The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1914-07-08

for expansion, for intenstfying HI!
methods and increasing his yields
NJ theory, then, is a larger mort
a debt and a smaller Interest
account.
Under existing conditions it is hu'
fair to say that banks car not accom'
modatc farmers at a low rate Of IN
tercst. They are part Of a system
that has been built up in the Interest
Of the city men with government
sanction. Let us have the govern
ment amend the laws in the found;
ton. agriculture, and the whole finan'
CiaI SuperStructurc will be healthier
and stronger.
And why may not the government
do these things? The recent order OF
the secretary of the treasury suspend
ing the rule whereby national banks
were prohibited from lending money
on real estate IA Il tacit admission
that the farmers basis of credit has
been unjustly legislated against, and
that the needs of agriculture. the
needs Of the whole people dependent
on agriculture. will justify not only
the righting of the wrong but en-
larged privileges for this class of Gre
dit. Debt at reasonable rates means
healthy expansion; debt at excessive
rates of interest means tOrp0r if not
ruin.
Nothing for the Tenants.
But what of the tenant class WHO
constitute fully ninc-tenths of the
farmers of the country? They have
no lands to mortgage even at the high
rate of interest the landlord must
pay. Their lot is hard indeed. They
pay from 10 to 40 per cent for the
money or provisions furnished them
by the merchant or landlord, and to
this good day the door Of hope has
been closed against them to such all
extent rs 10 make it next to impossi-
bic for any of them to live under their
own vine and fig tree.
There is no calculating the increas.
ed production that this country is
capable of if. by virtue Of an act of
congress, a large per cent of present
When a man knows that he and his
children will surely profit by the i'm
provements he puts upon his land, he
has some incentive to bring that land
to its highest state Of produGtivenesS.
(-fyyn &, mon on incnntiyo un,,,atbir
to work to with reasonable hope, and
he will lift himself to the higher
plane. The man who owns his LAND
is no better by nature than thousands
who do not own their lands but own
ership gives him better opportunities,
opens up for him a broader field and
makes Of him a more stable citizen.
1t has been we'll said that he who
owns his soil is in partnership with
the Almighty"
So fertile has been our virgin soil
and so varied our natural resources
that we have given little thought to
shortage of production. We waEr to
hold our monopoly of ?hw cotton, md
supply is not keeping pace wit
our rapidly increasing population.
and yet year by year tue supply is
failing further behind the demand.
AS previously stated. our grain and
supply is actually alarming. The ne
cessity for intensive farming, for
building up personally, owned homes
while the falling away of Jul mea,
such as produce corn and meat and
eggs and vegetables, is apparent: but
the means to meet that demand are
wo@fully wanting.
My bill provides a system that will
give, the smaller farmer a low rate OF
interest through national banks. and
yet give the banks the usual margin
Of profit.
Granting, as l believe the majority
of my bearers will, that there is L
gent necessity for some such measure
I propose to show that this bill is
practicable and will fully meet the
demand.
What the Bill Provides.
The bill provides that national
banks may establish land loan de-
partments. This is made a separate
department of the banking system
that it may not conflict with existing
currency laws, and for the further
reason that it would be folly and un-
necessary expense to the government
to establish a new system of banks to
be known as land-loan banks when
existing national banks can do the
work designed, will undertake it only
too gladly, and can do it better. The
president of the bank passes on the
character and %suficiency of collateral
offered.
In order that loans may not be null
tiplied for the purpose Of getting COM
missions regardless of the sufficiency
of collateral offered, national banks
are required to buy 10 per cent OF
each serial bond issue made through
their agency.
If it becomes necessary to sell IN
der mortgage any of all the lands
h~ypothecated in any series, the bank
must guarantee that the land sold
Shall bring the amount due on the
mortgage at time of sale, which re-
Quirement alone would make the bank
officials cautious az to the desirability
and s~uliciency Of his collateral.
Sums loaned under this system will
be refunded in easy payments, with
interest at ) per CEN per annum,
running over a period of 10 years,
when the whole amount. with interest,
will have been paid.
One-tenth of the principal loaned
will annually be paid into a sinking
fund. and here again the bank guar
antees the stability of that sinking