The Nonpartisan Leader Newspaper, January 27, 1916, Page 2

NN St e AR SR s ~in seeking a loan, TWO NOW GOYSs WE ARE NG~ »rfig'e HONEST mmncs CORN OI%GQN!‘LE AND 00 2 Wou AR ER - WHY NOT WNRDE_R THE 108 TOGETHER! Naa ] &-—e' &7 €& When Big Biz & Co. Organized It Was A Clever Idea, But---- A BoLY ¢DER! AND ERCH OF N WAY FROM poor § BIG BI2 (R < E.N"l AROUND THE e Al = Ny B l QT. North Dakota at the National Capital Washington, Jan. 25.—It is not in the power of human mind to devise for the doing of a simple thing a piece of machinery more complex, in- tricate, combersome and incompre- hensible than the Hollis or Senate rural credit bill, introduced week be- fore last as the ripe fruit of the work of the famous joint commission. It is as if a man having a bushel of corn to shell should erect in his back yard the Baldwin locomtiove works to shell it. Yet if we get any rural credit leg- islation at all this session it will be the work of genius, or something like it. We understand generally in the press gallery that is has the warm approval of the administra- tion and *that means it is going through or bust. - If it becomes a law, every man that wants to borrow money on land will be obliged, apparently,.to hire a lawyer to tell him how to preceed and then sit down and wait until the supreme court finds out what the act really means. Sacred Banks Recognized Some things, however, are reassur- ingly clear. The bill not only recog- nizes the sacred functions of ‘the banks in our affairs but favers us with two brand new kinds. What for? Well, there is to be one kind, called the federal land banks, that- are. to be strictly regulated by law, and an- other kind called the joint stoek land banks that are more or iess free to do as they please, thus delighting by affording variety, it is to be ac sumed. There is to be created a. federal farm loan board of five members ap- pointed by the President and draw- ing $12,000 a year salary each, a Tact that will certainly cheer some droop- ing hearts I know. 3 Divided: into Distrigts This board is to divide the-country into twelve districts and’ establish-a federal land bank i each-district. There is also to be in each distriet ‘a farm loan registrar, - whose func- tions seem ta be largely mysticl. The -banks are to have a minimum capi- talization of $500,000 each, and what- ever stock may be left unsuscribed for the United States Treasury takes. Under this act the manner of get- ting a farm loan would: be about like this—subject to the interpretations of the court and the discovery of the meaning of certain phrases. If the-farmer can pass with cer- tain qualifications ‘as-to- his purpsse mortgage on- the property. Farmer Tafces: His Ghoice: in. a national farm: loan assoeciation, provided: for: in- thisact. , There: are to bz two kinds of theze associations... “A” and “B7. Th> . farmer can join either.. He takes of designated. az "it says. he puts a first Then he’ subscribes: forthe stoi:i: ¥ Bv WILLIS J. RUTLEDGE Special Representative of the Leader at Washington the stock one share (par value $10) for every $200 of the face of his loan, and, delivers the mortgage to the association, A or B. The farm loan association, A or B, then subscribes for stock in the fed- eral land bank of that district to the amount of one share (par value $10) for every $200 of the loan desired, and delivers the farmer’s mortgage. The bank issues bonds for public purchase and gets money, which it delivers to the farm loan association, A or B, and the farm loan associa- tion, A or B, declivers it to the farm- er. ; A Legal Rate of Interest “Tke rate of interest charged for such loans shall not exceed the legal rate fixed by law for loans by nation- al banks.” That’s what the bill says on the im- portant sub’ect of interest and all You might care to make a note of that fact. There are seventy-one printed rag- es of this triumph of art. Get a copy and put in the long winter nights reading it. You will bz delighted and cheered—also instructed in the noble old science of how not to doit. which _is ‘ust ome of the most useful known to men. ¥ A Jey to Wall Street Meanwhile you might note that as tke new federal land banks and joint stock land banks are to hook up with the present federal reserve banks, whose ownership in our highest fin- ancial eircles- is well known, there is no chance that the bill may mater- ially change any fundamental condi- tion that now exists as to farm loans, and that is, indeed, a fact full of joys—to the corner of Broad and Wall . in ‘whose interest, primaril;{ this re- have been markable measure seems to drawn. Washington, Jan. 24.—We have in this congress, as in most congresses I have been acquainted with, an over- supply of the kind of statesmen that think the agricultural problems. of this country can be solved. by giving. the farmers a KIND WORD and wish- ing him -well, and tken leaving him for mere important matters.. = A brilliant example of this view of , the agricultural crisis is to be found . ‘in. Sénator Fletcher’s joint resolution about the marketing of farm products. This. resolution starts .out with -some of the grandest language ever - put upon paper. “Whereas it is pat- ent that there are defects in the ecoromic. system of ‘the United States which affect producers: and. & consumers: of agricultureal prcducts,” is the way adversely . the .operative farming . enterprises, it begins, and hope beats high in the breast of him that reads. “Experi- ence has, however, proven,” if con- tinues, “that the 'solution of this question is not to bé found in non- governmental agencies,” nor in a governmental agency, but in” a semi- official governmsental agency,” which is what the resolution proposes. High Sounding Words “The rresent and at times abnorm- ally high prices for food products,” we are next told, “are due in large part to the prevailing haphazard and unbusinesslike methods in the dis- position of the products of the farm and the consequent uncertainty of returns to . the farmer on the one hand and the unreasonable high cost of living on the other.” Well, then what? - Why, here is the solution. The president is to ap- point a national marketing commis- sion of seven members who are to “organize a national chamber of agri- culture, with county branches. RN - Well, then what? Why, “the sole purpose of all the organizations shall clearly set forth to be the fac- ilitating and developing the market- ing and distribution of farm pro- ducts.” ; Well, but how? = By prayer and faith cure, I think. There is neth- ing else indicated. All these differ- ent chambers of agriculture are to think about marketing far products and the trick is done. What? Will not the farmer be gratfied with that arrangement seo kindly made for- his benefit? Tut, tut! He is unreasonable indeed. Favors Conferred But surpose instead of loading own Congress with such measures as this, of which we have a vast stocl this year, Congress should remember the almost inealculable riches it be- stowed in former years upon the or- ganizers of the Pacific railroad com- anies. Suppose it should remember ow often the United States treas- ury has released government funds in New York to save the speculative interests there. Suppose it shoyld recall the assistance government has given and is giving to private finan- cial enterprises.” And. : suppose: it state chambers and chambers in the states as should say; that ' agriculture, which. has never had anything but 4 GLAD SMILE is now entitled to aid for co- gov- ernment warehouses market free to all. There would teem to be spmeth’ihg- more- than ehean bunk . in - that; wouldw’t there? T But cheap bunk. is about all you and = an open are likely to hear from Congress at present. N Agriculturzl Subjects Among the developments of the week were the following that relat- ed toagricultural interests: - Senator Sheppard brought in a bill to establish in this country a system of rural credit founded -upon the landschaft bank system of Germany. Senator Gore introduced a cotton warehouse licensing bill. X Mr. Lever in the House brought in a similar measure, but providing for federal inspection as’well as licens- ing. 5 Mr. Randall in the House introduec- ed a bill to extend the rural free de- livery .service. The House passed the bill that al- lows homesteads to be enter&d to the extent or 640 acres for stock- raising purposes. It "also debated the Shackelford bill to-appropri- ate $25,000,000 from the national treasury in aid of good roads. Senator Newlands having intro- duced a resolution for a joint com- mittee to investigate the present condition. of interstate commerce, Senator Borah brought in amend- ment to have the committee also in- vestigate the government ownership of railroads, telegraphs and tele- phones. ' Conditiow of Farm Bills Present condition of fafm bills in this Congress: W Henry Rural Credit Bill—House agriculturre -.committee. Hollis Rural Bill—Senate commit- tee banking and currency. Keating Farm Women’s Bureau Bill —House agriculture committee. Shackelford Good Roads = Bill— *House committe of the whole. Ferris 640 acre Homestead Bill— Senate committee public lands. Copies of these bills, information relating to them = or information about any other matter now pending can be had from the Leader’s Wash- ington bureau. . La Foliette to Run : In spite of the efforts of the Con- fressional ~supporters of Senator Cummins to' keep a clear field for him in the North Dakota presidential anarles_in March, Senator LaFol- ette let it be known this week that he intends to run‘®as a presidential candidate in North Dakota himgelf. LaFollette’s . decision comes = as a - great disappointment to the Cummins’ campaign and.the result will probably . be that Senator Cummins will with= ttlraw'as a candidate in" North Dakos a. : - Prohibition for Philippines = The Senate this week adopted Sens ator Gronna’s amendment providing il ~for eo > i Tslands. ¢ . this amendment it is against