The nonpartisan leader. [volume], June 21, 1920, Image 6

About The nonpartisan leader. [volume] (Fargo, N.D.) 1915-1921

Image provided by: State Historical Society of North Dakota

                
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This is what has happened thus "far in the fight
of the mortgage bankers against the government
institutions:
Suit Was filed attacking the constitutionality 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 5 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
bonds and made them difficult to sell, just as the
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 mpnths,
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
the supreme court was evenly divided upon
the question. The supreme court consists
of nine justices, but Justice Brandeis is
disqualified in this case, haying 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
largument was virtually to prevent -the
farm loan banks from operating during the
period that must elapse before the case can
be settled finally. Thousands of applies-^
tions for farm loans were before the farm
loan banks all_ over the United States.
There was no money available to make
these loans because bonds could not be
sold. As a result the farmers had to turn
to the mortgage bankers getting loans atj"
7 or 8 per cent or higher, instead of at 5
or 5% per cent, and often paying a 2 per
cent "bon-to" besides.
CONGRESS DEFEATS
BEST BELIEF PLAN
I'
frThe
Appeal- then was taken to congress to
use government money to purchase these,.
bonds white the suit was pending. Two
propositions were put before congress.
One was to appropriate sufficient money to
buy bonds sufficient to make all loaiis 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. This would provide no
money for farm loans approved from*.
March 1, 1920, until the decision of the
supreme court is handed down, perhaps a
year from flow.
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 March'was defeated by a vote
jfbf 148 to 121.
The same question came up in the senate
senate took the same ground as the
house, passing the bill providing for
mmm
1 rust "rights.
HE conSpiraey 'of iJiV banHnV'totWekts purchasing of bonds "cbvering farm loans' approved
to destroy the federal land banks and prior to March. 1, 1920.
release the loan companies from com- :V .The second proposal, to allow the purchase of
petition with the low interest rates of. ''tfimds to cover loans up until March 1, 1921, then
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 froga 2 per cent upward,
according to E. G. Quamme, director of the St. PauL
Federal Land bank. §fc?
"We will have to turn down about 10,000 farmer^"
during the next few months as a result of these at
tacks," Mr. Quamme announced.
p,vi"The
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MUST IMPORT
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Mortgage Bankers Claim to Be Able to Influence Supreme Court of the
United States—Block Farm Bank Loans
was brought up,
SfThis is what happened, taken from the Congres^f -'.
sional Record of May 19, page 7887
"Senator Gronna—1 move that, the joint resolu.-'
tion (S. J. Res. 196)-extending the provisions of an
act amending section 32 of the federal farm loan
act, approved July 17i 1916, to June 30, 1921, be
indefinitely postponed,
motion was agreed t6."
^CSSoby 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 haye been approved
by federal farm loan banks since March 1, 1920,
must be turned down.
Gronna, it may be noted, is the candidate of thfe
anti-League politicians of North Dakota for re
election. The farmers are ^backing Doctor E. F.
Ladd, president of the North Dakota, Agricultural
-college, a proved friend of "the farmers of .the last
quarter-century.
Are the mortgage bankers of America stronger
than the common people, able to influence congress,
able even to influence 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, Minneapolis,
chairman of the membership committee of the
Farm Mortgage Backers' association of Americano
HIS HANDS TIED
^f^r-jPS
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if
vy
SPISf^P
-Drawn expressly for the Leader by W. C. Morris.
The government 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
to change the unfair wheat, grades in the interests^ of the farmers has
allowed market gamblers to resume theiiv 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, leaving farmers who must have
money at the mercy of the mortgage bankers. The farmer gets
advice from the governtfent but heljJ is what he needs.
and'Montana has refused
mortgage bankers not yet members of the asso-
ciation:
"Gentlemen: We inclose herein special bulletin
No. 66, issued bjf the Farm Mortgage Bankers' as
sociation of America. ThisTs the only one. of a
series of bulletins which are issued from time to
'kr 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, the Farm Mortgage Bankers*
association, I think, is directly'responsible for the
federal land banks and joint stock land banks not
being in operation today and not being able to dper-^t
ate until some time next year.
"lam wondering.if this fact alone is not "wortii
considerable more to you than the small lee fox
which we charge for membership in the association,,
and, as a matter of fact, dont you think that the.
association is entitled to support, both financial and
moral, in their work for the betterment of fajtn
mortgage dealers? If you agree with us^-will you
kindly fill out the enclosed application and send it
td me with your check for $25 which will pay ^our
fee until September 1 The check should be made
payable to N. D. Chassell, Secretary and treasurer,*
but send it to me.
'^Respectfully yours,
"W. M. HECKLER,
'-'Chairman Membership Committee."
"COUNTRY GENT" LOSES
Since the "Country Gentleman" has been
league it has
its circulation
consequence the 7||
so-called "farm paper" has gotten out a
circuliir letter which is being mailed to all
farmers who fail to renew their subscrip
||§pJtiori» -asking why the former subs«iribers
re displeased with it.
This is ai sample of the replies that the
I "Country Gentleman", is getting from-"
League members:
J^^S^j^Editor. Country Gentleman: I have
your letter in^iyhich yojj want me to
renew my subscription. Never again
will I give a dollar to any paper or
magazine which is not either friendly
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
jwSff" tening# to the other papers knock. We
farmers who think and do things refuse to.
stand tied any more.
"Come out here and stay a week help
me take ciare 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. E. SPRIGG.
v"Emory, Mont."
CITY MANAGER PLAN^
JOne hundred and eighty cities in ihe
United States now have adopted the city
manager plan of government. Dubuque,
Iowa, is one of the latest. Dubuque has
employed as city manager Ossian A. 'Carr,
who previously had managed Cadillac,
Mich., Niagara Falls, N. Y., and Spring
field, Ohio.. The city manager plan allows
a city to employ the most competent man
for manager, regardless of whether he is
a resident of the city or not.
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