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

turned cOlu shoulder upon
those in need for funds to pro
duce and harvest crops.
E. F. Lyman of Great Falls, a pro
ducing farmer has written a letter tc
the chairman of the legislative com
mittee of the American Bankers AS
ISOLATION clarifying the issues in
volved. The circular letter from the
association to the bankers and Mr.
Lyman's letter to the chairman, are
printed in full below:
THE AMERICAN BANKERS
ASSOCIATION
% East 40 Street, New York, N Y
Branch Office
Washington Bldg, Washington, d. G.
July %. 1913
To the Member Banks:
Please give this letter to the officer
of the bank who is most interest in:
1. Federal legislation.
2. Government competition with
private credit.
3. Preserving private enterprise.
4. Direct personal action on the
legislative front.
Dear Sir:
There has been a lot of talk among
bankers in recent months about what
congress ought to do or ought not to
do. Most of this talk has been among
ourselves. The time now has come
for bankers to do some talking direct
ly with the only people who can do
anything about these matters = the
members of congress, your represent
alive in Washington and your sena-
tors
Congress is in recess for the sum-
mer and most of the congressman are
at home. They are at, home for two
purposes: first, to get away from the
strain and turmoil of Washington and,
second, to get the viewpoint of the
people at home. That gives us an OPP
portunity and a responsibility. The
only question is whether we will per-
form this duty and utilize this oppor-
tunity NOW to give our Washington
facts about banking
and our views on legislative matters.
The A. B. A. can do certain things
in Washington such as: secure the
of bills; conduct hearings
and investigations; plead the cause of
chartered banking before COMPRESSION
al committees, administrative agen-
cies, and so forth. There is one thing
it cannot do: it cannot contact a
majority of the 435 representatives
and the SO members of the senate on
a legislative proposal. That is a job
that only the folks back home can
do. On banking legislation, it is a
job that only you and the other bank
ers can do.
The winter session of congress prob |
ably will witness a showdown on the
question of government subsidized |
and socialized credit. How your SEN
itors and representatives vote on leg |
Station involving these issues may be
by the information and
that you and other bankers
give them this summer.
AS chairman of your committee on
ederal legislation, | am calling on
you to perform that service for char
cred banking and to do it now
Two major fights in the field of
agricultural credit are just ahead.
)ne is to compel the Production Cred
t System to pay its own way. This
hould be done by eliminating the
government subsidy it now enjoys to
he extent of the income on $120,000,-
100 of government funds which it has
zen using for the past eight years.
The peas use 100000 of income
yer year from these funds to make
low interest rates on loans
nd to pay expenses and losses.
Private capital naturally cannot
ompete with such credit that is sub
idized by the government Further
lore, other government agencies and T,
Employees help drum up business for
be peas. All of this is at the tax
ayers expense Advertisements for
pans are deceptive and untruthful, /;
laiming rate of Az % when the l
ctual cost to the borrower is usually
% or higher. If private business s
ollowed such practice, it would
uickly feel the hand of government &
rosecution. s
The second fight is in the field of t
ocialized credit-U. S. Treasury dis {
under the guise of loans {
trough the RACE, the Emergency {
rop and Feed Loan Office, and the :,
arm Security Administration i
eparate agencies, three nationwide I
Governmental organizations, using i
of millions of dollars of i
reasury funds now sorely needed in I
lie war effort while billions of dol i
rs of bank deposits are starving for c
opportunities for employment The