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

Dill dUlnoI ELiIls uiltIt ltdlS Oh farm
lands
Torrens Land System.
We might pause just here TO con-
slider the reflex good which would r.
suit from the improvement OF our rex
istration laws. Might we not shortly
expect the Yorrens land system
throughout the nation Indeed the
act would provide that the land COM
missioner should not make loans in
any State whose registration laws
failed to come fully up TO the stand
ard. The rate of interest charged
should correspond 70 the legal rate ia
each State. For example the rate
of interest in North Carolina would
be six per cent. OF this sum. as above
shown, one-half of one per cent would
go to the expense account. one-half 81
one per cent to the reserve fund 10
be returned to the owner, if not need
ed; and five per cent. as the interest
charge, WOul go to the United States
government.
How "a Loan Would Work.
Attached to Farmers Bulletin No.
953 are Amortization tables which
show how long it will require To pay
off a mortgage for 81, 600 at five per
cent and at six per cent by making
annual payments Of 500, $50, s75 and
$40. Let us suppose ha, a farmer
wishes to purchase one hundred acres
of land and needs 81 600 to COM
plete the trade.
He makes application to the local
government agency and the loan is
approved. The mortgage is drawn
authorizing him to pay off the whole
debt and interest at any time he
wishes. But it also allows him, If he
desires, to repay the loan of 81, 600 by
making yearly payments or $500; and
it further provides that if he pays
500 each year he cannot be mo-
Tested by the government. The table
shows that in fifteen years he will
have paid off the entire debt, principal
and interest. This allows him the re
turn of One-half Of one per cent at
the end of the period. If he should
not get back any part of this one
half of one per cent it would require
sixteen years to pay back the $1,000
by making an annual paymen of
500 a year.
Probable Objections to Plan Suggested
The chief objection to my sugges-
ton that the government shall lend
money to the farmer directly, without
the Intervention Of rural associations
or rural banks OF other complicated
machinery, is that the security Offered
by the borrower will prove bad and
that the government will lose money
6y the transaction Just one per-
sonal word here-fOr twenty years. as
attorney for clerks Of the court and
" IL uolCCS, Sudlu lduS, DdHkS di1i a.
great many prosperous farmers, my
self and my associates hav negoti-
ated loans on lands amounting to
fully a million dollars. l ave never
lost a cent thereby, nor have / sold
out one acre of land under mortgage
nor had a law suit. AL careful at
tOrneyS in North Carolina have had
the same experience, I am sure. But
1t is said that the honey is not need
ed in our State. | believaSthat five
millions Of dollars could an0 would be
absorbed in North Carolina in SIX
months. This money would be used
to tax up old mortgages which have
| been outstanding for a long time and
which have been renewed from year
10 year and are a menace to the land
owner, and it would also b. used by
the young men all over the State to
purchase lands and "set up for them
t selves rather than continue the ten
{ ancy system which is so universal in
our State and by farmers generally to
improve their farms. If five millions
OF dollarS were appropriated to our
: state and loaned out, to be prepaid on
! the amortization plaintiffs fund
[ would be perpetual or what is called
2 a revolving fund to be loaned again
9 and again as it was repaid each wear.
A hrSt rate illustration of the value
OF a large revolving fund is in the
[ North Carolina school building and
= improvement fund, originally about
. $4,000, and created some tWenty-fye
years ago. h fund is loaned for ne
of constructing and improv-
; ing school houses. The loans are re-
9 pald, together with -four per cent in
lerest In ten annual installments. The
lunu mas grown to nearly $500. 900.
and an endless chain Of borrowing ana
I building and building and borrowing
i under the wise of Su-
l. pe~rlntenderr Joyner, has produced a
new school house every day in the
y year, Sundays included, from Aycock' )
t administration to Craig's.
1t would not be difficult for the cav.
nme to provide money to make
Ihese loans. ] am advised by the
u treasury Department at Washington
u that the deposits in postal savings
oanks are nearly fifty million dollars
- ana 1haT the In6inr f,-I