The review. [volume] (High Point, N.C.) 1908-19??, 1914-01-08
SOME, OBSERVATIONS
ON FARM CREDIT
CIV Hon. E. R. BathriCk.)


Mortgage Loans on farms up to I
: percent of the value for tenants VIII
wish to buy.
Do we need to do it in order t
accomplish great good? If so SOM
other countries have found it safe.
The Government can safely ane
proftably lend up to 90 percent O
the value of security on first mort
gage at four and one-haif percent
lit it lends to all tenants who car
praduce 40 percent of the purchase
price of farm, we will do much t
decrease tenancy.
J Whether the tenant has this 4(
percent or not. depends largely or
price of the farm. Every farm ten
ant knows that a small farm wei
titled is better to him than big
farm we'll rented for the owner.
A low rate of interest and long
term mortgage will encourage them
in buying. Those who nave less
than the 4Opercent will be encourage
ed by the same reason to get into
the 40 percent class.
No private-C capital farm credit plan
can lend more than 90 percent on
mortgages and expect BONDS IS
SUED AGAINST THEM TO SELL
/ AT PAR. If more liberal lending
is necessary the Government alone
can do it and must do it on the
theroy of public policy. Private
capital will not do it. Then why
complain of Government Loans on
this ground? If we lend up to so
percent now, we will likely never
reach the necessity for lending up
to IS percent.
One writer is afraid that cheaper
interest rates and longer term mort
cages v i'll raise the price of land SO
that the buyer Of farm will not be
benefited. Will this rule work both
ways? If so, why raise the present
interest rate and make the farms
cheaper? Will that help decrease
tenantry?
Only the more thrifty Of the farm
tenants will buy farms. Take these
away from the tenants who are
seeking to rent farms from landlords
and the landlords may want to sell
their tenant farms after trial of the
thllftless tenants. Anything which
encourages farm tenants to buy will
put tenant farms on the market for
sale and this condition will undoubt-
ly steady the price. But the num-
Der of tenants We now have, is not
more important than the number we
may have if we do nothing.
A lower interest rate and better
terms will keep many of the present
mortgaged farm owners from them
selves becoming tenants.
Fol the farmer, just emerging from
a long battle with a devil mortgage,
with a run-do Vn, wrecked farm,
these advantages will afford a chance
For him to safely borrow and i'm
prove.
Lending money at lower cost
and better terms is the core of the
farm credit question. Any plan
emitting these essentials is useless.
If lower interest rate will bring
disaster, the subject should be- dis
missed.
Some want a lower interest rate
to some with Natural Condition.
Natural conditions are: private con-
troll of money for the profit. All the
States have tried to lower the rate
by law. Natural conditions Circun-
vented the law. Let the govern
ment be the lender on the farm
at maximum rare of four
and one-h half percent. That is the
only sure way to lower the interest
rate. Not cent of the tax payers
money need be used. The Govern
nent can borrow and lend. 1t can
be trustee for the lender and bor-
rover. Take no risk and make pro-
TT for the whole people.
There is no need for spying in
spectlon nor rigid restriction of what
is done with borrowed money. The
farmer is not a gambler. He will
not bet the money on a horse race.
Not one in ten thousand farmers
will mortgage his farm for other
than farming business.
If Inspection is necessary, the
Government has the best possible
means to carry it out at least cost
and in way that will neither of.
tend nor obstruCt the iniation of anv
American farmer.
THIS GOVERNMENT is CO.
OPERATION. It's here now. It is
Deter a Bile III carrxz out |