Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-05-11

one-quarter or one-half less than the
banks in another State may be paying
because of the risks and delays incl
dent to loans in virgin territory. In
other words, it is prophesied that II,
saya eight districts should be created
throughout the United States the lack
of uniformity in profits due to varying
interests rates would bring about dis
satisfaction that might cause the col
lapse of the whole system. 1t is SAID
also that farmer-ca pitalists VIII be un-
willing to subscribe their money for
land bank in Indiana. for example, to
be loaned out upon lands of which
they know nothing, away up III Mon
tana.
The Government, by supplying the
capital, of course, could provide uni
form rate of interest-although upon
that point it may be remembered that
in the Federal reserve bank system
uniformity Of interest rates in The Va
rious districts is not prescribed by
law The practical farmers of the Mid
die West are said to be doubtful as
to the expediency either OF borrowing
Government money with when TO
finance the land bank system, orc
extending the operations of any indl-
vidual bank beyond the territory OF
which It is the more or less immediate
centre.
Representative Moss. who is also
prosperous farmer, summarizes TINS
Middle Western sentiment In ABOUT
these words I'm my country We nave
what is known as the gravel road
system, which to my mind represents
the essence of what land bank sys-
TEN should be. Suppose we want TO
build a road costing. say, $1,000. we
get our estimates and apply to the
county commissioners for bond is
sue covering the cost Bonds are then
issued and sold and the contractors go
TO work / obligate myself to pay
| certain amount year for twenty
years. Iff fail to make my payments
the State has the right to step in ana
sell my farm.
"In other words, we capitalize our
own improvements; and that is what
| | think should be done under the pro-
posed land bank system Let the banks
be organized with private capital TO
operate In a certain limited territory
If the people of Montana want money
to develop their land, let them raise
| it, They know better than anyone else
whether their lands are worth devel-
cping and will make good security. III
they have not money enough in their
own community there is no objection
to their going to Chicago or ST. Louis
or anywhere else and raising 1t for
their capital stock, but they should not
take the money of one farming com
nilnity to pay for the development of
another. nor should they have APP
praisers travelling away up from
somewhere in the middle west to look
over their farm lands whenever they
want TO make a loan. If some such
plan as this is not adopted, l am very
doubtful whether the scheme will
prove attractive in many States.
Would you go so far as to say that
If a Federal land bank scheme is in
stituted there is danger that in many
States it will be sidestepped and the
farmers will organize their own land
banks under State laws?'
There certainly is danger that this
will be done, unless the system is de-
vised with great care and takes all
these points into consideration re-
plied Mr.. Moss.
President Sees the Point.
President Wilson is not at all I'M
mindful that this land bank legislation
may be a State matter, but he is anx-
iuus that Congress shall provide a
model law, which will be based upon
the soundest banking principles and
will render a service in providing uni
formity of action, even though COM
plete Federal system may not be in
sisted upon. The advocates of rural
credit legislation, or many of them.
have believed that whatever bill is
determined upon by the Administra-
ton should be given to the country for
study. The Commission bill was made
public a long time ago and every ag-
ricultural paper in the country has
commented upon it, as rule favora-
bly,. The Bulkeley subcommittee