Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-01-23
a,Ll INTRODUCED BY SENATOR
NORRIS or MOMENT TO
FARMERs OF. NATION.
AIMED TO ENABLE POOR
MAN TO PURCHASE LAND
Author ssiisvss Many Tenants Would
20 Able 70 Become Farm Owners
Declares Honesty Has Been Safe.
auardsd by Provisions Of Measure
separate Bureau to Administer Law.
rspecial correspondence.1

GRAFTON or tho SupJect OF Iufa cre0lIS z
bill which has been introduced by SEN
ator Norris. Of Nebraska, is likely to
command much notice. It provides for
a farm loans bureau in the department
Of agriculture. In explanation Of It,,
Senator Norris has given out the fol-
lowing statement:
Tho bin I have introduced for a bu-
reau Of farm loans in the department
of agriculture provides for the loaning
Of money direct to farmers who are
actually engaged in. farming or who
TO- use the money to make part pay
ment on the purchase price Of a farm.
It provides for the loaning Of amounts
as low as 800 and up to and including
$4,000. The loans bear per cent in
terest payable semi annually. Under
the provisions of this bill. 1t requires
ten years for the full loan to mature.
At the end Of Ave years, one-ffth Of
the principal becomes due and there
after. one-fifth natures each year. altho
the bill provides that the farmer may
pay the entire loan or any part Of It
at any interest payment date.
safssuards TO Honesty.
Il think the bill contains all the nee
essary safeguards to prevent q dis
honest man from getting q loan, and
also, to prevent anyone from getting a
loan who 10 not actually engaged in
tilling the soil. It provides for the
utilization Of the postoffice depart
ment Of agriculture in the way Of in
speeding and making reports upon
loans and upon applications, and also
in the collection Of the same. These Of
ficers and officials are already drawing
salaries from the government and the
bill extends their duties in such a way
as to make 1t possible for these loans
to be made. inspected and Il necessary.
collected in the courts, with but very
little actual expense.
For tho purpose Of getting the
money to make the loans. the bureau
provided for in the bill is authorized to
issue bonds In amounts Of 500 or any
multiple thereof. bearing interest at
3h per cent These bonds run ten
years. but are payable at the option OF
the bureau. any time after five years.
tits .intended that the-bureau shall sell
bonds only when 1t ID necessary to oh.
tain money to make loans. In reality,
farmers government bank, which will
receive time deposits at 81 per cent
interest and loan the same on farms at
4 per cent interest. The difference in
the rate will in my judgment, much
more than pay the expense and make
good the losses. and there is a provision
in the bill that after 1t has been in or
Grafton sufficient length Of time. the
bureau may make the loans at less
rate than 4 per cent, and II they are
able to float bonds at par for a less
rate than 3h per cent, then the bonds
thereafter issued shall bear the lesser
rate OF interest. 1t does away with all
commission and gives the farmer his
money at cost. The safeguards in the
bill will prevent any bad loans being
made.
An Aid TO Tenants.
"The important thing the govern
ment really does Is to give the farmer
the benefit of its credit in getting tho
lowest possible rate OF interest. 1t will
enable thousands of tenants to become
land owners: it will induce thousands
of other citizens to go from the city to
the farm: 1t will be great step to-
wards the lowering Of the present high
cost OF living. The farmer has the best
security In the world, but under pres
ent conditions. he pays the highest rate
of interest. This bill gives him moth
ing except what he furnishes good Sc
curity for. The new currency bill pro-
vides for the issuing Of a large amount
Of new currency based on the security
Of notes and bills presented by tho
banks, but the United States govern
ment guarantees the payment Of every
dollar OF this currency on demand, in
gold. If the government guarantees
this currency issued by the banks, why
then, should it not lend its aid to the
farmer who offers the best security
known? Especially is this true when
under the bin have introduced there
will be no possibility of the government
losing dollar. The farm is the source
of all prosperity and all wealth, and
the government can well afford to give
to the farmers the same assistance that
1t gives to the banker and the business
man. If we want to keep the rising
generation on the farm and interrupt
the present tendency Of leaving the
farm and going to the city, we must
make farming more proftable: we
must legislate with view Of getting
more landlords who actually farm ana
less tenants. In the end, this will re-
dound to the benefit Of all classes Of
citizens"