Arizona republican., 1913-07-19
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could obtain for themselves. Although it would perhaps not be just to direct ly contrast interest rates in Europe with interest rates in the United States, some idea of the saving effect ed to landowners by the French sys- tenn might be seen in the difference between the interest rates today paid by French farmers, 4.3 per cent, with that paid by American farmers. from 6 to per cent.
 Beyond this, the Credit Foncier ex- acts no commissions on loans. The money loaned to the farmers Is not the company's but the bond holders and as long as the bond runs the farmer is welcome to his money. Tn contrast to this the Am merican farmer on his mortgage can only get his money for from 3 to years. At the end of that time he must pay from 2 to per cent for Q renewal and he is liable to have his interest rate raised or to have his loan foreclosed.
 Again the American farmer is ob- liged to repay the entire principal of his loan at the expiration of the term The French farmer pays a fixed sum each year, part of which payment goes for interest on the loan and the
 
 principal. As the payment each year is the same and as the principal of the loan is reduced each year, the in- terest payments are constantly de- creasing also and the farmer in this way gradually repays the loan with out ever having to make Q lump pay ment. For instance, a French farmer money for 25 years at 43, pays each year 6.5 per cent. At the end of the twenty five years he would be out of debt and his payment for the twenty fifth year would be the same as that for the first year. With l the American farmer, the interest of 1 s per cent. would have to be paid each | year and at the end of the loan he 1 would have to pay the entire 100 per | cent. in a lump sum. Now statistics 1 show that the average American | farm mortgage runs for 12 years. | Suppose then that the American farmer had his loan for 12 years | at per cent. His entire pay ments without commissions would amount to TIP per cent. The entire payments of the French farmer to 1925 per cent. In addition to this the American farmer would have to pay from to per cent in renewal charges; would be liable to foreclosure md would have to scrape and stint himself to get together the 100 per cent to meet the principal.
 That is Q comparison between the French mortgage system and the American, made purposely plain and without embroidery. The advantages |. brought to the French farmers by this E financial machine which constantly |, pumps a stream of money from the ;reat urban money markets into the arms. was readily apparent to the members of the American Commission m Agricultural Cooperation. In their 'wn country the mortgage was a can , er on the farm; a debt contracted , 'nly to tide over bad times; one I O be avoided as long as possible and aid off as quickly as possible when was necessary to resort to it. But n France the Commission found the f mortgage looked upon as a means to ssist farmers to fuller development ( f their farms. Wherever a farmer f aw a way to spend a sum of money ( n bettering his land, fertilizing it. [ raining it. irrigating it, adding more t cres to it perhaps, he would borrow t n his mortgage knowing that the pay t
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