Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1913-12-24
NlLll nan faisunl, oftinlla z, M.
son kII0n
FARhl CREDITS
Bya|!|lC!ongl ssIllan lh0I Believes
Government Loans.

Government Loans.
(By Hon. e. r. Bathrick. NJ. (.
Il has been stated that Govern.
ment. j oan Plan cannot take care 81
Mortgage Loans on farms up to Is
per cent of the value for tenants who
wish toS buy. =5.
Do we need to- do 1t IN order to ac-
.complishs great good !? II so, some 9TH
er countries have found it safe.
The Government can safely and pro-
zfitably lend up to- go per cent OF the
value Of security on flrst mortgage at
four and one-half per cent. Il It lends
ito all tenants who can produce 40
per cent Of the purchase price of q
farm, we will do much to decrease
tenancy. .5s. rs
ss Whether the tenant has this 40 per
cent or not, depends largely on price
OF the farm. Every farm tenant knows
that e small farm well titled Is better
to him than q big farm well rented
for the owner. 5zs:.
q low rate Of interest and long
term mortgage will encourage them
in buying. Those who have less than
the 40 per cent will he encouraged by
the same reason to get into the 40
per cent class. Il. HIS. ::s.2
No private-capital farm credit plan
can lend more than so per cent on
mortgages and expect Bonds Issued
Against Them to Sell at Par. II more
liberal lending is necessary the Gov
eminent alone can do it and must do
il on the theory Of. Government pol
Icy. Private capital will not do 3 It.
Then why. complain Of Government
Loans on this ground II we lend up
to 60 per cent now, we will likely
never reach the necessity for lending
up to Is per cent. =z u.
! One writer is afraid that cheaper
interest rates and longer term mort.
cages will raise the price Of land so
that the buyer of farm will not be
benefited. Will this rule work both
ways? II so, why not raise the pres.
ent interest rate and make the farms
cheaper? Will that help decrease
tenantry? ...s5 $500 .= > z..
.* Only the more thrifty Of the farm
tenants will buy farms. Take these
away from the tenants who are seek
ing to rent farms from landlords and
the landlords may want to sell their
tenant farms after trial Of the thrift
less tenants. Anything which encour-
ages farm tenants to buy will put ten
ant farms on the market for sale and
this condition will undoubtedly
steady the price. 81 s .Ss. .sasz
But the number of tenants we now
have, is not more important than the
number we may have IL we do moth
ring. sss s... ss- .$.....;.$
a lower interest rate and better
terms will keep many Of the present
mortgaged farm owners from them
selves becoming tenants: Ia .z... :. s>
\: For the farmer, just emerging from
long battle with a devil mortgage,
with g rundown wrecked farm, these
advantages will afford chance for
him to safely borrow and improve.
Lending money at "lower cost and
better terms" is the core OF the farm
credit question. Any plan emitting
these essentials is useless. II q low
er interest rate will bring disaster, the
subject should be dismissed. 2 s.. s. 3s
y Some want a lower interest rate to
come with Natural Conditions .
National conditions are: private CON
troll Of money for the profit. All the
States have tried to lower the rate by
law. Natural conditions circumvented
the law. Let the Government be the
lender on the farm mortgage at a
maximum rate Of four and one-half
per cent. That is the only sure way
to lower the interest rate. Not q cent
Of the taxpayers money need be used.
The Government can borrow and lend.
It can be a trustee for the lender and
borrower. Take no risk and make
profit from the whole people.
There is no need for spying inspec.
ton nor rigid restriction Of what is
done with borrowed money. The far.
mer is not a gambler He will not bet
the money on q horse race. Not one
in ten thousand farmers will mort
gage his farm for other than farming
business. @ S. IS +.
II inspection is necessary, the Gov
eminent has the best possible means
to carry it out at least cost and in q
way that will neither offend nor. OBJ
struct the initiative of any American
farmer. :5ss-- a.=.5e
This Government IS q Cooperation.
It's here now: It is better able to car
~ out a general conprehe nsive plan
of first mortgage farm loans than any
Cooperation which can be devised.
It can do.it at less management cost,
more quickly, and secure greater unit
formity Of benef cial results.
The laborer in the city will not com
plain. The money lender will COM.
plain IN I the name .of labor, but for.
himself. Labor knows that Govern
:ment Loans TO farmers, will help farm
production see consump tion ahead OF
Eit with q telescope and take the farm