Semi-weekly herald., 1913-12-29
LENDING monev at Alower cost and

Lending money at ''lower cost and
better terms" is>the core of the farm
credit question. Any plan omitting
these essentials is useless. If a low
er interest rate will bring disaster,
the subject should be dismissed.
Some want a lower interet rate to
come with natural conditions" Nat
lural conditions are: private control 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 lend
er on the farm mortgage at MAXI
mum rate of four and one-half per
cent. That is the only sure way to
lower the interest rate. Not cent
of the tax payers money need be used.
The government can borrow and lend.
1t can be 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 farm
err is not gambler. He will not bet
the money on horse race. Not one
in ten Thousand farmers will mort
gage his farm for other than farm
ing business.
If inspection is necessary, the gov
ernment has the best possible means
to carry it out at least cost and in
way that will neither offend nor
obstruct the iniative of any American
farmer.
, This government is cooperation
. It's here now, it is better able to car
: ry out a general, comprehensive plar
e of first mortgage farm loans thar
any cooperation which can be devised
2 1t can do it at less management cost
: more quickly, and secure greater uni
e formity of beneficial results.
2 The laborer in the city will not com
: plain. The money lender will com
plain in the name of labor, but fo
himself. Labor knows that govern
J ment loans to farmers, will help farm
production see consumption ahead o
it with telescope, and take the farm
| boys competition out of the city.
:, At the last convention at Manches
ter, N. H., the National Grange pass
ed the following resolutions:
Resolved, that it is the opinion o
! the National Grange that any legis
= lation for the purpose of betterini
farm credit is a part of the grea
national policy of conservation o
food supply, and as such, it canno
properly be delegated to private capi
tai for general exploitation and pro
: fit.
Resolved, that any farm credit as
sociation which shall receive any priv
ileges by or under federal or state la,
!, should be composed of farmers an
i not by capitalists of high finance VIII
h have heretofore dominated agricultur
al credit and created conditions whic
now demand relief.
Resolved, that any farm credit pla
N which does not include a direct re
X duction of the prevailing rates" o
interest, as well as long term o
i small annual payments upon farr
+ mortgages, will not meet agricultur
Il al credit requirements.
IN Resolved, that the government O
the United States should borro,
> money at rate of interest not to eS
,e ceed three and one-half per cent an
lend the money at rate not to eN
id coed four and one-half per cent to tn
If farmers upon long time farm Ian
T. mortgages with such restrictions a
[. may be necessary to make the go,
m ernment perfectly secure and the pre-
,e fit to the government to be expende
n in read improvement or for some otf
er object that will benefit the whol
ar people.
eel The farmer and farm papers mu:
,t stand for some concrete proposition
ID or nothing of any use will be DONE
IL Government loans" is the only pla
in sight that will reduce intere.
~ rates. No amortization plan wi
m work out on high interest rates. tt
IN annual load will be too great to ca
w ry.
iOI A long term and low interest raj
is fundamental to any useful pla
IN dealing with farm mortgages.
,nI One or two political economist
ID from eastern colleges profess horrt
re of the proposition. So do the none
v lenders. Both of these classes 10,
10 the farmer.
v E. R. BATHRICK,
.nl Member of Congress