Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-28
GERMANS FARM
LOAN PRAISED
AS MODEL
Government Backs Mortgage Sys-
TEN, Permitting Payment on
Easy lnstaIIments.
BY HARRIS WElNSTOcK.
California Vice Chairman of Ameri
can Commission.)

can Commission.)
Special Gable TO The Atlanta Georgian.
HANOVER, June 28-The tour OF
thu American Commission through
Germany is demonstrating that in the
matter of seeking the economic vel
fare and lettering the condition OF the
farmer Germany is fully 25 years in
advance of US.
In Germany, largely through Gov
eminent aid, the smallest farmer
can borrow money more cheaply
than the merchant generally as
cheaply as any great hnancier could
borrow it despite the fact that the
farmer needs dollars where the finan-
cier would need millions.
The Government, in some instances,
initiates banks. in other cases LITERALLY
aids banks that have the end in view
of enabling the farmer to get credit
for land purchase or Improvement a.
the worlds lowest rate of interest or
the longest possible time for repay
ment.
EUeCtS OF OFoQt OJStcN,
This system, combined with CO.
operative distribution, has been the
foundation of the unprecedented
growth and development of German
agriculture in the last two decades.
II is authoritatively stated that the
soil of Germany is made to yield on
an average about twice as much per
acre az the American soil, despite
the fact that the American soil in
its virgin state is as good if not
better
This is possible in Germany be-
cause the farmer gets whatever finan-
cial aid his circumstances warrant
and because CT the interest the Gov
eminent takes in giving him a scien
tifc education in agricultural mat
ters.
Given the same high cost of land,
the same high cost of cultivation,
the same small holdings under which
the German farmer labors, an
American farmer, paying the price he
does for the use of money in meet
ing the difficulties he faces when
farming on a small scale, would lit
orally starve when the small German
farmer is highly prosperous.
Farm Problems in United States.
The last census shows farm ten
Of all proportion to ownership. This
serious matter should not be treated
lightly by American statesmen. Men
will fight for their land where they
won't for their landlords The most
valuable asset a country can have is
its small farmer.
Minimize this asset and you weaken
the very foundation upon which a
nation rests. Wisdom dictates that
every effort should be made to en-
courage the American farm tenant
to become a farm proprietor and sue
coed as such.
The experience of Germany and
other European countries thus far in
vestigated by the commission dem
onstrates that the first step along this
line is to enable the small farmer
to get all the financial credit wheretO
he may be entitled at the lowest
market rates with the longest time
for repayment on the installment
plan. The German land mortgage
system does all this.
1t is this system modified to meet
American conditions that is strongly
appealing to the commission as the
great message to be brought home
as a result of it's investigation.
Europe's Mortgage System.
Under the European amortization
plan the small farmer gets his
money at from to per cent in
terest, payable at his option at the
rate of one-half of l per cent a year
on the principal. He thus has over
so years wherein to wipe out his
mortgage or as much less time as
suits his convenience.
His gross annual payment for in
terest and principal is considerably
less than the American farmer pays
for interest alone.
II is my opinion and hope that the
American commission viii be able to
present some plan to the American
people whereby the German land
mortgage system can be applied to
American conditions. 1t will then be-
come the opportunity, as it should be
the duty, of American statesmen to
devise legislation, whever legisla-
ton is essential, to carry out this
plan.
This will be taking the first step
toward advancing the highest eco
nomic welfare of the small American
farmer. the very backbone of the