The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1914-07-08

on the faitl, of its credit, but here 1t
is secured, dollar for dollar, and has
a margin Of one-third more than the
face OF any bond.
While we admit that MORTGAGE
! real estate do not constitute the most
desirable banking paper, bonds issued
by the government, based on these
mortgages. are as acceptable and as
convertible as gold notes.
There xxthelh, awkfditiccc.u ?lofz
Private Capital Is Shy.
There is abundance of 3 per cent
money in the United States, but cap
ital is proverbially shy. Agriculture
is languishing for lack of developing
capital, but the isolated farmer can
not reach the real money cent"
This bill makes the government the
medium through which the borrower
and the lender can meet on terms Of
fullest confidence for mutual az
vantage and for ven greater ad-
vantage to the government itself.
1t will be noted that under IT,
terms of the bill the greatest amount
that can be loaned to any one person
is $500. The purpose of this provis-
ion Is that the benefits of the bill may
be extended to the greatest possible
number, and especially to the small
farmer and tenant. who needs it
worst.
Now. let us consider some Of the
practical workings Of the bill. Take,
for instance, the small farmer who
owns, say, 100 acres of land, valued
at. say, $40 per a, :e-and I may add
that this bill is intended to reach the
less densely populated rural sections,
where land values have not already
soarded beyond the reach Of the man
of moderate means or no means at
all. Say he owes a thousand dollars
on his land. 1t is difficult to get an
individual to carry a mortgage for so
long on that land, and rarely will he
carry it for less than s per cent inUor-
est. When he has paid his interest,
taxes. and living expenses he has lit
tie or nothing to put on his debt
nothing to put on improvements. The
consequence 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 a low rate OF interest, stipulated
annual payments, and long time guar
anteed, he a carry his debt and i'm
prove his property every year. Ag*
take the tenant who always pays his
rent and his store account or his bank
note-and there are hundreds OF
thousands of them who do so, but
barely break even one year with an
other-he 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, 500 per acge. The 100 acres
will contain a three-horse farm, leay-
ing % acres for pasture. If 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 today's market, is
worth 1897. 80.
Now, the landlord cannot wait 10
years for his money, nor is he able !
take only ) per cent interest. So un-
der the provisions of this he sells 100
acres of land to his tenant, waving
the first mortgage. The tenant then
gives his first mortgage to a national
bank as part of a serial loan. and he
turns over the cash received on this
mortgage, together with a 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 been paying
for rent.
Let us see if this is not a fact. The
annual payment of principal due the
bank will be s150. The first years
interest will be SIS, making a total
1925. and leaving a margin out Of what
has been his annual rent paid. of
$172.50 to be applied to the second
mortgage held by the former landlord.
The accruing interest grows smaller
and smaller each year until the last,
when it will be $3.50, making the final
$157.50.
1t is thought by some that the aver
age 100 acres of land will not furnish
more than a 2-horse farm, which we
will grant for sake of argument. Then,
deducting one-third from the usual
rent for a 3-horse farm, which in dol
Jars, as above figured, would amount
to $397.50, we have for a 2-horse
farm $2G5. enough to meet the pay
ment of principal and interest and
leaving a balance of $40 to be applied
to the scond mortgage. Let us keep
in mind the fact that the landlord has
heretofore gotten all this. which IS
only a fair return On his investment:
and what the tenant is able to clear
above his rent and necessary expenses
and a few clear something-only fits
him better for improving and building
up his farm.
Give the Tenant a Chance.
Now, while I have said of conditions
in the cotton belt because l have per-
sonal knowledge of conditions there,
crop values there are perhaps little,
if any. better than in other agricultu-
raj sections, and the per cent of ara
Bile land to the hundred acres will not
average as high as in the west and
northwest.
Now, Mr.. Speaker. I plead that an
opportunity may be given the tenant
in the cotton belt for Illustrations, not
one of you who comes from an agri-
cultural or semi-agricultural state but
has honest, Industrious citizens OF