The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-09-14
SHANCLER ASSAILS
LOAN COMMITMENT
CANCEL|NG BY FCA
Manager Of Bank Of North Da-
kota Declares Procedure Is
Hardship on Farmers

wholesale cancellation OF COM
mitments made In farm loans by the
federal land bank and commissioner
were criticized by r. M. Stangler
manager Of the Bank Of North Da-
kota, in q statement to the state in
dustrial commission, who maintained
the procedure Is working hardship on
farmers Of the state.
Gov. Ole H. Olson, in kilograms to
federal officials, has protested against
cancellation Of the commitments,
and asked for an extension of them
for 30 days. The extension plea was
refused by w. I. Myers, governor OF
the FCA, although Myers said mo
worthy applicant showing just cause
for delay will be penalized."
Tn some instances" Stangler said,
''rotices Of allowance are being can
celled where the commitments have
only been out for two or three months.
We believe that this wholesale can
collation. Of commitments should be
discontinued by the federal land bank
and land bank commissioner, for at
least a period Of 80 days. 50 that
the farmers and creditors can get
together with q view OF refinancing
and repurchasing these homes"
Cites Seven Reasons
Seven reasons were cited by Stang
Ter In support Of his contentious.
Stangler said 1t was his understand
Ing that q new ruling had gone into
effect during the past month, whereby
eny loan cancelled could not be re-
irstated, but that it was necessary
for a new application. new fee,
new appraisal and new commit
ment.
Hundreds of farmers, Stangler said,
have set aside small amounts each
week out Of egg. cream and other pro-
duce checks, to raise the original ap-
plication fee, and that 1t would be
real hardship" for them to raise
q second fee.
While q real effort" Is being made
by larger creditors to close the loans
soon after commitments are made, rs
Per cent Of the creditors are holding
up loans by insisting on full payment
''or more than they are entitled TO-"
he said.
Many OF the commitments come
through, he explained. with the pro-
viso to pay all Indebtedness" This
Is difficult, he explained. because
many creditors live outside the state.
In number Of instances. stangler
pointed out, the loan is ready to
close when 3 new commitment has
come through, reducing the amount
available by several hundred dollars,
necessitating the work being done
over.
Few Farmers Have Contracts
Very few Of the farmers can afford
g spend the time or money to con-
tact their creditors. "An Of this
work must be done by the larger
creditors" stangler explained. land
very often commitment Is held up
for months by the second mortgages
refusing to accept q reasonable
amount for complete satisfaction Of
their mortgages"
VERY Often" stangler continued.
when we feel q commitment should
be increased or changed so the loan
can be closed and review Is requested,
No receive 4 new commitment reduce
ing the amount available or flat re-
lection"
He pointed out the Bank Of North
Dakota has cooperated 100 per cent"
with the farm credit administration
in the refinancing program and "our
liberal attitude toward scaling down
Indebtedness to bring 1t within the
farmers ability to pay has had q very
marked influence on other mortgage
loan companies and other creditors In
their scale down policy.
mot one regulation, to our know
ledge, issued by the farm credit ad-
ministration has been violated by the
Bank Of North aDkota. We feel Ger
tain that II survey Of all secretary
treasurers Of the National Farm Loan
associations In North Dakota is made
It will Be found NE have cooperated
In every way possible to close these
loans without delay"