The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-09-01

of interest, but he can only get y Oh
short time. Bank lend money IN TINS
state for sixty and ninety days gener-
ally with the privilege of one or TWO
but the trouble with the
borrower is that when times get nara
and money tight with him, 1t gets ught
and hard with the bank also ana the
bank calls on him for the money ana
he must scuffle around and incur au-
ditional expense to get the loan re-
newed.
All of the bills now pending before
CONGRESS agree in one particular. to-
wit: Ina the borrower shall be per
mitted TO pay ack a loan, a little at
a time, and from year to year
The advantage of this plan is so ad-
mirably set forth by I. n. Carver, ol-
rector OF rural organization service,
in farm bulletin No. 593. entitled:
How to use Farm Credit" that l urge
all persons interested in this subject to
read it. Our wise men have discover
ed a big word to designate this plan
Of paying back money in broken
doses. They call it the Amortization
Plan" which we Will consider here
after.
The Hollis-Bulklcy Bill N Cooper
alton.
I heartily approve of the passage
by Congress of the Hollis-Bulkley bill.
1t will no doubt be put in successful
operation in States like Wisconsin,
where the farmers are thoroughly Or
ganized and know the value Of CO.
operative societies. But l fear that in
the South and in other sections of
the Union the machinery of a bill
of his kind is SO complicated that
it would be a dead letter and would
not work.
The organization of cooperative in
stitutions among u farmers will
hasten a system of rural credits. /
knOW of nothing more inspiring than
the work of the Catawba county
farmers along his line. Bulletin No.
119 Of the University Of North Caro-
lima Record which treats of the Ca
tawba Cooperative Creamery Com
pany," "Catawba Sweet Potato Grow
ers' Association" "Catawba Farmers
Union Warehouse Company" Ca
tawba Rural Credit Association
should be in the home of every farm
er in the State. But as pointed out
by John Sprunt Hill, a member of the
American Commission in his address
before the Conference for Education
in the South at Louisville on Land
Mortgage Credit Associations" it is
difficult to organize a Joint stock
bank" and it is very difficult to sue
cessfully operate land and loan as
sociations in the State of North Caro-
lima. Building and loan associations
have done good work at Charlotte
and in some other cities, but they
hive generally either failed or fol-
the lack of patronage accomplished
little good.
Plan Suggested: Direct Loans on Farm
Lands.
The minority report of the Ameri.
can Commission severely criticises the
European system of cooperative
farm loans. | would not undertake tC
pass upon his delicate question. But
think that all will agree with me tina
at this time in the South the com
munity spirit is not sufficiently de.
T veloped to warrant the adoption O
such system. Our Southern people
/, are self-aSsertive and individual ant
: while they are homogeneous, in on,
+, sense of the word, they are not gre
garious, they live in sparsely settled
: n~eighborhoOds, nor are they Of a uni
: form religious belief.
2 If the Hollis-Bulkley bill is no
adapted to Southern conditions wha
financial pla should be adopted
: The government should lend none,
directly to farmers without any un
! necessary machinery or circumlocu
f ton. his could be done easily am
e with safety. My suggestion is tina
t the details Of ~loaning should b
: worked out by the Federal Reserv
e Board, as created bv the act of Con
S gress of December, 1913, entitled
j The Federal Reserve Act" and tina
e some of the machinery of the Hollis
T Buckley bill should be used in maxim
these direct loanS-Such as the ap
e pOintment of "a farm land commission
er; the p for which such loan
S would be made; the per cent that tn
+ loan should bear to the land mort
e gagged n TO the value of the i'm
provements upon the land; and tn
incorporation into each mortgage c
the "Amortization Ian" My frs
n object would be safety. To this enc
II in each a district, which might en-
n brace an entire State, a fund, of sa
e one half of one per cent would b
ir taken from the money lent and Sc
e aside to meet any possible losse
1t upon the various mortgages With
= said loan district. This reserve fun
te would increase from year to year an
is could be also loaned out to advantae
Id and at the end of the amortization %