The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-07-07

payment of all konds issued under this
bill? Millions Of dollars are annua'
appropriated to carry on agricultural
experiments In this country, and II
has given US pleasure to vote for nll
these appropriations; but how much
more effective would he these expert
mcnts IL they were carried to tc
lahdownng farmers where they arc
now carried to one.
In guaranteeing final payments of
the bonds issued under the provisions
of my bill the government assumes
absolutely no risk. The bonds are Is
sued on mortgage of real estate for
not more than two-thirds It's value as
pas ed on by the bank president The
bank. the governments own creature.
fs located in the same vicinity AS tho
borrower, and the character OF
land hypOthccatcd or sought TO nc hy-
pothccatcd Is known to the bank Drcs-
idcnt. and there Is no possible way
under this bill that the hank oiliciaIs
could accept Inadequate collateral or
fleece the government except by
themselves suffering first.
The bill provides that the govern
mcnt and not the banks shall issue the
bonds. because in this way they may
t.; iloated at par. bearing the lowest
possible rate of interest. The bor-
rover is too far removed from I,
money center: To get Il loan even a.
a high rate of interest. and 80 he puts
his security hehind the government
and asks It's mediation. On more tni,m
one occasion tho United states gov
eTnnlcnt has borrowed money purely
thn fnft
Is secured. dollar for dollar. and has
margin Of onc-third more than the
face of any bond
Whilc VIC admit that mortgagcs
real estate do not constitute the most
desirable banking paper, bonds issued
by the government. based on these
mortgages, are rs acceptable and as
convertible ns gold notes.
There xxthnll.awkfdit III ?lofz
Private Capital IL Shy.
There is abundance of per cent
money In the United States. but cap
ital is proycrbially shy. Agriculture
Is lanGuishing for lack of developing
capital. hut the isolated farmer can
not reach the real money cente
This bill makes the government the
medium through which the borrower
fullest confidence for mutual ar
vantage and for even greater ad-
vantage to the government itself.
1t WILL be noted that under 4
terms of the bill the greatest amount
that can he loaned to any one person
Is $2.10o. The purpose OF this provis-
ion is that the benefits of the bill may
be extended to the greatest possible
nnrphpr on6 IN
farmer and tenant, who needs IL
worst.
Now. let us consider some of the
'ractical workings OF the hill Take,
for instance, the small farmer who
owns, say. 100 acres of land, valued
at, say. $50 per acre--and l may add
that this bill is intended to reach the
less dcnsely populated rural sections,
where land values have not already
soarded beyond the reach ue tbs man
OF moderate means or no. means mt
all. Say he owes thousand dollars
on his land 1t is difficult to get an
individual to carry mortgage for SO
long on that land. and rarely will he
carry 1t for less than 8 per cont inter
est: When he has paid his interest.
taxes. and living expenses he has lit
tlo or nothing to put on his debt
nothing To put on improvements. Tho
con ecqucncc Is many farmers fail to
meet their payments at high. rates of
interest and some lose their lands en-
tirely. When under this bill the man
gets low rate OF interest, stipulated
annual payments. and long time guar
antccd. he can carry his debt and i'm
prove his property every year. Aga
take the tenant who always pays his
rent and his store account or his bank
notc-and thHrc are hundreds OF
thousands Of them who do so. but
barely break even one year with an.
othor-hc has absolutely no chance
under our present system of credit.
Suppose under this bill. he proposes To-
buy 100 acres of land from the land
owner, who knows his good qualities
at. say, SEQ per acre. The 100 acres
will contain a three-horse farm, feav-
Ing 20 acres for pasture. II he Is a.
southern farmer, the regular cotton
rent he has been paying the landlord
was 6 bales OF cotton. or, say, 5000
pounds. This at, say. 13 IA cents,
which Is less than todays market, Is
worth $39T.5 ..5 Il
Now. the landlord cannot walt 10.
years for his money, nor Ia he ablo.t
take only per cent interest. So. un-
dor the provisions of this he soils 100
acres OF land to his tenant, waving
the. first mortgage The, tenant thsh'
givcs his first mortgage to national
hank as part OF a serial loan, and The
TURNS over the cash received on this
mortgage, together with second
mortgage. to the original landowner.
The landowner can easily wait for the
balance OF his money. even at "a low
rate OF interest. and the tenant can
meet his annual payments with less
than he has heretofore hccn having