The Glenwood post., 1913-12-27
soaR o1aeRyAxIoms
o. Fam CRnnGfs

1t has been stated that q eevernnent
loan plan cannot take care Of mortgage
loans on farms up to IS Per cent Of
the value for tenants Who wish to buy
Do We need to do it in order to &C.
os0plish great good. If - SOME other
eountries have found it safe.
The government can safely e.l prof
itsbly lead up to 60 per oses Of the
value Of security O. fiut Dost0aee At
four and ore half per ees4- II it Ie.ds
to all tenants Who can PssAaee 20 per
cent Of the purchase price II fasE,
ve viii d mach to aseseaas tenaAey.
Whether the te.ant has this 20 per
cent or not, depends largely % price
Of the farm. Every farn teaaat knows
that . small farm we'll titled 10 better
to him than q big farm we'll rented for
the owner.
"A low rate Of interest and long term
mortgage will encourage them in buy
ing. Those who have less than the 20
per cent will be encouraged by the
same reason to got into the 40 per cent
class.
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 tho
government alone can do it and must
do it on the theory Of public policy.
Private capital will not do it. Then
why complain of government loans or
this ground! II We lend up to 80 per
cent now, we will likely never reach
the necessity for lending mp 70 rs per
cent.
One writer is afraid that cheaper m
terest rates and longer term mortgages
will raise the price of land % that the
buyer Of farla will not be benefited.
Will this is work both ways! If so,
why not ra,>c the ] re: ent interest rlt,
and make the farm cheaper! Will that
help decrease tenantry,
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
g. - a.,
the price.
But the number Of tenants We now
have is not more important than the
number We may have IL we do poth.
ing.
A lower rate Of Interest and better
tern win keep many Of tAe present
aosteaeed farn o~ner fron them
selves becoming tenants. " r-
For the farmer just emerging from .
long battle with . devil mortgage, with
. rundown wrecked farm. these advsn.
taees will afford . chance for him to
safely borrow and improve.
Lending money at CLOVER cost AMI
better terms' is the core Of the farm
credit question. Any plan omittins
these essentials is useless. II lower
interest rate will bring disaster tn,
subject should be dismissed.
Some want a lower interest rate to
come with "natural conditions Nat
ural conditions are: private control Of
money for the profit All the states
have tried to lower the rate bv law
Natural conditions circumvented the
law. Let the government be the lend
er on the farm mortgage at maximum
rate of four and one-half per cent.
That is the only sure way to lower the
interest rate. Not a cent of the tax
payers money need be used. The gov
ernment can borrow and lend. 1t can
be trustee for the lender and borrow
er. take no risk and make profit from
the whole people.
There is no need for spying inspce-
tion nor rigid restriction of what IS
done with borrowed money. The farm.
er is not a gambler. He will not bet
the money on . horse race. Not one in
ten thousand farmers will mortgage
his farm for other than farming bust
ness.
If inspection is necessary, the gov
eminent has the best possible means 10
carry it out At least cost and in . way
that will neither offend nor obstruet
the initiative Of any American farmer.
THIS GOVERNMENT Is A Co
OPERATION. It's here now. It 10
osetef able 70 carry out . general.
eoapreAensive plan Of first Aostg,gc
Iseas than any cooperation which can
be devised. II can do II at leo nan