The people's voice. [volume] (Helena, Mont.) 1939-1969, 1943-09-24

least the government should do is to
consolidate these agencies, reduce ex-
penses and costs, and lay down con-
ditions for loans by act of congress
rather than to give administrators
free rein to determine loaning pol
icies. Then, set up simple machinery
whereby the money may be provided
by banks and other private credit
agencies under an arrangement sim
liar to Commodity Credit Corporation
loans.
Most bankers know the facts about
the operations of these agencies in
their own states. 1t is highly import
ant to know the facts before you talk
to your congressman. Give cases,
illustrations, details Tell him some
thing about the job banking is doing
in the war effort-selling bonds, max
ing war loans, handling ration bank
ing. Tell him some of the problems
of banks, particularly of country
banks.
This is your task as a banker and
as a citizen. Talk the matter over
with few other bankers, then make
an appointment and call on your rep
resentative and your senators.
Their vote MIGHT decide the issue.
Your effort MIGHT determine their
vote. A great responsibility is yours.
Yours very truly,
A. L. M. WIGGINS, Chairman
Committee on Federal Legislation.
Mr. Lyman's answer follows:
Great Falls, Mont, Aug. 81, 1913
Mr. A. L. NJ. Virgins,
Chairman, Legislative Committee
! American Bankers Association
% e. 10th Street
New York, N. Y.
Dear Mr. Virgins:
My attention has been directed to
your article in the "Hoosier Banker"
for June, and to your letter of July %,
1913, addressed to banks, proposing
means of curbing Subsidized and So
cialized (farm) credit"
| am a farmer, a user of credit,
Production Credit Association stock
holder and director. May / give you
in this open letter my reaction, and
| will confine my remarks to the Pro-
duction Credit System alone
First, ] congratulate you on making
the detectives of your attack on the
PEA System so clear:
a. You want to re-establish the
bankers conception of budgetary
borrowing;
b. You want to restore the (for the
bankers) profit-making possibili-
ties of farm credit;
C. You want to funnel (that word
intrigues mel all sound credit
through the banks.
This frank statement is appreciated
The detectives show that you are
thinking of farm credit only in terms
of bank profits and, in order that you
may retain or recover to yourselves
those profits, you, who have no word
to say about a better system of fl
the farmer, propose to des-
troy the Production Credit System,
which from the point of dependability,
and adaptation to need, correlated
co-ordinated supervision and
economy of cost is as far superior to
any previously or presently proposed
farm credit system as the farmers
modern combine is to the old self-rake
reaper of the horse and buggy days.
The earth, may l remind you, Mr..
Virgins, is not turning in the direc-
lion of your proposals.
Your discernment is also commend
ably clear upon the point of the per-
of the peas and upon the
further point that sit will be the farm
ers of America who will determine
he pattern of agricultural credit"
The Production Credit System is
permanent because congress, faced
With the responsibility of reconstruct
ng a broken down national economy,
liscerned the necessity of liberating
arm credit from relationship to the
banks which with newt
lble and practicable recurrence left
uClplCSS anu uDlUlpl6-
nented as to its credit needs
So congress, at that time, built the
ystem, which you correctly state ito
re a system that not only was set up
s a permanent system, but was not
ct up as a supplemental credit sys-
EN-, it was set up as ANOTHER
redit system" and that system fed
rally chartered and endorsed is thus
rected among American institutions
With status, a function and dignity 3
n no degree inferior to the proudest q
ational bank, and beyond that impos-
ng manifestation of our permanency
has the yet more significant per-
1anency of having sunk its roots deep
nto the brains and hearts of millions
f American farmers and business
Continued on Page Three)