Imperial Valley press., 1913-09-16
Tavenner'S Views
On Developments
(By Congressman Clyde H. Tavernerl


| WASHINGTON, Sept. l6.-Repre-
sentative E. R. Bathrick, of Ohio, has
novel plan for combining the move
ment for better farm credits with the
movement for good roads to the great
benefit of everybody in the country
without penny's expense to anyone.
In other words, if the government I'M
dertakes any great system of supply
ing capital to farmers at cheap rates
there is sure to be large profit ac
cruing to the government from this
source, even though the government
charges a very low rate of interest.
This profit Bathrick proposes to APP
ply to the construction of good roads.
Twenty thousand miles of model
roads in five years without cost to
the taxpayers-this has become Bath
rick's slogan.
| The Ohio representative has taken
keen interest in farmers credit, and
was studying the European forms OF
farm finance months before the re-
cent government commission was
thought of Mr. Bathrick introduced
farm credit bill in congress nearly
year ago. He has twice reintro-
duced this bill with notifications
based on further study Of the subject,
the last reintroductiOn containing his
plan for good road construction.
Mr.. Bathrick believes the govern
ment itself is the proper agency %
conduct this great financial institution
for farmers. His proposition is to
have the government issue bonds
based on farm land mortgages which
will be offered by farmers benetiiting
credit the government can borrow
millions of dollars at 3 12 per cent,
money that can be reloaned to farm
ers at an advance of one per cent.
Farmers now pay on the average of
8 per cent on money borrowed on the
security of mortgages.
THE benefit of my plan to the peo-
pie would be two-fold," said Mr.. Bath
rick, "a general back to-the-farm
movement and improved rural high
ways extending to every prominent
city in the country. The plan involves
the institution of a federal farm
credit scheme, embracing direct loans
on farm lands and indirect loans
through banking companies to assist
in providing for short time crop loans.
at is not an extreme assumption
that after a reasonable time of oper-
alton the government would have
loans outstanding to the amount of
81, 100000 900 on the mortgage of the
farm home owners. This would De
$1,000 100000 short of the total land
mortgage farm debt At the end Jf
the first six months period, after the
interest had been paid upon its bonds.
the government would have in its
| funding account for re-investment
S42. 100000 This sum is re-loaneI
Thus the government would be draw
ing compound interest upon its farm
investments. As we would make each
re-lOan sum for all of the six months,
the net profit to the government af-
ter deducting expenses is S136,000,000
which will build 22,666 miles of public
roads at a cost of $4,000 per mile.
Gas soon as the re-investment Of
the governments profit is well mad,
bonds should be issued against it .
secure the cash for the road building,
which would begin the second year
The money borrowed by the farmers
would be repaid by amortization, or
installment, principle, so that in aboIt
% years of small payments the bor-
rowers could cancel their debts