The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1913-10-21
COMMITTEE REPORTS ON NEEDS
OF AGRICULTURAL INDUSTRY
One Is Land Mortgage Credit That e
Interest -Standardize Farm !.
Better Organization.

The report Of the special commit
zee appointed by Governor Craig to
frame a report on North Carolina
conditions and needs for the consid-
Grafton Of the American Commission
of Agricultural Inquiry in making its
recommendations to Congress is:
20 His Execllency. Hon. Locke Craig,
Governor Of North Carolina:
We. the undersigned committee ap-
pointed by your excellency to report
on conditions affecting agricultural
credit, marketing and cooperation In
North Carolina, beg leave to submit
che following report .or transmission
20 the American commission on agri-
cultural finance, production, diStri-
button and rural life:
II is clear that there is something
radically wrong with the facilities
for borrowing money on farm lands
in North Carolina From general IN
curry in many parts Of the State the
fact ia revealed that few banks in
North Carolina lend on farm land
and that the average farmer desir-
ips to borrow money on his land is
compelled to deal with, the loan shark.
and is compelled to pay from to ~
per cent on money borrowed. GAS
general rule ne is subjected to many
kinds of extortion, usury ana exploit
tation, and naturally. the average
farmer Of North Carolina Is very
MUGS dissatisfied with the present
land loan shark business and avoids
borrowing money whenever possible.
AS a rule, the land loan shark preyss
upon the necessities of the distressed
farmer and. regardless of law against
usury, without conscience and with
out heart gets all for the money loan
ed that his victim will pay. Another
curious fact about this business In
North Carolina Is that the more re-
mote the farmer lives from the larger
money centers. the greater the usury
the higher the commission and re-
newal fees, and the more exactine
the oppression and the extortion.
Hardly any greater blessing coulc
befall the farmers OF NORTH Caroline
than the institution OF system o.
land mortgage credit that will brinf
money to the farmers and land own
ers at a low rate Of interest. and b!
the process Of amortization or annua
installments, extend to them the priv
ilege Of repaying this money over
long period Of years. Our farmer
are willing to pay what money l
worth in the markets Of the world
but they are not willing to be robbet
by land loan sharks and ."blood suck
ers." Rather than subject themseive
to oppression they prefer to ALLOW
about $4,000 900 acres of land re
main in state of waste that Is
menace to the health and happines
of the entire population Of our State
Collective Credit OF Cities Utilized
WY Not Collective Credit Of
Farmers?
Collective credit for public purpose
and at from to 5 per cent has al
ready been extended by investors t
mo- ne..it. - xxf RI II
lima and to many townships upo
satisfactory amortization basis, bu
collective credit has been denied tn
citizen in his individual capacity. Tn
result has been that the counties an
cities in North Carolina in their cor
porate capacities have made sue
marvellous progress as to attract TN
attention Of the rest of the country
yet the farmer in North Carolina
making little progress In developin
MS lands. The average Tar Hee
iarner Is only making bare lNlnt
lie enjoys none Of the profits derive
nom the business handling OF NJ
products.
II is Il fairly established fact tha
there is great deal Of money
North Carolina that would be invest
ed in land mortgage bonds bearln
b per cent interest payable to beare
and secured by aggregated mortgage
on farm lands, but we should max
some reforms i'm our present systei
OK taxation; second we must 1nstitu'
the necessary financial machinery f6
handling land mortgage bonds; an
thlrd, we must remove from tn
minds of the bankers their unJu
prejudice against lending money Q
real estate. The actual experiene
or few banks in different parts {
our State shows that this prejudice
uhJdat. and that loans on real estat
especially small loans on real estat
"hen handled with intelligence, al
1uSf lipniG nd n lnanS 4