The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1914-07-08
AIKEN EXPLAINS HIS LAND LOAN BILL
Provides Method by Which Small Land Owner
May Borrow Money at Five per cent Makes
Possible for Tenant to Own Home at
Low Rate of Interest.

on as the DOT OF the OuntrS evils,
and the g~overnment set about to right
those evils. A system of land banks
was established, through which the
government loaned small sums to ten
ants, at d low rate of interest, with
which to buy homes.
Improved conditions were apparent,
from the beginning and today, thanks
to SwitZerland's land-loan system, 80
per cent of the agriculturists of that
country own their homes, the banks OF
the country are prosperous, and, con-
sidering the rugged nature Of the soil
it is one of the most productive agr1-
cultural countries in Europe. When
a commission was sent by the United
States to examine rural-credit systems
in Europe and to observe results,
members of the commission were
amazed to find that European farmers
were supporting families on | and z
acres of ground and that 20 acres con-
stituted a very large farm. The
wore informed that the high per cent
OF production was due to intensive
farming, that intensive farming was
due to ownership and that ownership
was due in large measure to land-loan
banks, organized in whole Or in part
BY government aid. They unquall-
fedly and unanimously recommend
that some such system be worked out
for the United States.
The commission recommended a bill
which is a part of their report, and
which, though entirely right in pur-
pose, is, in my Judgment, subject to
serious objections. The bill contains
81 sections and is too cumbersome. 1t
undertakes to outline in detail
such provisions and restrictions as
should be worked out by the secretary
of the treasury. 1t proposes an intri-
cate system of land-loan banks, to be
created, with hundreds of provisions
and limitations to be guarded by spe-
cial officers created under the provis-
ions of the bill. But the most vital
defect in the bill proposed by the COM
mission is the plan OF basing .rura
credits on arbitrary associations OF
farmers, afterwards to be organized
under some visionary form of charter
or on plighted faith Of such farmers
organizations as the grange, the alli-
ance to the union. all Of which have
cone good work in improving rural
conditions, but none of which is suit
ed to the peculiar purpose OF forming a
compact, unchanging basis of credit.
Land Loan Department.
If a bill of such length and details,
with such undigested provisions for
the original basis Of credit, Is such a
bill as the President and the Demo-
cratic leader (Mr. Underwoodl have in
contemplation, I am surprised that
they hesitate to consider it at this
session. But I'm SUR that a SIM
pie bill such as I have introduced.
which does not undertake to outline
departmental work and which is clear
cut and free of su~rplusage, can be
considered and passed by this house
without p~erceptible loss of time. l
am equally sure that no measure
has been before this house in twenty
years that would be more far-reach-
ing in it's beneficial effects for the ten
ant and the small landowner, and
eventually for the nation, than this
bill if enacted into law.
The bill that I have introduced, H.
r. 1602S, uses the national banks as
now organized, creating a land-loan
department in those banks as simple
as their present savings department.
'rhe original basis of credit is In the
land of the individual and this is pass
ed on under my bill, as under exist
ing national bank law by the president
is, by a sane and simple law, to re-
move the inhibition against national
banks accepting land mortgages as Sc
curity and to provide the means by
which the farmers collateral will be
given an equal chance and by which
he may be enabled to secure money at
q low rate OF interest that will enable
him to grow. That my bill fully
meets the requirements, I propose 10
show further on in the course of my
remarks
No fair minded man will deny that
up to this time the whole machinery
of our money and credit system has
been directed toward the aid Of tie
city and not the country. Legisla-
lation, has gone along in this channel
for so long that even the farmer has
come to think he is dependent on the
city for his credit. He has been ed
ucated in the school of adversely to
put the cart before the horse.
Why should the farmers of the Uni
ted States with realty values worth
$40, 1000, 900, 900 and raising annual
products amounting to over $10,000,-
100000 have to beg for credit at exc
bitant rates either of the merchant or
the local banker, when that merchant
or the local banker will take The far
mer's collateral and with it borrow in
New York at > per cant.
The sooner all industries realize
their first dependence to the farm,
that all primal wealth has its origin
there, the sooner will real wealth IN
larger degree como To city and copn-
try. Mr.. Drvan never uttered u tru:r
saying than lat We may destroy Il
cities and let grass grow in our streets
but II we maintain a high standard Of
agriculture the cities will pc repuiit
larger and more prosperous .han
ever.
The Rate of Interest.
But, say some, the farmer is already
paying interest to the amount Of $780,
000,000 annually, an amount larger
than the annual returns from our
wheat crop, and he can not or should
not take on additional burdens. We