The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1913-11-20
SYSTEM
CREATING INTEREST
Congressman Bathrick's Bill Causing
Government Loans to Farmers
Meeting With Approval
MADE DEEP STUDY OF SUBJECT
New Plan Will In No Way Decrease
Value Of Land Lend Up
To go Per Cent Of Value
BY Congressman clyde H. Tavenner

By Congressman Clyde H. Tayenner
| Washington November "Lend
ing money at lower cost and better
terms Is the core of the farm credi,
question" said Congressman 3. R
Bathrick, of Ohio, whose rura
credit bill is attracting great atten.
ton from all parts of the country.
Mr.. Bathrick has been making 3
deep study of the rural credits ques.
ton. His office at the Capitol looks
like a section of the congressional
Library, so crowded is it with gov
eminent reports on farm credits in
many countries of the earth. During
the present quasirecess OF the House,
the. Ohio congressman is being kept
busy jumping from one farmers con-
vention to another explaining the
terms Of his bill. But I caught him
the other day and he told me some
thing about his work.
Mr.. Bathrick is strongly of the
opinion that government aid is the
surest way of guaranteeing a farm
credit system for this country. There
are two general systems for giving
cheap money to farmers-one is the
Bathrick plan and the other is the
plan for having the farmers band to-
gether in a cooperative society and
borrow the money for themselves.
Both systems were studied by the
American Commission in Europe.
. The cooperative plan has many
adherents. Mr.. Bathrick fears that
such a system would run the danger
of falling into the hands of the Wall
street Financiers. He believes the
government itself should accept the
farm mortgages, and on this security
issue bonds, the proceeds from the
sale of which could be furnished to
the mortgage givers at a maximum
interest rate of four and a half per
cent. The government would derive
profits from such transactions, and
the Bathrick bill would apply, these
profits OF the building of good
country roads. s.,
Let the government be the lend
er on the farm mortgage said
Bathrick. s'That is the only sure way
to lower the interest rate. Not a
cent of tax papers 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 for the whole
people.
There is no need for spying in
spection nor rigid restriction of
what is done with borrowed money.
The farmer is not a gambler. He will
not bet the money on horse race.
Not one in 10000 farmers will mort
gage his farm for other than farm
ing business.
The laborer in the city will not
complain. The money lender will
complain in the name of labor, but
actually for himself. Labor knows
that government loans to farmers
will help farm production and take
the farm boys competition out OF
the city"
Mr.. Bathrick believes that cheap
money for farmers will do much to
reduce the number of farm tenants
and increase the number of farm
owners. He said.
"The government can safely and
profitably lend up to so per cent 81
the value Of security on first mort.
cages. If it lends to all tenants who
can produce 40 per cent OF the pur.
chase price Of farm, it will do much
to decrease tenancy. "A low rate 81
interest and long term mortgages
will encourage tenants in buying
Those who have less than the 4
per cent viii be encouraged to- ge
into the 40 per cent class.
Only the more thrifty Of the farm
tenants will buy farms. Take Thu
class away from the tenants seekinl
to rent farms, and the landlords ma,
want to sell farms after trial Of tn,
] thriftless tenants. This will put ten