The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1913-09-08
ADVOCATES FARM
CREDIT SCHEME
4sS.ss
Representative E. R. BathriA Intro.
duces Bill to Establish Better !.
Farming Credits.
$4,000 MILES ROAD IS SLOGAN
Believes Government is Proper Agent
to Conduct Financial Institution
For Farmers.
$4,000 MILES ROAD IS, SLOGAN
By Congressman Clyde H.:EETavvenner

By Congressman Clyde H. $;TaYenner
- Washington, Sept. S.-Representa,
tive e. R. Bathrick of Ohio, has no
vel plan for combining the movement
for better farm credits with the
movement for good roads to the great
benefit of everybody in the country
.and%&Without a penny's expense to
anyone. In other words, if the gov.
'.ernment undertakes any great: sys-
tenn of supplying capital to- farmers
at cheap rates there are sure to be
large profits accrutng to tho govern.
ment from this source, even though
the government charges a very low
rate of interest. This profit; Bath
rick proposes to apply to- con-
struction of good roads. rATwerty-
five thousand miles of models roads
in five years without cost to the tax
payers-this has become Bathrick's
slogan. -,
The Ohio representative has taken
keen interest in farmers credit,
and was studying the European
forms Of farm finance months before
the recent government commission
for the study of this subject had even
been thought of. Mr.. Bathrick in
troduced farm credit bill in con-
gress nearly a year ago. Ha kastwtce
reintroduced this bill with modif ca
tions based on further study Of the
subject, the last -reintrod,1etioffi corr,
tanning his plan foEgood roads con-
struction. 49,,
Mr.. Bathrick believes the govern
ment itself is the proper agency to
conduct this great financial institu-
ton for farmers. His proposition is
to have the government issue bonds
based on farm land mortgages
which will be offered by farmers ben
citing in the plan. With this tre-
mendous credit; the government can
borrow millions of, dollars at 31-2
per cent, money ich can be: reloan-
ed to farmers at an advance of one
per cent. Farmers now pay on the
average per cent 'on money Dor
rowed on the security of mortgages.
'The benefit Of nay plant to the
people would be- two, fold," said Mr..
Bathrick: "a general back-to-the-
farm movement and improved rural
highways extending Ito every prom
inent city in. the country: The plan
involves the institution of Federal
Farm Credit scheme, embracing
direct loans on farm. lands and in
direct loans through banking COM
panies to assist in providing for short
time crop loans.
cit is not an extreme assumption
that after a reasonable time of oper-
alton the government would have
loans outstanding. to- the amount of
$1,700,OO0,OO0 on the mortgage of
the farm home owners. This would be
$1,3O0,O00,O0O short of the total
land mortgage farm: debt, At the
end of the first six months period,
after the interest had been paid
upon it's bonds, the government
would have in it's funding account
for re-investment So, 800, 600. This
sum is re-loaned, Thus the govern
ment would be drawing compound in
terest upon it's farm investments. AS
we take each re-loan. sum for all Of
the six months period of the five
years, relending at the end Of each
six months, the net profit to the gov
eminent after deducting expenses is
100000, which will build 22,.
666 miles of public roads at a cost Of
$4,000 per mile. ~'<%
GAS soon as the re-investment Of
the governments profit is we'll made
bonds should be issued against it te
secure the cash for the road building
which could begin the. second year
The money borrowed by the farmers
would be repaid by the amortization
or installment, principle, so that in
about rs years of small payments the
borrowers would cancel their debts