Evening star., 1937-04-18


Federal land bank loans were
cut from AZ per cent to ga t,Do
years ago as an "emergency" meas
ure and it is proposed noW to con-
tmue the rate tWo years more after
July /.
Opposing this "easy-money" pro-
gram, GoU. w. /. Myers of the
Farm Credit Administration said it
costs the Treasury $1,000, 900 an
nually
b the Associated Press.
A fierce congressional controversy
developed yesterday out of an admin
stration proposal to increase farm
interest rates as means of prevent
ing an inflationary land boom"
Senators Borah, Republican, Of
Idaho and Wheeler, Democrat, of
Montana quickly challenged the sug-
gestion by Gov W. I. Myers of the
Farm Credit Administration that the
emergency 81 per cent interest rate
on land bank loans be permitted to
expire July l.
Wheeler, who forced the low ener-
gency rate through the Senate, char
acterized as sheer nonsense" Myers
statement that its continuation might
stimulate a harmful land boom.
Borah, calling attention to the
administration bill to relieve farm
tenancy, said the best way to handle
farm tenancy" is Ito make it possible
for the farmer who now owns his
farm to continue to own it."
The two sharp senatorial statements
were inspired by Myers testimony
before the House Agriculture Commit
tee Friday against continuing the
emergency 81 per cent rate for two
years longer.
Fear of Land Boom.
1T appears quite possible" he told
the committee, that if the Federal
land banks continue to finance the
purchase of farms at an artihcially
low interest rate it may have the
effect of stimulating land boom and
ultimately may have a far-reaching
and undesirable effect on the whole
structure of land values in the United
States"
Wheeler quickly seized on the pro-
posal as new argument in his battle
against the Roosevelt court reorgan-
ization bill.
Asserting there was no better way
for the Government to help farmers
than by providing low interest rates,
the Montana Senator said 1T isn't
necessary to pack the Supreme Court
or to change the Constitution in order
to help the farmer of this country
get out from under the load of debt
he has been carrying"
Wheeler added that the interest
move was in conflict with the adj
ministration claim that the only
thing standing in the way of assisting
the farmers was nine old men on the
Supreme Court"
This demonstrates the insincerity
Of the Department of Agriculture and
the head of the Federal land banks In
carrying on their reprehenslble propa-
ganda against the court in order to
cover up their own mistakes" he
added
Price-Fixing Results.
TT should be borne in mind that
everything that the farmer has to buy
went up in price as result of the
price-fxing methods adopted under
the N R. A.; and those prices did not
come down even after the N. R. A. was
abolished, but have continued to in
crease
ITO raise the interest rate on the
farmer is unthinkable
Borah also stressed the price Of
things the farmer must buy. His
statement follows:
Governor Myers lays stress on the
fact that the farm index price is back
again nearly to where it was in 1890.
But what was the condition in 1880
and In 1928 and 1929? Farm tenancy
was growing at a rapid rate, farm
mortgages were being foreclosed, and
tax sales were on a large scale.
In addition to that, taxes are
higher. The prices of things which
the farmer has to buy are higher.
The implement trust is still doing
business at the old stand. We now
have in Congress a farm tenancy
measure. 1t proposes to start with
an appropriation of s50,000000, which
will not be drop in the bucket if it
is to be effective. Is it not far better,
in dealing with this question of farm
tenancy, to make it possible for the
farmer who now owns his farm to
continue to own it? That is the very
best way to handle farm tenancy.
The present increase of farm tenancy
Is very great.
I'm addition to that, let me say,
that the farmer cannot pay an in
terest which Gov. Myers calls a
business-rate Of interest. 1t is not in
the business. And, unless We find
some way by which to give the farmer
a lower rate Of interest, there is no
possible way to stop the spread Of
farm tenancy"