Evening Republican, Volume 22, Number 297, Rensselaer, Jasper County, 11 December 1919 — POINTS FROM M’ADOO'S KANSAS CITY ARGUMENT. [ARTICLE]

POINTS FROM M’ADOO'S KANSAS CITY ARGUMENT.

Successful farming is basic to the general welfare. Conditions which denied to the farmer ample funds for operation and adequate credit facilities for the purchase of land and improvements were of grave national concern. Therefore, a rural credits system was devised as a part of the financial system of the nation in order that the great industry of agriculture, the source of the nation’s food supply, might htfve an equal chance with other lines <rf business and industry. Federal land banks were created to provide credit and money for the borrowers of small means —plenty of money at low rates of interest and on long-time credit These banks were formed by the government subscribing most of the capital stock. Joint stock land banks were created to provide credit and ■money for farmer borrowers of larger means —in order that the large borrowers might not take all the money the farm land banks had to lend and thus leave the small borrower without funds. These banks are privately owned, but are operated under government supervision and are subject to all the essential restrictions placed upon the federal land banks. To make farm loan bonds attractive to investors, and to make it possible for these bonds to compete with municipal bonds, the government made them exempt from .all federal, state and local taxes. Without tax exemption, the whole farm loan system would have failed absolutely.