The Oroville weekly gazette. [volume] (Oroville, Wash.) 1905-19??, 1913-09-05

hove to solve. We have heard re
noated,v what has been-dcne IN o'hei
countries, but what the man on tne
land in this country wants to Know
&c what can be done in the uniteu
States to accomplish the same feSu''
as have been accomplished IN otne,
countries. There are three ways tha'
land mortgage associations IN thiS
country might be organized and opei'
ated TO accomplish the same results
&C tho Germans Landschaften so-
c;eties that is. to make loans and Issue
mortgage bonds in exchange for tne
mortgages accepted on farm lanu'
First to form a cooperative associa-
ton of land owners who desire "
borrow capital on their farms !o9'
as the German Landschaften socie'ies'
are organized. Although from q
theoretical standpoint this Is the ldeai
organization and for nearly a century
and a half has been in successiui
oneration in Germany, yet for Ameri-
can conditions unused as our farmers
are to cooperative organization, 10
hope to bring about the successrui
organization of land mortgage as
ISOLATION through co-operation11 De-
lieve is entirely visionary.
THE second method is to leave the
organization of such institution "
private initiative, as our building ana
loan associations in the cities nave
been developed or the land mortgage
banks of Germany are operated which
are associations doing business SIM
liar to the Landschaften societies, but
are stock companies instead OF CO.
operative companies. There are, sew
eral drawbacks to leaving the .organl'
cation of such institution to private
initiative. In the first place. there
is not enough of prospective profit
to induce private interests to, lander
take to develop anything Ikea gen
leral system. In some localities there
would be successful private orkaniza
ton Just as we now have. but there II
no reason to believe that such or
ganization would become anything lik'
general. In the second placeaan as
ISOLATION organized by private inter
ests will be operated in the Interests
of those who loan money rather thai
those who borrow, and farmers can
not expect to get any great: relic
through such organizations. There Il
still another drawback to privatel.
organized land mortgage associations
the success of such institutions as !!
} means of extending cred}t depends up
on the confidence he..investins pub
lie has in the bonds that they issue
1t is reasonable to expect that. in tn
beginning investors and borrower
: would hesitate to do :.tusiness wit
such institutions and any system tina
is left to develop by means Of sue
organizations would make little pro
gress.
"The third way that land mortgag
associations might be organized an
accomplish everything that has bee
accomplished by the German Land
schaften societies, and to my min
the only feasible plan for America
. f0"6rkanfzee anu 1perace "fahtf 7fisfN
3 gage associations. Such plan woul
5 involve the establishing Of a stat
land mortgage bank as state In
!. stitution for the purpose of furnishin
: an adequate system of credit for farl
: owners in the state through the sal
e of bonds secured by mortgages o
y farm real estate. The bank itsel
i would not have the funds with whic
s to make the loans. But in eEchang
e for accepted mortgages would issu
" bonds of equal amount il denomi
e nations of $25, $50, 500, 1850, $50
II and $1,000 and bearing inteest at
u 3h, 4 and Az per cent. TIL .denomi
1t nation of the bonds and tk-s.rate o
lie interest they bore to be opt dal will
III the borrower The borrow coult
" either take these bonds and vll then
himself or have them soldthrougl
al his local bank, or have the ste banl
m sell them for him. The farer Dor
C. rowing in this way would paon hi.
III loan the same rate of intereeas the
n bonds issued in exchange n his
es mortgage bear plus one-half>f CEN
10 to pay the operating .expensesf the
G. state bank and to build up. a serve
III fund. The German Landscitafl al.
OF low only one-quarter per zee fol-
~. this purpose, but We will put a,
III one-half per cent to be conserve
ST. In addition to this would be ded
'r- the per cent or fraction Of a. peent
NY that is to apply to the amortizat OF
aS the principle. For example, a 'faer
!, =. makes application fora loan Of CO.
be His application is granted and is
we given in exchange for his norge