Show FEDERAL LAND BANK LOAN SYSTEM ATTACKED f Berkeley California March 1 1920 Mr 11 Wm N. N Gardner N. N F. F L. L A. A Delta Utah Dear Sir Replying t to your letter of the of or Feb eb wherein you mention the notice appearing In is the Salt Lake Tribune regarding there being some question as to whether or not nol the Farm Loan Associations could obtain money from the Federal Land Laud Bank Dank at the present time we will state that the situation briefly Is la this Soon after the passage of the Farm Loan Act when it was found that the farmers would organize Into National Farm Loan Associations and the lea rea eral Land Banks were beginning to tomake tomake tomake make loans in large volumes the Farm Mortgage Bankers Association of the United States Stales which Is an association association association as as- of those money lenders who have had the farmers at their merc mercy practically speaking for tor so EO many years commenced a bitter attack on the farm loan system They tried in every way to hinder the work of the Bank Dank through their members refusing refusing refus refus- ing to release mortgages that the they had on farm lands when the farmers were applying to the Federal Land Bank Dank for loans They bought space in lu a great many papers In the country country country coun coun- try and flooded the country countr with pamphlets attacking the farm arm loan system as a whole They threatened suit for two or three years and finally finally finally final final- ly suit was instituted by one Olle of their members attacking the constitutionality constitution constitution- of ot the farm loans generally and the constitutionality of at the tax exemption exemption exemption ex ex- ex- ex emption of ot the farm tarm loan bonds In the Federal Court of Kansas City Missouri 1 where the suit w was was s tried the Federal L Land nd Banks won the case It was appealed to the Supreme Court of the thc United States arguments were ma made je on the of January On account of the Supreme Supreme Supreme Su Su- Su- Su preme Court taking a vacation during the month of at February we have not received a decision We expect a de- de cison however either on the first or eighth of March Pending the receipt of this decision decision decision deci deci- sion we were Instructed by the Farm Loan Bureau Dureau to discontinue for tor the time being at least accepting new applications If the decision is against the Banks it meanS mean's means more than likely that the rate of interest will have to be raised If it is favorable and we anticipate a favorable decision we will proceed with making loans as heretofore Any applications that you might receive until the decision Is handed down should be received with the understanding that the loans will be made providing the decision is favorablE favorable You will be advised as soon soon as we learn of ot the decision and If favorable favorable- an appraiser will be assigned assigned assigned as as- signed to appraise the applications now in your hands Yours truly THE FEDERAL LAND BANK OF BERKELEY By Willard D. D Ellis Secretary Our comment on the above is this Locally there has has been much attempted attempt attempt- ed agitation that the poor downtrodden den farmer whose wants are never lIst listened ned to was again being ground to a powder by the heel of at oppression et etc etc In that the Federal Reserve i Banks Danks had found It nee esary to raise their discount rate The Federal Farm Land Bank Dank Is absolutely for the farmer for his In ln Interest ter terest st for tor his hla benefit benent to provide him with the very lowest rate of Interest on the longest time If he wants It that c can n be he gotten nothing will be spared to help finance our agricultural men nation But do not forget torget Mr Farmer that tho the profits of the past by the hands that wont won't and dont don't want to let go still Induce a fight against the Farm i Loan system The letter quoted above is Indicative of one OM assault Your way will be blocked by every possible means that competition can nn turn to If is up to you to keep a good organization and above all not notto notto notto to listen to those who are delivering a body blow to your co cooperative farm loan associations when they poison polson I your minds with something repeated against it We know of firms who wont won't release release release re re- re- re lease without two-thirds two of the Interest Interest interest Inter Inter- est being paid to them for tor the full time of ot the loan others that demand demanda a bonus to let you pay them off now What then theft of a fight they are and will put up against a system that will take from them practically all their good 8 Sand and 10 per cent loans on a aG 6 G per cent or less Interest rate The answer is read In the above letter attacking b by suit at law the constitutionality of the legislative act and the exemption of ot farm tarm lo loan n bonds specifically |