to LII
farm prices.
"A leading local merchant COM
ments that it Is the best thing the
government has done In long time
and should have been done long ago
His explanation Is simple. Times
have been difficult and incomes re.
duced for everyone. Fear has come
into almost every heart at thought
of losing the mortgaged farm or
home. People have refused to show
confidence in the future by going
ahead with normal business and that
is one Of the major things wrong
with US.
This bill. he contends. will lift the
shadow Of despair from many who
otherwise might lose the farm or
home, 1t will give them renewed con-
fidence and they will return to a
normal attitude.
The reasoning seems sound enough.
There can be no doubling the temper
which many persons have displayed
during these last few years. We have
all been bewildered and uncertainty
Is the twin brother Of fear.
Some protests have been made by
some so-called progressive elements
in congress that this bill, like most Of
the Hoover business hypodermic at
tempts, will aid the insurance COM
pantes and big business"
It will and we should all be glad
OF the fact. We want no epidemic
of insurance company failures In adj
dition to our other troubles. NIL
lions rest their hope of the future
and the hopes Of their dependents in
insurance policies. There could be
few greater calamities than the WHIP
ing out Of these equities.
But the bill looks beyond these and
similar corporate interests to the
welfare Of the farm and home owner
himself. It will help him and help
business ct the same time. The farm
er has been demanding that for a
long time. using the "help business"
plea to enlist assistance. Now he Is
getting it.
The fundamental point in both the
farm and city home bills, and the Sc
cret Of their success. II they do sue
coed, lies In the revaluation feature
which win be called into play before
any refinancing IS done.
The easiest way to illustrate the
matter is by taking the mythical case
of farmer John Jones who owes $4,000
on = mortgage held by the Whoosis
Insurance company. His position is
the same Is that of home-owner
John Smith.
With prices what they have been,
Jones Is behind on his mortgage. His
taxes are unpaid and he hasn't got
the money to meet these obligations.
The insurance company sees its
equity in the property increasing and
the prospect Of payment on the loan
decreasing. It contemplates fore
closure in an effort to keep its losses
from growing. Through no fault of
Farmer Jones and no fault Of the
insurance company, both are in Z
jam. The company Is sorry It ever
loaned the money to Jones. Jones
Is sorry he borrowed It. Both are
headed for additional trouble, II not
for the rocks.
Into this situation steps the sov-
eminent refinanoe system.
II says to Jones: your loan and
the interest on It ars breaking you
down and driving you of the farm.
The cities already are crowded with
unemployed. Aayhs Ne can scale tia
principal down and tighten The In
tsrast to . point whsrs you can pay
out. Then you can kesp your farm"
Ihers INIT . noFtgagor n the
count1y N1,o wouldn't % foe that IN
= big way.
Ths government thsa sAys - ths
Insurance. company. q other mart
eaese: you would hhs to get your
money out q that Jonas loan. 4 =
fruaen w1ese Il = and n . little while
longer you'll have on your hands .
pises q propstty which yo0 61n't