Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-13
Measure Provides That Clubs of
Is Can Make Quick Longtime
Notes With the Government at
Reasonable Rate of Interest.
Tremendous Benefit to Southern
Cotton Growers Seen in Law of
Progressive Republican - Will
Insure Financing of the Crop.
BY HUGH S. MILLER.


WASHINGTON, July ia meas
ure which, if passed, will remove one
OF the most serious obstacles with
which the Southern cotton growers
nave to contend, the lack of money at
the proper time with which to proper
ly care for and market their crops
has been introduced in the House by
Representative Willis ], Huling, Of
pennsylvania, a Progressive Republi-
can.
In the last yearbook of the Depart
ment of Agriculture, considerable
space was given to pointing out the
advantage Of organization Of the cot
ton growers in communities, both to
raise money at crop time and to es-
tablish comparatively improved IA
cilities for handling their product.
The bill introduced by Mr.. Hulings
devises a plan whereby an association
of not less than rs farmers may Dor
row money from the Government at
low rates of interest on mortgages
on their farms, repaying the loan in
payments arranged to give the farm
er ample time.
Will Encourage Organization.
The effect of this plan, it is claimed
would be to encourage the farmers in
a community TO organize in just such
a way as was advised by the De-
partment of Agriculture in its articles
on improved methods of handling and
marketing cotton.
Under the present system, farmers
are charged ruinous rates for money"
said Mr.. Rulings. often the farmer
hinds 1t impossible to obtain loans be-
cause banks are not permitted to lend
on real estate security. and no bank
likes to lend on more than four
months time.
"Of course If the farmers credit is
good and he can furnish commercial
paper, he can borrow from a bank at
customary rates; but this measure is
designed for the benefit of the men
whose only security is the land they
are working and who need money to
cover the time between planting and
selling their crops.
Under the plan I suggest sub
scribers will organize an association
somewhat as national banks are or
ganized, paying 10 per cent cash, and
in addition giving their notes paya-
BILE to trustees for the use of the
United States for the amount of their
subscription and these notes are Sc
cured by mortgages on improved farm
lands of an assessed valuation of dou-
BILE the amount of the mortgage.
Twenty Years Covered.
1.-THE association will then make it's
note to the Secretary of the Treas
ury for the amount of the capital
stock, and payable in installments of
per cent annually for three years;
Z per cent for three years; for the
next three; 9 for the next three, and
10 per cent annually for the last five
years, covering twenty years in all.
These installments when paid will
hn
crued per cent interest, and of
course will cancel the mortgage also.
"As a collateral security for the
payment of any or all of these INSTALL
ments, the subscribers personal notes
and mortgages are deposited with the
Secretary of the Treasury together
with the official bonds of the trustees
for the faithful discharge of their
duties, and approved assurances that
the mortgages are a valid security.
when these matters are in proper
shape, the Secretary places the per
sonal notes and mortgages in the pos
session of the trustees for the pur-
poses of collection as the same fall
due. and from these collections to
pay maturing installments Of the as
ISOLATION note and to see that taxes
are paid, and the liens Of the mort
cages are not impaired.
THE ASSOCIATION Is then enJtleu 10
receive money of the United States
to the amount of its capital stock.
which is then distributed among the
subscribers of the shares in the pro-
portion in which they have given their
notes secured by the mortgages.
''To provide funds the Secretary of
the Treasury is authorized to sell 3
per cent twenty-year bonds when
necessary.
"The rate of interest the association
charges the subscriber is immaterial
so long as it charges enough to repay
the government loan at 3 per cent
and the administration expenses of
making the loan, because if the sub
scriber is charged more than the cost
It all comes back to him in the wind
up"