Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-28
GERMANS FARM
LOAN PRAISED
AS MODEL
Government Backs Mortgage Sys-
TEN, Permitting Payment on
Easy Installments'
By HARRIS WEINsTock.
california Vice Chairman of Amert'
can Commission.)

can NOHfHiSStOUsi
Special Cable to The Atlanta Georgian.
HANOVER, June 2S.-The tour OF
tn, American Commission through
Germany is demonstrating that in the
matter of seeking the economic vel
fare and lettering the condition of the
farmer Germany is fully rs years in
advance OF US.
In Germany, largely through Gov
eminent aid, the smallest farmer
can borrow money more cheaply
than the merchant, generally as
cheaply as any great financier could
borrow it despite the fact that the
farmer needs dollars where the flnan-
cier would need millions.
The Government, in some instances,
initiates banks. in other cases literally
aids banks that have the end in view
of enabling the farmer to get credit
for land purchase or improvement a.
the worlds lowest rate of interest or
the longest possible time for repay
ment.
EnectS OF CrSott system
This system, combined with CO.
operative distribution, has been the
foundation OF the Unprecedented
growth and development of German
agriculture in the last two decades
1t is authoritatively stated that the
soil of Germany is made to yield on
an average about twice as much per
acre as the American soil, despite
the fact that the American soil in
its virgin state is as good If not
better.
This is possible in Germany be-
cause the farmer gets whatever flnan-
cial aid his circumstances warrant
and because Of the interest the Gov
eminent takes in giving him scien-
tif1c education in agricultural mat
ters
Given the same high cost of land
the same high cost of cultivation
the same small holdings under which
the German farmer labors, an
American farmer, paying the price he
does for the use of money in meet
ing the difficulties he faces when
farming on a small scale. would lit
orally Starve when the small German
farmer is highly prosperous.
Farm Problems in United States.
The last census shows farm ten
ancy in our country increasing out
of all proportion to ownership. This
serious matter should not be treated
lightly by American statesmen. Men
will fight for their land where they
won't for their landlords. The most
valuable asset country can have is
its small farmer.
Minimize this asset and you weaken
the very foundation upon which a
nation rests. Wisdom dictates thai
every effort should be made to en-
courage the American farm tenant
to become a farm proprietor and sue.
coed as such.
The experience of Germany and
| other European countries thus far in
vestigated by the commission dem
onstrates that the first step along this
line Is to enable the small farmer
| to get all the financial credit wheretC
he may be entitled at the Lowest
market rates with the longest time
| for repayment on the installmen
| plan. The German land mortgage
system does all this.
II is this system modified to NEE
American conditions that is strongly
| appealing to the commission as tbs
great message to be brought home
! as a result Of its investigation.
| Europe's Mortgage System.
Under the European amortization
plan the small farmer gets his
money at from 4 to per cent in.
terest, payable at mis- option at the
rate of one-half OF 1 per cent a veal
on the principal. He thus has oveI
| so years wherein to wipe out hi.
mortgage or as much less time a.
suits his convenience.
His gross annual payment for in.
terest and principal is considerably
less than the American farmer pays
for interest alone
II Is my opinion and hope that tbs
American commission will be able Il
present some plan to the American
people whereby the German lanC
mortgage system can be applied t
American conditions 1t will then be.
come the opportunity. as 1t should b.
the duty, of American statesmen t.
| devise legislation, whever legisla.
ton is essential, to carry out thi!
| plan.
This will be taking the first ste[
toward advancing the highest eco
nomic welfare of the small American
| farmer, the very backbone of the
| nation.