The people's voice. [volume] (Helena, Mont.) 1939-1969, 1941-11-19
A Five-Year Fight.
Started by a Spark.
So the Bill Passed.
Dividends and Dues.
Some Contribution!

OOInG contributions
Ending last weeks release of thi
perpendicular pillar of cooperation,
promise = or was it a threat? - wal
made that in this, the next release
you would get live story of the Ions
drawn-out fight against the interes
tribute exacted from the farmer. How
tough the going was for a man, il
town or country, to have and to hold
a home was shown from the fact that
lone-third of the national income went
to pay interest and the cost of crime
1t was clearly indicated that co-opera
ton had the effect of abating crime
and it's cost, because those having a
decent income and a home escaped
the pressure of desperation and the
| impulse to crime. 1t was as Tenny.
sons yorkshire Farmer" expressed
lit:
"'Tisn't them as has money, as
breaks into houses and steals"
But it took some doing by the Farm
ers Union Legislative Committee to
trim down the overload of interest
under which the farm family has had
| to stagger The farmers were under
contract" to pay 5 to percent in
terest Why? Because the bonds, is
sued and sold by the government to
get the money, called for the high
rate of interest. The Shylocks were
alarmed and cried as did the merchant
of Venice: 1T is so nominated in the
bond!" So far as history in the open
| is concerned the Farmers Union fight
for parity of farm interest started
with the public statement made by
NJ w. Thatcher, chairman of the Leg
islative committee, on December 16,
1886. This bit of carefully prepared
testimony was read and made a part
of the record before the Farm Ten
ancy Committee, body created by
President Roosevelt and of which
Henry A. Wallace was the chairman.
1t was the little spark that created
a great fire in the field of the inter-
est-takers.
Back in 1895, Mr.. Thatcher went
sold him on the idea that it was I'M
fair and an imposition ON the farmer
to be forced to pay or percent
interest on such real collateral as a
farm, when other groups in the United
States were able to borrow money for
-, 10 INT
the senator to see that the farmer
was entitled to parity of interest
rate. Then a legislative campaign
was planned and Senator Wheeler,
after two-day battle on the floor of
the senate, was able to amend a bill,
then in process of passage through
the senate, so as to provide for this
cut in interest rates at least on mort
cages held by the Federal Land Bank
to 81 percent. The house concurred
in the amendment and the bill with
the amendment went to the President,
who vetoed it.
Congress over-rode the vetoH That
meant that the congress, by more
than two-thirds vote, supported the
Farmers Union stand. Every year
since then, the congress has appropri-
ated more than 40 million dollars to
pay the difference between the 3 "
percent interest rate and the or 6
percent that the farmers had con-
tracted to- pay. The bondholders of
the Federal Land Bank system to this
day still collect the rate at which the
bonds were sold-but the farmer only
pays 31a percent. Forty million dol
lars year would pay a lot of patron
age dividends or annual dues of the
F. U.
When, in August 1899, the so-calIed
"Spend-Lease" bill was introduced, |
designed to create employment, an
other chance came for the Farmers
Union to help the farmer The Farm |
ers Union amendment was offered to |
the bill which would provide a huge |
reservoir of funds to be used to pro- |
tect farmers being foreclosed by the |
Federal Land Bank system. Senator |
carried that fight through |
the senate and had it approved by a
vote of "a to 81 That vote put the |
Federal Land Bank on notice. Though |
the bill never passed, the scared Fed
sral Land Bank, by administrative pol
icy and ruling, actually created a NOR
atorium on farm debts. Since then,
t has been rare thing to find the
Federal Land Bank foreclosing a farm
mortgage except with the voluntary
consent of the farmer or where fraud
vas established.
1t was some contribution to make
n five years to the farmer which re-
ieved him of an onerous interest rate
Ind protected his home against fore /
closure. Well, the Farmers Union
made it - practically single handed. /
Better join a group that does things.
rhe farmers of this nation will never
orget Mr.. Thatcher's work, which
,rought the interest rate on farm
mortgages in the Land Bank system
own to 31a percent and stopped
uthless policy of mortgage foreclos-
re.