The midland journal. (Rising Sun, Md.) 1885-1947, 1934-01-12
National Topics Interpreted

Farm Leaders politicians no end of
Irk Congress grief and worry. Pc
culiar, too, the cur
rent struggle was brought on by the
politicians themselves who failed to
see year or so ago where they were
headed. They are now face to face
with problem that involves not only
the demands of the farm leaders, but
directly and forcefully affects the abil-
lty of the federal government to bor-
row money.
The situation is this: the Farm
Credit administration originally had
a fund of $20O,0O0,OO0 which it could
use rather in its own way for relief in
desperate farm mortgage cases. 1t
could determine appraisals for itself
and do a number of other things In
order to get relief to distressed farm
owners without regard for ordinary
federal mortgage laws. But that fund
has been exhausted. Indeed, it has
been far overdrawn, and the Farm
Credit administration has had to bor-
row money from the Reconstruction
Finance corporation in order to carry
on that phase of it's work.
Now, the Farm Credit administra-
ton must sell bonds 1t has authority
to sell them to obtain funds, but it Is
confronted with exceeding difficulty
in their sale. Investors are not par
ticularly anxious to take them. Just
here is where the politicians find them
selves In quandary.
Farm leaders are demanding that
the federal government guarantee the
interest on those bonds, so they may
be sold and If a guarantee of interest
won't suffice, then the farm leaders say
the interest and principal of the bonds
ought to be guaranteed. In either
event, congress has to enact the legis-
lation necessary.
Offhand, it would seem that congress
should be willing to guarantee the in
terest and principal without any argu-
ment 1t is a situation, however, not
so easily solved, because of the effect
elsewhere. If the farm mortgage
bonds are guaranteed as to interest
and principal, then the owners of
homes will, and do, want the same
thing. If one gets it. the other must
have 1t or the bonds that are not
guaranteed cannot be sold.
That is the whole story. If both of
the agencies dealing with mortgages,
farm and home, are accorded a gov
eminent guarantee, then the whole
structure of farm and home loan bond
issues, running into billions of dollars,
In which the government has an inter-
est, becomes part of the national
debt. The national debt now is around
$23, 500,0O0,000. 1t can go somewhat
higher without causing the values of
those bonds outstanding to become de-
preciated. Yet, there is limit. When
that limit Is reached, investors every
where will suffer, banks will suffer to
the extent that they have government
bonds, life insurance companies that
have invested your premium payments
and mine in bonds to earn interest will
suffer. In short, an overlooking Of the
national debt will wreak havoc. And
in the end, taxpayers will pay and
pay.
So that point where the politicians
find themselves now Is at the cross
roads. They can not yield all of the
demands Of the farm leaders. That
would result in the things l have de-
scribed. But they started the farm
leaders on their present course by
lot Of promises designed to win cleo
lions. All the farm leaders are de-
handing now is that the politicians
make good.
The early weeks of congress already
have demonstrated that the session is
going to be devoted
Political to a considerable
HorseTrading ext t. to the asn, build,
fences. Although the votes will not
be cast until November, there is dis
satisfaction with sitting members of
the house and senate in many baili-
wick, and there are ambitious citizens
in every one Of them who are will
ing" to serve the district or the state.
Consequently, the job Of building cam
paign fences is under way, and the
biennial horse trading of the politi-
clans has begun.
The horse trading Of the current
session, however, is going to be con-
siderably different than in most ses-
sions of congress. One Of the reasons
why the trading will be different Is
that man who sits in the White House.
Ordinarily, maneuvers are carried out
on the floors Of the house or senate
that are designed to enable this or
that individual to obtain reelection
and they are accomplished with little
or no interference from the President.
President Roosevelt has his program,
however, and unless the boys and girls
making up the membership of congress
line up correctly, they won't get any
smile from the Chief Executive when
such a smile and some kind words