Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1934-07-12


inform itself and determine a policy.
Such, however, unfortunately cannot
be said about most of the other inves-
legations that are running through the
summer and fall. There is the So
called munitions investigation. Thus
far, my searches have yielded little
information showing that this investi-
cation can produce anything construc-
tive. 1t, and several of the other in
vestigations, in my opinion, amount to
little more than fishing expeditions,
hope that something will be uncovered
so that some members of congress can
be amazed" or duly "dumbfounded"
by business practices Of firms that
have been in business half a century
or more. I guess the senators and
representatives have to have some
thing to be "amazed" about every so
often, but it does occur to me that if
congress really wants to economic.
it could limit its Investigations which
roughly will cost close to half a million
dollars this summer and fall.
Policies of the last several admins
trations in Washington have presented
many puzzling things,
u. S., Gredtestand some of them
Landlord move one to inquire
where it all will end.
For example, the Farm Credit admin
istration-the FCA of the alphabetical
soup-released a statement to the
press the other day to the effect that
the twelve federal land banks now own
outright 22,078 farms and almost own
thousands of others on which the loans
are in virtual default. I think it can
be said, therefore, that Uncle Sam has
become the greatest landlord in the
world.
While the information is more or
less startling that the federal govern
ment, through one Of its multifarious
agencies, now owns so much farm
land, the fact gives only an inkling of
what has happened in others Of the
various agencies through which it acts.
AS said, one can hardly help inquir-
ing where it all will end. 1 make no
attempt to controvert the policy of
federal loans on farm lands or homes
/ only can pause and wonder what the
future holds If the course is contin-
ued.
The farm loan banks have a total of
S82,939,OOO tied up in those farms
which they hold. The only way that
money can be withdrawn is by sale of
the lands. If they are sold. the chances
are new mortgages in varying amounts
will have to be placed on them be-
cause most buyers are not in a po-
sition to pay the whole sum in cash.
Some Of them again will default, and
the government agency again will-o
the land. All of which is by way of
saying that the idealist who walls and
crashes his teeth about the terrible
brute who forecloses has not yet
solved the problem of saving homes
that were bought on margin of cash
that was too narrow, or a home that
was bought by an individual who ran
into hard luck.
The point of it is that the federal
government is dabbling into every
thing. 1t is going beyond what gov
eminent ought to do.
When one examines the whole pic.
ture respecting government and it's
scope these days, it
Astounding is rather astounding.
Picture For instance, the Re-
construction FL
nance corporation announced the other
day that it was willing to help the
Baltimore & Ohio railroad refinance
its maturing bonds. l do not know
what the outcome will be, but it seems
to me that refinancing of railroad by
use Of government credit is hardly a
function Of government.
The Reconstruction Finance corpor-
alton is making loans continually. It
has loaned money to, or has bought
stock in nearly $500 banks. Propo-
nents of this policy contend soundly
enough that unless those loans had
been made, the banks which obtained
them would have gone on the rocks
and the depositors would have suf-
fered. But am still wondering If
it is the proper function of govern.
ment to protect private activities ia
the extent of guaranteeing out of the
public funds that shall get my money
back on any old investment or what
not into which 1 have put it. Some
way, am inclined to feel that govern.
ment, as such, ought not be dabbline
into things where it is required to in
sure that people will not be foolish
or crooked.
And there are going to be more
loans made. The last congress en-
acted law providing for loans to in.
dustry, the so-called small industries
loan legislation, it was called. Business
leaders and bankers tell me that the
government is going to find itself own
ing a lot of business wrecks through
those loans. The bankers say that II
a business has chance to survive
which means it can pay expenses, II
can get money at ordinary banking
houses. If the government is going tC
make loans only to those unable to gel
bank loans, the conviction | hear mos
often expressed is that the government
had better set up another agency from
which 1t can send supervisors or gen