Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1914-08-07

can never be raised during the life
of the loan.
Thus we see that such a system
reduces interest rates, makes the de-
mand upon the farmer consistent
with his income, eliminates commits
sions, protects him from foreclosure
and from an advance of interest rates.
1t changes a mortgage from a bur-
densome debt to an advantageous
form a credit--an investment"
The postal deposits are loaned to
saving banks at two per cent. The
state loans it's surplus at two per
cent. Suppose young man, having
saved $1,000, could go to the state
or to the United States and borrow
$4,000, not at two per cent, but at
three per cent. If he should pay six
per cent on this amount, or $24O an
nually, at the end of 20 years, APP
proximately, he would have Cancelled
the principal and interest.
Will there not be objections to this
plan? Most assuredly. One objec-
ton will be that it may tend to re-
duce the value of money. 1t is just
as well to understand the funda-
mental problem. If you happen to
raise prunes you are naturally much
opposed to anything that would tend
to reduce the price of prunes. If
cattle raiser, you do not look with
favor upon the introduction of Aus
tralian beef. In like manner the
banker who loans money at 10 per
cent under certain conditions to buy
COWS will not become enthusiastic
over a system which would permit a
man to pay off principal and interest
in % years at the rate Of six per cent.
But the banker is not the only per-
son interested. Every person who
carries life insurance or has money
in the savings banks is concerned.
The farm ers of the United States are
as a class money lenders. They are
the principal source of capital for
young men who are beginning to
farm. This is one of several reasons
why the credit banks of Europe may
not be applicable to American condi-
tions. Undoubtedly the present silly
methods both in receiving and han
ding postal deposits was caused by
the fear that reasonable methods
would reduce the value of money.
The whole question is one between
the rewards of capital as compared
with the rewards of labor. The
laborer in the city has, through or
ganization or otherwise, a method of
maintaining the rewards of labor.
No such opportunity exists in the
open country.
| do not ask you to assume that
there would be no difficulties in the
execution of this plan. l merely de-
sire to convince you that some such
method would be worth while. l am
perfectly familiar with the arguments
that have been used and will be used
why the United States and the state
may loan money to banks and may
not loan it to individuals. My reply
to all these arguments is that we
have before us matter of the deep
est national concern. If men of
brains and character, in the future
as In the past, are to cultivate land,
they must have an even chance with
their wage-earning brothers. Every
man Is going to try to make for
himself and family a comfortable
home. If he deems he can not start
with an even chance on farm
he will go elsewhere. This is not a
plan to help the farmer; it is
plan to help the nation. When the
people come to understand that this
is So way will be found by which
money may be loaned to individuals
as we'll as to banks and upon sub
stantially equal terms.