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The Daily Worker
Chicago, Cook County, Illinois
What is this article about?
The Coolidge administration accelerates aid to wheat belt banks failing due to bad farm loans, forming a syndicate and opening a War Finance branch in Sioux Falls, SD, while offering no direct relief to farmers. Multiple banks close in IA, ND, and SD.
Merged-components note: Merged headline and body of the article on Coolidge aiding banks but not farmers from page 4; relabeled from story to domestic_news for consistency with non-narrative news format.
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Wheat Belt Banks Failing Right and Left
(Special to The Daily Worker)
WASHINGTON.- The Coolidge administration is speeding up its plans to aid the banks in the wheat belt. The plans are being accelerated because of the failure of the big Guaranty Trust company of Kansas City which has just been taken over by the state finance commissioner because of a shortage of working capital resulting from a surplus of farm loans.
As a first step a syndicate of metropolitan bankers of the middle west will be formed by the government to underwrite loans in order to relieve the credit situation.
Nothing for Farmers.
No direct relief for the farmer himself is in view for the immediate present. The administration will instead seek to restore working capital to the banks who hold mortgages on the farmer's lands and equipment.
Invitations to the bankers have already been sent out, following a conference between Secretary Hoover and Secretary Wallace with President Coolidge. Governors of the affected states will also be invited.
South Dakota Banks Aided.
The Treasury department announces that Eugene Meyer, Jr., managing director of the War Finance corporation wires that a branch agency of the corporation has been opened at Sioux Falls, South Dakota, to relieve the strain on local banks.
MUSCATINE. Iowa.The Iowa state banking department closed the Citizens' Savings bank of Letts, Iowa. A surplus of bad loans to impoverished farmers was the cause.
CHICAGO.-"Unless farming is made more profitable in this country it is going to languish and if it does the entire nation will languish," said ex-Governor Lowden at the La Salle Hotel.
BISMARCK. N. D.-The state bank examiner announced the closing of the Farmers' State Bank of Church's Ferry and the Security Bank of Oberon-bad farm loans, the cause.
SIOUX FALLS, S. D.—The Presho State Bank at Presho, S. D., has closed. Plans to reorganize the Sioux Falls Trust & Savings Bank, which failed last week, are being made.
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Where did it happen?
Domestic News Details
Primary Location
Wheat Belt
Key Persons
Outcome
failure and takeover of guaranty trust company of kansas city; closure of citizens' savings bank of letts iowa; closing of farmers' state bank of church's ferry and security bank of oberon in north dakota; closure of presho state bank at presho south dakota; failure of sioux falls trust & savings bank with reorganization plans; government formation of banker syndicate to underwrite loans and opening of war finance corporation branch at sioux falls to aid banks; no direct relief for farmers.
Event Details
The Coolidge administration speeds up plans to aid wheat belt banks amid failures from surplus farm loans, starting with a government-formed syndicate of middle west metropolitan bankers to underwrite loans and relieve credit strain. Invitations sent after conference between President Coolidge, Secretary Hoover, and Secretary Wallace; affected state governors invited. Treasury announces War Finance corporation branch opened at Sioux Falls South Dakota by Eugene Meyer Jr. to ease local bank strain. Specific causes include bad loans to impoverished farmers. Ex-Governor Lowden states farming profitability is essential to avoid national languish.