The Western news. [volume] (Libby, Mont.) 1933-current, 1934-01-11

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 abll-
ity of the federal government to bor-
row money.
The situation is this: the Farm
Credit administration originally had
a fund of s200,0O0000 which 1t could
use rather In its own way for relief In
desperate farm mortgage cases. 1t
could determine appraisals for itself
and do 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, 1t 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 its work.
Now, the Farm Credit adminlstra-
ton must sell bonds. 1t has authority
to sell them to obtain funds, but 1t 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 II 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, 1t would seem that congress
should be willing to guarantee the In
terest and principal without any argu-
ment. 1t Is situation, however. not
80 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. II one gets 1t, 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 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 a part of the national
debt. The national debt now Is around
S23 500. 100000. 1t can 60 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
i the extent that they have government
/ bonds, life insurance companies that
have invested your premium payments
and mine In bonds to earn interest vii
suffer. In short, an overlooking of the
national debt will wreak havoc. Anf
In the end, taxpayers will pay ant
i pay.
So that point where the politicians
ind themselves now Is at the cross
roads. They can not yield all of thu
demands of the farm leaders. Tha
would result In the things | have de
scrlbed. 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
manding now Is that the politician
make good.
The early weeks OF congress alread,
have demonstrated that the session |
going to be deyote'
Political to. considerable
Horse Trading extent 70 the ou,lo
Ing of campaigl
fences. Although the votes will no
be cast until November, there is dis
satisfaction with sitting members 0
the house and senate In many ball
wick. and there are ambitious citizen
In every one of them who are will
Ing" to serve the district or the stats
Consequently, the Job OF building can
paIgn fences Is under way, and tn
biennial horse trading Of the polit
clans has begun.
The horse trading of the currer
session, however. Is going to be col
siderably different than In most Sc
sIons of congress. One OF the reason
why the trading will be different
that man who sits In the White Hous
Ordinarily, maneuvers are carried OF
on the floors OF the house or senat
that are designed to enable this {
that Individual to obtain re-electic
and they are accomplished with lit
or no interference from the Presiden
President Roosevelt has his program
however. and unless the boys and cir
making up the membership OF congre
line up correctly, they won't get al
smile from the Chief Executive WHIT
\ such a smile and some kind wor,
would win the election. 1t Is a tout
spot for the candidates.
1t might be well to explain how Il
9 trading is done Just so the whole THU