The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-03
GLYNN URGES LAND
BANKS FOR FARMERS
Sends Special Message to Legi,.
lAture and Two Bills
Are introduced.
FAvORS LONG TIME LOANS
Agriculturists Could Save S2l.
100000 to S82,OOO,OOO by
European Plan.

| Ae's
| ALBANY, March Gov. Giynn sen.
special message to the Legislature ia
night urging legislation TO allow the ,o-.
nation OF land banks In this State. Two
bills providing for the establishment =,
these banks were introduced in the Ier..
iature at the same time Either would carry
out the Governors plan and the Legls
ture has the choice Of either one
The Governor pointed out in his mas.
rage that conditions In this State call ,o-
the establishment OF land banks from
which the farmers could procure lonr
term loans. A gradual decrease In tn,
cultivation Of farm lands In this State and
a constant rise In the price OF the nec.,
saries Of life, the Governor points out
demand the adoption OF some system I'm.
der which the farmer will be able TO rsn.
der less difficult the pursuit of Agriculture
Concerning the establishment Of AVA
banks. the message says:
| There are two ways 10 do this Ons
10 by the establishment OF n large central
| bank issuing debentures TO be secured by
mortgages placed by savings and loan ~
sociations acting as feeders for the cen.
trail bank. In this system existing as.
socta tons together with savings and l)sn
associations to be organized among farm.
ers would be stockholders In the central
bank.
THE members OF these associations
would be allowed the privilege OF borrow.
| ing money on the long time amortization
plan. This system is favored by leading
members OF the State Agricultural Society
| and OF the State Grange as well as bv the
| mr. credit nj h
the commission to revise the banking
laws.
THE other system, authorizes the Tor.
nation Of land banks as stock institutions
1 by the subscription OF private capital
/ This system 10 advocated by many leading
agriculturists and financial experts who
have devoted much time to the study q
agricultural credit abroad and TO our need
for IL at home.
Argues for Long Time Loans.
Experience. necessity and self-eviden,
| economy all urge the Introduction OF
! system OF long time loans based upon
! the amortization plan. II Is not for me 20
impose my views as to the details OF that
system upon the Legislature. but there
are CERTAIN base prime Piles underlying all
| systems OF long time amortization loans
which must be observed in any successful
plan.
In the first place there must be some
! association or corpor ton to make these
I loans individuals cannot wait nifty years
for the return Of their money. To ~ X
I sure that the land bank thus ORGANIZED
! sh II devote the necessary attention TO az.
r.cui,ure there should be a provision In
the law providing that part Of its mort
cages should be made on farm land.
Finally. the law should incorporate =
| provision which viii give the borrowe-
the right to extinguish his entire debt al
| any time he desires and is able to do 90.
Gov. Glynn says that the easiest way 10
the possess on Of land IL through the long
time loan. pointing out its advantages "a.
| follows:
THE long time loan gives the advau.
tage Of compound interest to the debtor
instead Of to the creditor.
1T enables the borrower to pay h.s
! principal on the instalment plan tina,
! the burden is scarcely felt II 10 a force
syst, IN OF saving which drop by drop viii
wear away the d.sheartening rock OF tie
farmers Indebtedness.
Makes the Farmer the Master.
1T makes the farmer the master in.
stead OF the slave OF has mortgage
There is nothing revolutionary or
strange In the system of agriculture.
credit ! propose. II is simply "A plan Tor
arording the farmers OF New York tAe
credit facilities enjoyed by the farmers o.
other countries"
After pointing out that the platforms
OF all three parties, both State and Ia
| tlonal. favored Improvement OF agric-i-
tural conditions, Gov Glynn explains hls
reasons for sending in the mcssag. 70.
and banks as follows:
THE farms Of New York State. accord
Ing TO the last United States census .-,
mortsaged for approximately slOO, 00oo.o
Il respectfully suggest to the Leg siA
ture that II can institute system o.
agricultural credit which will save Tie
farmers OF New York s2+,000,00o
present mortgages are converted into ten
year amortization loans and $4,000 o0p
II converted into Atty year amortization
loans
by amortization loans mean that Sc
tenn of loans now used in Europe unl.i
which the farmers of Germany France
Great Britain and Italy borrow none,
on their land and pay il back in Iu.tA,.
m.nis at easy rates OF interest
For a thousand dollar loan AZ 4 gel
cent for ffty years German farmer pays
1894 annually or only s34 ov.- ts.
interest. But these small additional Sums
insignificant 10 an American farmer " 30
out the debt.
For a loan OF 81 900 at ror cen,
FOR ten years an American farmer u-.s
$500 interest and the principal Mt the ,l.
OF the term, or $1,000 all told II tae
European system We're available he would
pay sl35.s6 each year. pur.ug IN" IN
years he would pay only Sl.3tst'. u-
S2+l.32 less than under our present s's-
tenn yet his debt would Ne conn ,..E
paid.
Big Saving for Farmers
III New Works mortgage indebted. So
OF sloOoOoOoo were converted uro'r ''