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About Heppner gazette-times. (Heppner, Or.) 1925-current | View Entire Issue (June 27, 1935)
f .--Qp. ical society
Volume 52, Number 16.
HEPPNER, OREGON, THURSDAY, June 27, 1935
Subscription $2.00 a Year
Mrs. F. H. Springer, Once
Local Teacher, Brings
MUCH BEAUTY SEEN
Farmers hopelessly in Debt, Am
erican Sales Methods Out, Tax
System Unique, Lions Told.
"As an American Views Japan"
was the topic of an address by Mrs.
F. H. Springer of Kobe, Japan, at
the Monday Lions luncheon. Mrs.
Springer was formerly Miss Addie
Quesinbury and taught In the
Heppner schools thirteen years ago.
She has spent five years In Japan
with her husband, and with her son
Richard has been visiting friends
here for two weeks.
Mrs. Springer dealt at some
length on the picturesqueness and
quaintness of the country and its
people. Farmers of Japan are
hopelessly in debt, and the major
ity can never hope to be relieved of
their debt burden, she said in touch
ing on the economic life. The
smallness of the country and the
Intensity of population makes It
Imperative that farms be small and
that the land be tilled intensively.
No such things as yards as known
in America exist in Japan. They
are known as gardens. Almost ev
ery home has its lily pond with
goldfish and profusion of blossoms
adding color and beauty to the
landscape on every hand. The
houses generally are lightly built
and scantily furnished, the Japan
ese finding it convenient to eat
from the same utensils In which
the food is cooked, and to sit and
sleep on the floors. Kimonas are
the national dress for both men and
The Japanese do not transact
business after the manner of the
Americans, making it difficult for
American high pressure sales meth
ods, Mrs. Springer said. In deal
ing with a Japanese one must first
pass the time of day to consider
able length, sip tea until one can
hold no more, then broach one's
business proposition. Maybe after
a month or two the deal can be
closed. Mrs. Springer's husband,
a lumber salesman, had the exper
ience of closing a deal after a year's
time. It was a considerable order
and worth it, she said.
In the cities most every home is
a factory where articles of many
kinds are made to export for goods
which Japan must import. Since
the 1923 earthquake with Its im
mense damage, many skyscrapers
built on American lines have been
erected in Kobe. Earthquakes and
typhoons are a constant menace.
Americans living in Japan find
heavy demands on their time in
carrying on relief work, said Mrs.
Springer. There is constant de
mand for relief among the mass of
poorer people, and no end to the
work which may be done.
Foreign schools, of which several
are present in Kobe provide educa
tional opportunities about equal to
common schools in this country.
While winter and spring bring
considerable rain, the wet season
comes in the summer, when it is a
constant chore to keep clothes dry.
Summer homes are maintained on
the coast, though surf bathing be
comes unbearable In some sections
at times due to large amounts of
refuse coming from Inland.
Asked about taxation in Japan,
Mrs. Springer said the Japanese
are overburdened with taxation
without means of escape. The gov
ernment Is coming to tax foreigners
heavily, too. A unique method of
assessment is used. The tax col
lector walks into the home and
takes its appearance as an indica
tion of the Income of the tenant,
basing the tax on that income. The
home of the manager of the Dollar
Steamship line was so appraised
and his tax based on an Income of
$800 a month, she said.
Earl Hunt was Introduced as a
club guest. Installation of officers
was announced for the next meet
ing, with Spencer Crawford as In
Mrs. R. A. Thompson and father,
W. C. Brown, attended last rites for
their uncle and brother, the late
D. S. Brown, at Condon Friday af
ternoon. Mrs. Ellen Bennett, sis
ter of Mr. Brown, was unable to
attend due to poor health.
Mr. and Mrs. Homer Hayes re
turned last evening from their hon
eymoon trip on which they visited
Albany for closing exercises at Al
bany college, and coast points. They
will be domiciled in the Gemmell
John Parker, son of Mr. and Mrs.
F. S. Parker and student at Uni
versity of Oregon for the past year,
Is attending R. 0. T, camp at Van
' Mr. and Mrs. S. T. Roblson were
shopping in town Tuesday from
their farm home in the Hardman
R. G. Sowers, who resides in Cal
ifornia, is visiting at the home of
his daughter, Mrs, John Anglln.
By BEULAH B. NICHOLS.
The stockholders of the Lexing
ton Farmers Warehouse company
met Saturday, afternoon and voted
to sell the warehouse to the Mor
row County Grain Growers corpor
ation. Harry Dinges, the present
manager, will be retained by the
Fred Nelson received a badly
sprained wrist Thursday when he
was thrown from a horse which he
A special meeting of Lexington
grange will be held Saturday night
for the purpose of Initiation. All
members are uitjed to attend.
Sunday was a gala day for Lex
ington grange members and their
families, for they motored to the
mountains for the annual grange
picnic, which was a grand success
with plenty of eats and everything.
About 60 people attended. Every
one, old and young alike, enjoyed
the baseball game in the afternoon.
Mr. and Mrs. Orville Cutsforth
and family, Miss Gladys Graves
and T. W. Cutsforth returned home
Sunday from a week's vacation at
Lehman springs. They came back
through the mountains and stopped
to enjoy the grange picnic.
Mrs. Harvey Bauman was a visit
or in Pendleton Friday.
Fred Mankiri of lone was a busi
ness visitor in this city Monday.
George Peck accompanied Frank
Parker and Harry Tamblyn to
Portland Thursday to see about
a flood control project for Morrow
Ralph Jackson made a business
trip to Spray Saturday.
Kenneth Jackson and Bunny
Breshears were members of a large
class of Catholic children who were
confirmed at the Catholic church
in Heppner Tuesday. The Bishop
from Baker was in charge of the
Mrs. George Peck and Mrs. Ar
thur Keene attended a quilting
party at the home of Mrs. W. T.
Campbell in Heppner last Wed
nesday. Mrs. J. G. Cowlns of Heppner
visited with her mother, Mrs. Geo.
Allyn, one day last week.
Dwight Misner of Thornton, Wn.,
was a business visitor in this city
Mr. and Mrs. Arthur Hunt and
son Dean spent Sunday with Mr.
and Mrs. Earl Hunt near Heppner.
Glenn Jones of Heppner was
transacting business in Lexington
Charles Notsons Reach
Chinese Mission Field
A letter received by Mrs. S. E.
Notson from Charles Notson and
his wife states that they arrived at
Hochow on May 18, their destina
tion in China near the border of
Tibet where they are entering the
They were two and a half days
on the trail from Lanchow to Ho
chow. They were met at Lanchow
by Rev. C. F. Snyder and Mrs. Sny
der and a Chinese boy, who came
down to escort them to Hochow.
They put their freight on a string
of eight mules. The Snyders and
Charles and the boy rode horses,
but as the weather was stormy go
ing over the mountains between
Lanchow and Hochow, they deem
ed it best for Mrs. Notson to ride in
a shantsi. This is a sort of basket
chair swung between two poles, the
front end of the poles being held
in loops of leather on a belt placed
around a mule, the rear ends of
the poles being held in similar loops
in a belt worn by another mule.
This enabled her to wrap up In
blankets and to be protected by a
sort of cover. Those who rode
horses were well dressed and had
an oiled sheet wrapped around each
of them. They encountered wind,
sleet and snow on the mountains.
It was very cold part of the time.
They slept in Inns the two nights
on the trip. They slept on kangs.
A kang is a sort of platform across
the end of the room, made of brick
or stone, and under the platform
is a sort of furnace, so the kang
can be heated. The heat was pro
vided by burning stable manure,
and the smoke escaped in the room,
which was not very pleasant. They
were glad to get up at 4:30 and
travel on. They used their own
bedding on the kangs.
The trail was steep and narrow
in many places, the snow and sleet
making many places very danger
ous. A committee of the local Chinese
church met them just outside of
Hochow, bringing with them tea,
boiled eggs, melon seeds, and some
little cakes for refreshments. Af
ter serving the refreshments and
visiting about an hour, they all
went into the city. There the local
people served a feast
Lanchow is the capital of Kansu
province and has a population of
over a half million. Hochow Is a
small city . on a branch of the
Hwang Ho river. It Is situated In a
beautiful little valley surrounded
by snow-capped mountains. It is
near the border of Tibet. The peo
ple are largely Moslem.
GRANGE I'ICMC SLATED.
Rhea Creek grange will hold its
annual picnic Sunday, June 30, at
the McDonald meadows, three
miles west of Burton valley. All
grange members and their friends
Invited. If you have been a grang
er or are thinking of becoming one,
come and join us. A welcome awaits
you. Bring a picnic basket. The
route will be well posted from the
Born, to Mr. and Mrs. Harold
Gentry in this city, Sunday, a 7V4
COMPANY 4255 COC
Lt. Hayes and Lt. Davis
Here With 12 Boys;
16 More Arrive.
READY AUGUST FIRST
Lumber to be on Ground Within
Two Weeks; Main Contingent
Coming from New York.
First ground was broken Tues
day in construction of Heppner's
CCC Soil Conservation camp which
will house company 4255. Lt R.
M. Hayes of Portland and Lt. E. A.
Davis of Brooklyn, N. Y., are in
charge. They arrived at 6:30 Tues
day morning with twelve New York
boys who have been in CCC work
for six months, and started the
Lumber for the buildings will be
on the ground within two weeks,
and orders are that the buildings
must be completed by one month
from the time the lumber arrives
on the ground.
Sixteen local experienced men ar
rived yesterday. These are older
men who have knowledge of the
.work contemplated, and who will
direct crews in carrying on the soil
The personnel of the camp will
include mostly New York boys.
About 200 of these boys will make
their home here.
All experienced carpenters em
ployed in constructing the camp
will be hired locally. Orders are
that as many carpenters be hired
as may be used efficiently in push
ing the work. It was expected the
camp would be completed by Aug
ust 1. L. D. Bailey has been re
tained as chief carpenter.
Construction of the camp on city
ground adjacent to the Rodeo
grounds will not interfere with
staging the Rodeo, as forty feet
clearance will be left between the
camp and the arena.
The local camp is being estab
lished under the usual custom of
CCC work, with the army in charge
of camp construction and opera
tion and with the soil conservation
service of the department of agri
culture directing the field work.
Orville Cutsforth, in town the
first of the week, expected to start
his wheat harvest yesterday. He
expects a fair yield from some of
his fields, with prospects better on
the higher ground near Swaggart
buttes. Grain generally in the Lex
ington section is expected to yield
from nothing to as high as 12 and
14 bushels to the acre.
Harold Dobyns, with the U. S.
Biological survey, assisted County
Agent Belanger in distributing rab
bit poison in the north end of the
county Tuesday. Rabbits are so
thick this season that they may be
calculated at the rate of so many
to the square foot, Mr. Belanger
said. Mrs. Dobyns accompanied her
husband to Heppner.
A group of Umatilla men were in
the city yesterday distributing ad
vertising for the open-river Fourth
of July celebration to be held there.
INTERIOR ROAD IN GOOD
ANYONE going from here to
central Oregon, to lower
Willamette valley points, to
southern Oregon, or to California,
will save time and find an enjoy
able trip over the recently com
pleted Heppner-Spray road and
The Heppner-Spray road prop
er Is now graveled Its entire
length and is In good condition.
RELIEF BODY CALLS
FOR WHEAT BIDS
618,000 Bushels to be Taken From
State Surplus to Make Flour
for Relief Distribution.
This week the State Relief com
mittee called for bids on 618,000
bushels of surplus wheat, all of
which must be grown in Oregon,
and which when made into flour,
will be distributed in sacks to re
lief families of the state. This ac
tion by the State Relief adminis
tration followed immediately on ad
vices from Governor Martin that
thousands of dollars will come to
the Oregon wheat producer.
Purchases will be made on ware
house or elevator tickets from pro
ducers or associations of producers,
as the case may be.
It is understood that there are
some 13,000,000 or 14,000,000 bushels
of surplus wheat in storage in Ore
gon at this time, and though this
call for bids on 618,000 bushels is
only a drop in the bucket of the
surplus article, lt will go a long
way toward caring for surplus now
in the hands of some producers or
Oregon's wheat crop is spotty,
some counties reporting good, oth
ers fair and still others no crop
worth selling, let alone harvesting.
In the northwest generally the crop
indications point to a fully normal
size. Recent rains helped wheat in
all districts, except where it came
too late. Had the river counties
and light lands had moisture sev
eral weeks earlier, there would
probably have been a bumper crop
in both winter and spring wheat.
The Federal Relief government is
asking for figures on surplus wheat
only in storage at this time.
The purchasing department of
the State Relief administration is
located on the fifth floor of the
Spalding building, Portland, where
bids may be submitted for all
wheat at once.
Joe Beetles Hit Hard
As Heppner Wins, 23-11
"What a game!" That's the echo
and re-echo from all who attended
the Heppner-Rhea Creek fracas
Sunday in the Morrow county lea
gue series. The game was played
at Rhea Creek before a large crowd
and Heppner won it, 23-11, while
treating Joe Beetles, southpaw In
dian chucker from Pendleton, to
one of the hottest receptions he
had seen in many a day.
Joe has pitched nice ball this sea
son for the Pendleton, Umatilla
league, regulars, and Rhea Creek
thought they had something when
they imported him. The Heppner
boys didn't let it bother them much,
however, as they proceeded to find
Joe for five home runs, three trip
les and plenty more hits. Lowell
Turner and Al Massey each hit two
homers and Clinton Rohrer knock
ed out the fifth. Turner started the
chucking for Heppner, being spell
ed by Leonard Gilman. Other lo
cal players were Jimmy Farley,
Don Turner, Bill McRoberts, Merle
Cummings, Raymond and Donald
Drake and Dale Bleakman. Score
sheet of the game was not avail
able and the Rhea Creek line-up
was not learned.
The marriage of Miss Nina Cox,
daughter of Mr. and Mrs. Percy
Cox, to Mr. Reese Burkenblne, son
of Mr. and Mrs. A. E. Burkenblne,
has been announced as an event of
Some thirty miles of the route is
through the heart of the Blue
mountains, where motoring thru
the cool mountain breeze on good
roads is especially enjoyable.
The John Day highway is met
three miles south of Spray, and
those going into central Oregon
are advised to take the Service
creek cut-off. It 'Is reached 131
miles north of Spray. It Is now
STATE r OREGON f
Project Calls for Dams
Where Heavy Run-off s
May be Retarded.
APPLY FIRST IN LINE
Assurance Given of Proper Hand
ling; Would Prevent Recurrence
of Disaster Such as in 1903.
Application for a flood control
project in Morrow county was of
ficially made with the army engin
eer in charge of this district at
Portland on Monday by F. S. Par
ker and George N. Peck, county
commissioners; Harry Tamblyn,
county engineer, and Rhea Luper,
consulting engineer. While no as
surance could be given as to the
success of the project, the delega
tion learned that their's was the
first application received since the
recent establishment of a new dis
trict which includes this county.
Assurance was given that the ap
plication would be pushed through
the regular course as fast as possi
ble. The project calls for the building
of dams at points on water-courses
where heavy run-offs are known to
occur, it being declared by Engin
eer Luper that such dams are en
tirely feasible as a means of pre
venting the recurrence of such a
flood as visited Heppner on June
14, 1903, which took a toll of more
than 200 lives and a half million
dollars in property damage.
If the project is approved the on
ly expense of construction to the
county will be obtaining rights-of-way.
The federal government will
make necessary surveys, construct
the dama and maintain them for
two years, after which time the
county, or local flood control dis
trict, must assume the maintenance-.
While the dams have been applied
for as a strictly flood-control meas
ure, the water conserved by them
would be available for irrigation,
and such conservation is contem
plated as being of much benefit to
farm lands located below the dams.
SOIL EXPERT TO SPEAK.
C. E. Hill, assistant regional di
rector of the Soil Conservation ser
vice at Athena, will be the main
speaker at the Morrow County Po
mona grange at Cecil on July 6, and
will talk on the subject of soil ero
sion. Mr. Hill has been in charge
of the erosion control district at
Athena and previously has spent
some twelve years at the experi
ment station at Waterville, Wash.
During the last few years both
wind and water erosion have be
come increasingly prominent as ag
riculture problems demanding ser
ious consideration, states Joseph
Belanger, county agent, in an
nouncing the appearance of the
speaker in the county. Mr. Hill's
background and present work has
made him a recognized authority
on erosion matters. This subject
is especially timely here in Morrow
county in view of the CCC camp
which is being established at Hepp
ner for the primary purpose of
working on erosion control meas
In good condition and good time
may be made. It connects with
the Ochoco highway at Mitchell.
The Ochoco highway is In good
condition. Fifty-two files from
Mitchell, Prlneville is reached,
and it is 16 miles from there to
Redmond and junctions with The
Dalles-California and McKenzle
By this route it is just 178 miles
By MRS. MARGARET BLAKE
Mrs. Millie Newton of South
Bend, Wash., and Mrs. Jalmar Kos
ki and daughter Thelma Jean of
Olympia are visiting relatives here.
Norman Swanson has accepted
a position with the North Pacific
Grain Growers Inc., of Spokane.
Mr. and Mrs. Garland Swanson
drove him to Grangeville, Idaho,
Sunday where he was to report for
auditing work on Monday.
Miss Linea Troedson is home
from her year's work in the Port
Dwight Misner of Thornton, Wn., j
was in town several days last week.
He was disposing of his crop which
it would not pay to cut, for sheep
pasture and arranging for the re
moval of the balance of his farm:
machinery to his new location.
Vance McMurray of Palouse is
spending the summer at the ranch
of his uncle, Laxton McMurray.
Mrs. George Tucker, Mrs. Frank
Lundell and Mrs. Carl Allyn enter
tainel for Mr. and Mrs. Kenneth
Blake at the home of Mr. and Mrs.
Allyn one night last week. A din
ner at seven was followed by five
tables of bridge. Prizes were won
by Mrs. Frank Lundell and Harlan
McCurdy. A gift was presented
to Mr. and Mrs. Blake who are leav
ing soon to make their home in
Mrs. George Tucker and daugh
ter Maxine spent the week end at
the Corley wood camp in the moun
tains. Mrs. Eunice Warfield and son
Buddy and George Cochran of Her
miston visited their mother, Mrs.
Alice Cochran last week.
Mrs. Leora Withers of The Dalles
spent the week end at the home of
Mr. and Mrs. James Lindsay.
R. B. Rice of Lexington and A. E.
Johnson spent Sunday and Monday
in Portland on business for the
Morrow County Grain Growers.
Junior Mason spent Beveral days
of last week in Athena.
Mrs. E. G. Sperry returned from
Portland on Saturday morning.
Her daughter Eileen remained for
a visit with her aunt, Miss Agnes
Mr. and Mrs. Earle B. M. Wright
and, sons of Baker are visiting at
the home of Mr. and Mrs. T. M.
Mrs. Mary Nyland, Miss Marie
Lacabere and Miss Nellie Carlson
of King City, Cal., who have been
at the Smouse ranch for the past
two weeks returned to their home
Miss Barbara Parker entertained
ten of her small friends on her
The members of the Masonic
lodge and Eastern Star and their
families enjoyed their annual
strawberry feed at the Masonic hall
on Tuesday evening. Fifty peo
Miss Olga Johnson of Portland
arrived on Friday to spend her va
cation at the ranch of her brother,
A. E. Johnson.
S. J. Devine of Lexington was in
town on Monday.
Mrs. Frank Finn who has been
visiting her daughter, Mrs, Peter
Timm, departed for La Grande on
Wednesday to visit her sisters, Mrs.
Helen Crete Bork and Mrs. Will
Miss Bethal Blake was given a
surprise party at the home of Mr.
and Mrs. Lee Howell on Friday
night Games were played and re
freshments served. Those present
were Misses Eleanor Everson, Hel
en Lindsay, Helen Lundell, Dorothy
Brady, Mildred Lundell, Miriam
Hale, Sibyl and Dorothy Howell
and Bethal Blake.
Mrs. Peter Timm gave a dinner
in honor of her sister, Miss Opal
Finn, last Sunday. Those present
were Mr. and Mrs. Vernice Craw
ford, Misses Ruth, Helen and Mar
garet Crawford, Margaret Ely, Har
riet Heliker, Clara and Ellen Nel
son, Mr. and Mrs. E. J. Bristow,
Milton Morgan, Berl Akers, Paul
Smouse, Theodore Thompson and
Donald Heliker. Miss Finn who
has been at the home of her sister
the past six months departed for
her home at Long Beach, Cal., on
Wednesday. She took a plane from
Pendleton to Salt Lake where she
will visit relatives for a few days,
continuing from there to San Fran
Cisco by plane, then by boat to Los
Mr. and Mrs. Dixon Smith and
children motored to The Dalles and
Dufur on Sunday.
The Rev. and Mrs. J. L. Jones
and Miss Gwendolen Jones depart
ed for their home at Gladstone on
Saturday. They were accompanied
by Miss Helen Blake who will visit
at their home and by Mrs. E. J.
Keller who will visit sisters in Ta
coma and Port Angeles, Wash.
Richard Peterson of Kimberley
visited his mother, Mrs. Ida Peter
son on Sunday.
The Gooseberry Lutheran church
was filled to capacity on Tuesday
night to enjoy the program of mu
sical numbers and speeches pre
sented toy six young men from
Bethany college of Lindsborg, Kan.
Paul Dickey, a student from
theological seminary in Chicago,
arrived on Saturday to fill the pul
pit of the Congregation church dur
ing the summer. Mr. Dickey will
preach each Sunday morning in
whichever church the Union Sun
day school is held and In the Con
gregational church on Sunday eve
nings. His wife and baby who are
visiting in Klamath Falls, will ar
Mrs. Maude Farris and daughter
Earline are visiting relatives in
Portland and Medford.
Mr. and Mrs. Harry Duvall of
the north-Lexington district were
shopping In the city this morning.
Series of Six Dances for
Voting Begins July 13,
Ends August 17.
FOUR GIRLS IN RACE
Progress of Plans Reported for
Rodeo, 4-H Club Fair; Clown
Is Added Attraction.
The throne of 1935 Rodeodom is
assured a charming occupant with
announcement this week of candi
dates who will represent four
granges of the county in a popular
voting contest at a series of six
dances beginning Saturday, July
13, and ending Saturday, August
17. The candidates are:
Miss Ilene Kenny, Lexington
Miss Camille Stanley, Lena
Miss Maxine McCurdy, Rhea
Miss Ilene Farley, Willows
As in previous years, a vote tick
et will be Issued with each admis
sion at each of the queen dances,
the girl receiving the highest num
ber of votes to be queen and the
others to be her attendants during
the Rodeo, August 22-23-24. The
schedule of dances was drawn last
evening at a meeting of representa
tives of the granges. The "kick-off"
and "wind up dances will be held
at Heppner under Rodeo auspices,
with one dance each to be spon
sored by the granges. The sched
July 13, Heppner: July 20, Wil
lows; July 27. Rhea Creek; August
3, Lena; August 10, Lexington; Aug
ust 17, Heppner.
To encourage keeping the voting
on a strictly popularity basis, rep
resentatives of the granges last
evening made a gentlemen's agree
ment that the granges would do no
vote buying for their candidates.
The admission price agreed upon
was 75 cents a couple, which will
hold at each of the dances. The
grange dance managers who had a
.part in making the arrangements
are Elmer Lundell, Willows; Oral
Scott, Lexington; Joe Brosnan, Le
na; Floyd Worden and Fred Akers,
Further details for the coming
show were discussed at a general
Rodeo committee meeting Friday
evening, when the list of events
was completed and turned over to
the printer. These will be available
for distribution this week end. A
few minor changes only were made
in the events of last year, with ad
dition of musical rope race and
clown. It is expected to have a
good clown on the job to help en
liven the show.
Joe Belanger, county agent, an
nounced arrangements well in hand
for staging the 4-H club fair and
wool and grain show in connection
with the Rodeo. Besides the model
kitchen In the dance pavilion, all
of the former exhibit pavilion -will
be used, and surrounding grounds
will be cleared for livestock and
The Browning Amusement com
pany of Salem has already been
contracted to bring rides and car
nival. Their mid-way will be lo
cated on city property adjacent to
the Standard Oil service station.
Concessions at the fair grounds
have been turned over to 4-H club
members. Hot dog stands on Main
street were left open to anyone on
payment of $25 each. Earl W. Gor
don and E. R, Shaeffer are in
charge of carnival and concessions.
New Record Low Rate
Announced by Land Bank
By using the cooperative financ
ing facilities which are available
through the Federal Land bank,
local farmers may now obtain first
mortgage loans at the lowest rate
in agricultural history 4 percent
Passing along full benefits from
the present cheaper money market,
the Land bank put this record low
interest rate into effect on Monday
of this week (June 24), according
to word received from President E.
This is the third successive re
duction by this cooperative mort
gage institution in three months.
On April 1 a reduction was made
from 5 percent to 44, then to 4
on April 10 and now to 4 percent on
new loans closed through and in
dorsed by local borrower-owned as
sociations which hold an investment
in the bank's capital stock.
These reductions were automat
ically brought about by the mar
keting of new bond issues to the
Investing public. The rate of in
terest charged on new loans made
through and guaranteed by local
farm loan associations may not ex
ceed by more than 1 per cent the
rate of interest borne by bonds last
issued 'by the bank. The recent of
fering and oversubscription of 3
percent bonds thereby established
the new base lending rate of 4 per
cent, allowing 1 percent for operat
ing expenses. Loans made by the
bank without local association in
dorsement bear one-half of one per
cent higher rate, or 44 percent
through the new reduction.