The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-12-31
The State, 9th.

lumDld GOSCnlaStSESIup'
The State, 27th
Representative Lever reached Col
lumbia from Washington yesterday Itj
is intimated that he has come to take
a final look over tle situation in Co.
lumbia before making his recommen-
dation to the president as to the post
mastership. AS to this he would say
only:
81 presume shall hear something
of the postmastership for Columbia i'll
my short stay in the city. Those who
think patronage is the peculiar JOY OF
the congressman are badly mistaken.
[ have found it a burden and an ag-
graaation to be borne philosophically
rather than to be sought after as an
element of strength"
Representative Lever, since the first
week in November, has been engaged
with the joint committee of the house
and senate, on which he is one of the
house appointees, in an effort to devise
a workable plan of rural credits for the
country. The particular phase Of the
rural credits subject with which Mr..
Levers subcommittee has had to do
is that of farm land credits. The sub
committee substantially agreed last
Friday to bill which will go before
the full committee one week from to-
day.
Rural Credits Legislation.
My work on the joint committee
sirce early in November has been ex-
acting, but l have found it interest
ing Mr.. Lever said. THAT legisla-
ton which will enable the farmer to
borrow money at a low rate of in
terest, the principal repayable in in
staMments, is an absolute necessity, is
proved by the Overwhelming testimony
of all students of farm econonics, as
we'll as by study of the results of Eu-
ropean systems, some of which have
been in operations as long as $50
years.
"The bill which will be laid before
the full committee provides for we'll
worked out plan, nationwide in its
scope, for farm mortgage credits un-
der strict federal supervision. The
management of the u district land
banks, capitalized at $5OO,OOO each,
this stock to be subscribed out of funds
in the treasury of the United States,
unless otherwise subscribed within so
days from the passage of the acF, will
be under the direction OF federal
farm loan board, appointed by the
president of the United States. The
initial capital stock of the y banks
will amount to $6,OOO,O00, with i'm
mediate Ioaning capacity of s120,0O0,-
900, which will be increased in the
ratio of 20 to l as borrowers come into
the system.
"These regional banks will do busi-
ness with local associations Of farm
borrowers, organizing under federal
charters, and all applications for loans
are approved and recommended by
such local organizations 10 the land
bank. The rate Of interest to the
farmer will be the interest at which
the bonds will sell in tne open market,
plus 1 per cent. 1t is thought tina.
the security back of the bonds has
been made so strict that such bonds
will readily sell at. 4 per cent, prob
ably less, and this means that the in
{erest charged to the farmer would
be in the neighborhood Of 5 per cent,
The amount which the farmer is to-
pay upon the principal each year is
left optional with the borrower, except
that the maximum period for loan
is fixed al Sc years. Provision is made
permitting land banks to accept time
deposits and in certain eXigencies to
operate through special agencies. Such
time deposits may be loaned on shor
time mortgages.
Talks of preparedness.
I'VE nave attempted to adapt to the
needs and conditions of this country
the best features of the best European
systems Of rural credits and believe
that the legislation which will finally
result from cur efforts will provide al
plan which will be both practical in
operation and of immense benefit in re-
suits; while the country is in furor
over the proposition of military pre-
paredness, it is we'll for some OF us
at least not to overlook the matter OF
industrial. commercial and especially