The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1914-09-03
Better Farm Credits.

Better Farm Credits.
All states and also the federal gov
eminent have recognized that rapid
development of farm lands, and an in
crease in the number Of farmers own
ing their land is impossible under the
present system of farm credits. Pho.
neers or settlers on uncultivated land
cannot hope to take from the soil suf-
fcient money in the term of years or
dinarily granted on loans on farm
mortgages to discharge the mortgage
by the time it falls due. The same is
true of the farmer whose land must be
drained and fenced and whose perma-
uent buildings are still to be erected.
Germany owes her tremendous adj
vances in agriculture to system of
rural credit, which has been in opera
tion for many years. The system which
has been adopted in Wisconsin is SINH
lar to that which has contributed so
much to the prosperity of the German
people.
The land mortgages association law
of Wisconsin, adopted at the session of
1913, is designed especially to assist
those desiring to secure farm lands and
those desiring to place permanent i'm
provements on land already owned or
purchase equipment.
Land Mortgages Avoided.
Heretoforefi money lenders have not
considered the land mortgage as con-
venient and desirable security Good
land mortgage always has been consid-
cred as perfect guarantee against loss
of principal But, generally, neither
banks nor individual investors have ae-
copied land mortgages because these
securities cannot be quickly and easily
converted into money. And banks
must have their funds invested in Sc
curities that are always marketable
securities that are of standard denomi-
nations and can be sold in any quantity
from 500 up, and that can be sold in
any money market without a sacrifice
of value. The regulation old-style
farm mortgage was too unwieldly, too
clumsy an instrument Of credit to be
popular with money lenders. And this
element more than any other has de-
MED to the farmer the credit to which
his business and his property entities
HIM. On the other hand, the fact that
farm mortgage loans were given for a
short term, five to ten years at the
most, made the land mortgage a diff
ficult thing for the farmer to handle.
In addition to high rate of interest
under the old plan, the borrower often
was required to pay considerable
commission to the person securing him
the loan.
Pay in Installments.
Under the new law these loans will
run from ten to twenty or even thirty
years and can be paid off in small in
stallments without danger Of the mort
gage being foreelosed. This plan is ex-
Pected to greatly assist in the develop
ment of Northern Wisconsin and to en-
courage settlers in every part of the
state where there is idle or unre.
claimed land.
Under the plan outlined in the 1913
law, fifteen or more persons, adult resi-
cent freeholders of Wisconsin, may in
corporate with : IL. A stock of vol
less than $4,000 for the purpose Of
making loans secured by first mort
cages on Wisconsin real estate. The
mortgages thus obtained may be de
posted with the state treasurer, and
the association may then issue bonds
up to the amount of the mortgages Sc
deposited. The bonds issued are the di
rect obligations of the association and
shall at no time exceed the amount OF
the securities on deposit with the
state treasurer.
Each association, the act provides
shall be managed by board of trus
tees and shall have committee on
loan sand an auditing committee. The
duties and functions of the different
officers, boards and committees are SC
planned that each acts as a check up
OIL the other.