The Nonpartisan Leader Newspaper, June 21, 1920, Page 6

e T S T i T S Money Trust ¥ 1ghts the Governmentf Mortgage Bankers Claim to Be Able to Influence Supreme Court of the United States—Block Farm Bank Loans - HE conspiracy of the banking interests to destroy the federal land banks and release the loan companies from com- petition with the low interest rates of the federal institutions already has re- sulted in the bankers raising interest rates from 1 to 3 per cent throughout the North- west, and in many instances the bankers now are demanding a cash bonus of from 2 per cent upward, according to E. G: Quamme, director of the St. Paul Federal Land bank. ° “We will have to turn down about 10, 000 farmers during the next few months as a result of these at- tacks,” Mr. Quamme announcéd. This is what has happened thus far in the fight of the mortgage bankers against the govemment institutions: Suit ‘'was filed attacking the constitutionalify of the farm loan banks and also attacking the provi- sion by which their bonds are exempted from taxa- tion. After a hearing before the United States cir- cuit ‘court of appeals at Kansas City this suit was appealed to the supreme court of the United States. The result of this suit was that instead of being able to sell federal farm loan bonds at 4% per cent, the land banks were compelled to issue b per cent bonds and charge the farmers 5% per cent interest on loans. The suit before the United States su- -preme court cast a shadow upon the legality of the ~bends and made them difficult to sell, just as the * farm loan banks from operating during the ' propositions were put before congress. . Mazrch 1, 1920. -This would ‘provide no money for farm loans approved from N ‘these loans because bonds could not: be suit. against the Bank of North Dakota made it difficult to sell its bonds." On May 12 the supreme court of the United States, after considering the case for some months, announced that a rehearing would be held, and set the case for reargument for October 11, 1920. This meant not only that a final decision would be postponed several months more but in- dicated, in the belief of many people, that 5 the supreme court was evenly divided upon S the question. The supreme court consists of nine justices, but Justice Brandeis is disqualified in this case, having been inter- ested in upholding the farm loan bank sys-! tem before he was appointed to the bench. The result of the case being set for re- argument was virtually to prevent -the period that must elapse before the case can be settled finally. - Thousands of applica- tions for farm loans were before the farm loan banks all over the United States. There was no money available to make sold. As a result the farmers had to turn. to the mortgage bankers, getting loans at 7 or 8 per cent or higher, instead of at b or 5% per cent, and often paying a 2 per cent “bon.s”? besides: CONGRESS DEFEATS BEST RELIEF PLAN Appeal-then was taken to congress to . use government money to purchase these bonds while the suit was pending. . Two One was te appropriate. sufficient money to . buy bonds sufficient to make all loans that might be approved by the farm loan banks up. to March 1, 1921, by which time a deci- sion ‘might be expected by the supreme court of the United States..” The other proposition was to appropriate only enough money to meet farm loans approved before * March 1, 1920, until the decision of the supreme court is handed down, perhaps a year from 1fow. The question came up first in the house of representatives. As might have been expected the bill granting only the smaller amount of relief was passed. The proposal to authorize the secretary of the treasury to buy farm loan bonds to cover loans made up to next Mareh was defeated by a vote” of 148 to 121 The same question came up ; m the senate; The senate ‘took the same ground as the * house, passmg the bxll providmg for' HOOVER Sovy we - MUST INPORT FOOD WITHIN purchasmg of bonds covering farm loans approved prior to March 1; 1920, el " The second: proposal, to: allow the purchase of bonds to cover loans up until March 1, 1921, then was brought’ up. This is what happened taken from the Congres- sional Record of May 19, page 7887: i “Senator Gronna—I move that. the Jomt resolu- tion (S. J. Res. 196)-extending the provisions of an act amending ‘section 32 of the federal farm loan -act, approved July 17, 1916, to June 30, 1921, be indefinitely. postponed. “The motion was agreed to.” .- So by motion'of Senator Gronna of North Dakota, who has posed as a friend of the farmers, tens of thousands of farmers throughout the United States, = whose applications for loans have been: approved by federal farm loan banks since’ March 1, 1920, must be turned down. . Gronna, it may be noted, is the candidate of the anti-League politicians - of North Dakota for re- election. Are the mortgage bankers of Amenca stronger " than the common people, able to influence congress, able even to mfluenee the supreme court of the United States? : The Leader does not say so, but they say so them- selves.. Following is a circular letter written by W. M. Heckler of the Wells-Dickey company, aneapohs, : chairman of the membership committee of the Farm Mortga.ge Bankers’ assoclatlon of Amerlcakto p HIS HANDS TIED —-Drawn expreesly for t'he Leader by W. C Moms. The. governmen% advises the farmer to grow more crops. Yet within the last few months the government has refused to come to the relief " of drouth-stricken farmers of the Dakotas and Montana; has refused ' to change the unfair wheat grades in the interests of the farmers; has “allowed: market gamblers to resume their manipulations of wheat. prices; resulting in'a drop in the price of wheat immediately upon the - ‘ending of government control; and finally has refused to help any ap- ‘plicants for farm loans this year, 1eavmg farmers ‘who must have ge ba 'l'he f“:;:ds gets' ~.sociation of America. The :farmers are ‘backing “Doctor E. F. - ‘Ladd, president of the North Dakota Agricultural - college, a proved friend of the farmers for the last _-quarter-century. ™ "mortgage bankers not vet members of the ass0- c1atlon “Gentlemen We inclose herein specxal bulletin ‘No. 66, issued by the Farm Mortgage Bankers’ as- time, sometimes three or four times a ‘month, to the members of the association, and shown. the way the wind is blowing each time. COSTS $25 TO JOIN THIS BROKERS® “LEAGUE" “You will note the remarks in regard to the su- preme court in the matter of passing on the con- . ‘stitutionality of the tax exemption feature of the ‘land bank bonds. Most of us believe that the su- ~ . preme court did not care to render their decision, which ‘I interpret to.be unfavorable to the land banks but favorable to us, until after the next elec- tion. At any rate, tbe Farm Mortgage Bankers® association, T think, is directly responsible for the This is the only one .of a " series of bulletins which are issued from time to" federal land banks and joint stock land banks not being in operatnon today and not being able 1o Oper- ate until some time next year. - " “I am wondering if this fact alone is not worth considerable more to you than the small fee for which we charge for membership in the association;. and, as a matter of fact, don’t you think that the. association is entitled to support, both financial and moral, in their work for the betterment of farm - mortgage dealers? If you agree with’ us~will you kindly fill out the enclosed a; plication and send it t6 me with your check for $25 which will pay 4our fee until September 1? The check should be made payable to N. D. Chassell, secretary and treasurer, ] but send it to me. : “Respectfully yours, o “W. M. HECKLER, “COUNTRY GENT” LOSES Since the “Country Gentleman” has been attacking the Nonpartxsan Jeague it has noticed ‘'a severe loss in its “circulation among the farmers. In consequence the so-called “farm paper” has gotten out" a circular letter which is being mailed to all farmers who fail to renew their subscrip- tion, -asking why the former subsenbers i are dlspleased with it. This is a sample of the rephes that ‘the: “Country Gentleman”. is get‘cmg from League members: “Editor Country Gentleman: _Trenew my- subscnptxon. “Never a.gaxh will T give a dollar to any paper or magazine which is not. either firxendly _or neutral toward' the Nonpartisan league. Let me ask you what has the League done to the Country Gentleman that its columns should be filled with such bunk as has been printed. I pay my $18 regularly and get my ‘money’s -worth lis- tening to the other papers knock. - We * farmers who think and do thmgs refuse to- stand tied any more. ‘me take care of the lambs and colts; help me to get in this crop under the most " damnable conditions that a farmer ever had to work under. Then be here when I sell this fall and you will see why we stay with the League. : “Emory, Mont.” 3+ L % ; 2 CITY MAN. AGER PLAN Umted States now have adopted the city ;manager plan of government. ‘Dubuque, - employed as’city manager Ossian A. \Carr, ‘who previously had managed Cadillac - Mich., Nlagara Falls, N. Y., and Spnng- field, Ohio. The city ‘manager plan allows - a city to empioy the most competent m £ manager, tzl‘legardles of wh “Chairman Membershlp Comnuttee.” i I have your letter in_which you want:me to: “Come out here and 'stay a week' help : 4 ,ELSPRIGG.;‘_ . Dne hundred and’ elghty cities in- the o Tl { Towa, is ‘one of the latest. - Dubuque. ‘has '