The Birmingham age-herald., 1915-02-05
LETTERS TO EDITOR
Cheap Money for Farmers

Much has been written and said about arranging for farmers to obtain long time loans at a low rate of interest The fed
 eral government sent a committee to Europe to investigate plans in vogue on the other side; still no plan has been formulated for relief to American farm CTS. and il seems we are just as far from any arrangement by the federal government to provide this help for the farmer as we were in the beginning of the discussion of this vital matter to our economic welfare. It does not appear practicable for the federal government to provide a way which could operate successfully in all parts of the United States, and it is not at all probable. in my judgment, that the Congress will
 ever enact a law to give its credit or lend money to the American farmers. We might well look to some other source for relief, pay no further atten- ton to this useless discussion in Congress over this matter and turn to a more practicable plan, which may be put in operation in our state. It has lately been suggested that Alabama lend it's credit or lend money to the farmers of the state al d ioN Ialt Ol interest,"
 This plan could be made safe both to the state and to the lender, but there would be objection to this plan for the state to engage in business of this kind and an amendment to the constitution of Alabama would have to be submitted to vote of the people, which could not
 be arranged in the near future and prob ably would not carry.
 One of the ablest finaneiers of Ala hama ha Gta1a r,1D wi fc ticable, founded on sound business prin- ciples, and may be quickly put into oper- ation. It is this: That we have a law enacted to exempt from taxation banks organized to lend money on mortgages only on farm lands and other real es- tate, at not exceeding, say, 5 per cent. payable annually. The loans to be on 20-year amortization plan. one-twentieth of the principal payable annually, which may be extended at option of the mort gagee. Such banks should be prohibited from lending money on notes of hiAnd
 buying commercial paper of any kind
 selling exchange and from receiving in- dividual deposits. Restricted in this way, such banks could not interfere with the business of other banks, which do pay taxes, and transact a general banking business. The fnancier quoted says if such law should be enacted we would
 have no trouble to get an abundance of money in reach of our farmers at low rate of interest. It is high time we were getting something done for relief of our farmers. The boil weevil is now in over half of the state-cotton Is low in price. and our farmers must raise more live stock and engage in diversified agricul- ture if they hope to pull themselves out of the hole. But how in the thunder can a farmer stock his farm with breeding animals fence his lands and erect needed buildings, build silos, etc., if he has no money and can't borrow any? Some of them might borrow little money from our banks at per cent or more, on 12 months notes. but the banker might refuse to renew the loan at the end of the year, and the farmer would be forced to sell his live stock. perhaps at a loss
 to repay the loan. No man could afford to embark in a business under such con ditions. All this windjamming about the farmer changing his methods from cotton to diversified crops. live stock raising. etc, is not worth flip unless some way is provided for the farmer to obtain long term loans at low rate of interest
 We are putting tho cart before the horse in this hurrah to help the farmer and making ourselves appear impracti- cacal in the eyes of sensible business men,
 Why not get a law enacted at once whereby the farmer may have a chance to obtain this long term cheap money.
 bank exempt from taxation could lend money at per cent and, having no taxes to pay, could make about as much as if the money were loaned at Sl per cent, and the bank had to pay state. county and city taxes.
 There can be no valid objection to such law, and we should have 1t en- acted at once. Try it out, and if this does not put cheap money in reach of our farmers, we can try some other plan. | Help, to come from the federal or state treasury, or from farmers cooperative plan Is too remote to be even considered at present. Let's have action and less talk on this important matter
 It's matter that affects every bus- !, ness and profession in the state of Ala l bama, and deserves the thought of every citizen who may give helping hand. | Give your views in an editorial. Tfl the press of the state would call atten- l ton to this vital matter some feasible plan might be speedily put into operation. Very truly W. ]. MCAIN. l
 Livingston, Ala. February 1. 1915.