Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1915-11-27

November, 1918

tural resources In many instances
private and commercial banks pur-
chase the securities of land-mortgage
associations. Experience has demon
Strated that such land-mOrtgage bonds
are liquid assets.
1.-The systems of land title reg1stra-
ton in countries possessing such mort
gage institutions practically prevent
dispute of title upon mortgaged land-
Provisions are also generally a1ordeo
these mortgage institutions which elm
mate undue legal delays in the recov-
cry of loans placed with default1ns
borrowers. Savings and trust funds
are frequently invested in securities
of such mortgage institutions under
sanction of law. Loans up to nifty
or even sixty-six per cent are made on
lands of dependable value and are con
sidered safe and conservative and com
pare favorably with provincial and gov
eminent bonds.
'eThe American people are too free
and Independent, and therefore, I Sc
riously question the adaptability of any
such system to our conditions in this
country, cooperation being the found
alton of the foreign loan system, while
cooperation among our farmers has
been tried often, and, according to my
observations, to no great success. In
Germany every thirteenth inhabitant
is a member of one of these affiliated
associations, and while all rural banks
accept deposits from everyone, they
will only lend to members who are
properly endorsed by other members.
Savings accounts in both France and
Germany far outnumber those in this
country, and the rate of interest paid
is about three per cent. 1t is easy to
see the source of the money loaned to
the European farmer, while in this
country, with its vast opportunities
for speculation, our people, in large
measure, prefer to do their own invest
ing in land where the possibility of
large returns is so attractive.
MANY Americans have for years ad-
vocated the making of farm loans by
the government, which is a fallacy. The
whole plan of government farm loans
or government guaranty of farm loans,
as in the case of the Saskatchewan idea,
eventually will resolve itself into this;
No government can make loans SIM
ply because it is a government. No
government can rise superior to the
economic laws which govern the value
of money and no government can fix
an interest rate which will apply on
all farm lands alike. To attempt to
do this would be to invite disaster.
The cry for cheap money for the
farmers is largely one by those who
do not understand the situation. Dur
ing the last year it is a fact that farm
ers in Illinois have been able to Dor
row money through the life insurance
companies at lower rate than the big
business men of Chicago have been
able to secure it. The only reason why
more thinly settled sections havo not
been able to do this is that the local
conditions do not warrant it, and this
would be the same whether the gov
eminent or a private individual at
tempted to make the loans.
TT is my opinion that if we are to
inaugurate a successful system of farm
credit, we should try to forget the
methods employed by credit associa-
lions in Europe. What we should do
is to try to comprehend the principles
employed and seek to adapt them to
American ideals, customs and govern
mental methods.
what is wanted is some method by
which young men who wish to become