The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1916-10-20
OCTOBER II, 1915

Courier Printing Company
Grandin, Mo.
My Dear Hammond:
Have before m your favor asking for light o n the subject of GsrdusH
Land Bank Bill and will try to respond
and f f not s' exactly a. " in D harmony as Ds'' wherein Rs !" IS the the di4isuiyP Al the time thai
the bill was before the legislature some Of the learned d msmo'T s S.t IN
ton prohibiting the grant of public money and suggested that said cCnst-
I Ia4pB Ba p 'T iss~ls s answered a a the tns that he one million dollars would
con continue s 70 ben be n the .I possession ossa N. and %.n IGng@ o. q 4. ' co9 state a@d T TS. s nSs
Land Bank being a part Of the State Government 4 was thought i Toue
and would always be subject 70 the control Of the State For that =. reason on
was passed and signed by the Governor. But some Of the lawyers still
looked wise and expressed doubts
Attention was also called to Art x Sec ? prohibiting exemption from
taxation The learned lawyers suggested that the proposed exemption o.
bonds in the Land Bank Bill was contrary to sad proys,0n' was AMwe
ed that the farmer paid taxes on the land and that furthermore exempuol11
Of the sam nature were already allowed by law But the '"u"0
Attention was also called by the followers of Blackstone to Art XII
Sec. 26 Of the Constitution covering the creation of banks It vas thought
land bank of this character, which was not one {" issue
To satisfy everybody and SO as to clear all question, a eon.atuaona,
amendment has been submitted by initiative petition signed by more tmn
s explain H the legal difficulty
You ask, win the Gardner Land Bank Bill If carried at III; general
election be put in effect in case the State administration should shaEgs TO
Republican, To such a question ! car only only ap .E ,b Hs. i ms i n.% fr
the land bank act and if he feels that way about II he would undoubtedly me
light sotS good for the people Of he State to put such an important trust
II bis hands !, j isl The e sf p reinstatement ct mankind that he best iu'nl' = truss
You write, please de6net in a brief way how loans are to be repaid
n, mea o ON a IS IS year bassf
Tb. n,ncioIe and effect Of amortization il, well worth considering BY
the interest and all other charges during the tam Of the loan II Is ts
interest for many years, the principal debt still staTss him in the face la
tnSesisations and numerous other little expenses have been incurred, to
, to a. 2. s1 Sf al . % naSS S%o og years .a s. the %'s oas g i iosa p IS still If u @aasiD- go ~
Under the amortization plan Of the State Land Bank this ha5rowi'g
state Of affairs is overcome and avoided The trials and Gbuahons OK
renewal at the bank or from some private individual are lone away With With
The borrower makes up his mno N aovance as 70 ms 1850 NJ III
he wants for paying of the loan and arranges his payments accordingly
Under the provisions of the Land Bank Acth can borrow for FIVE years
o twenty-five years or any intermediate period. Under the plan which rs
advocated a total payment OF 64 per cent ot a = year oar Is pMd nnuah
expenses of the loan and a part of the principal SO mat at the ue Of hnaL
payment Of the last GA per cent OF the loan the total deb IS completely
To illustrate: Smith seeks to borrow $4,000 and wants Is years IN
which to pay it of, principal, interest and all charges OF every eharaewr
manager immediately hgWes up an INC mNW"N" @ go sn-nau.
with II and same will show that the borrower must pay SoO annually
ment will wipe out the total debt at the end Of the loan period OF course.
the same principle will applyfor $1,000 or $4,000 as borrowed It's very
The merchant in the transaction of mis- daily business turns over his
capital many times and often bouows from Peter to pay Paul IT he has
meet II from the resources of his business But the farmer relies upon
e his crop returns and the crops may fail once twice three INES m ven
o.On ea Z. y fs1mer All Of which Of course will make il impossible for him
ID 10 meet his note and he has not the resources OF the merchant to tai
3 TIL, orineine Of amortization. that is, paying the principal loan along
degree in European countries, especially in Germany, Belgium and lreanL
s II wa, found in those countries that the system Of small payments t@ a
IS LONG term met the conditions and requirements Of the farmers and e
system was put into effect many years ago
Our system of 3 to year loans is a burden instead Of a relief to TIE
farmer Il simply brings him into gfeat difficulty and offers him up as a
n lamb to be shearsd by the money shepherds who are always looking ' e.
Id renewals al al exrayagant rate Of interest and at oppressive bonuses u
,e MICH, he mentioned here that loans to farmers in Germany and Sweden
S. generally run 56H years, in Switzerland, 81 years IN Denmark oV years
and they run as high and as long as osH years IN ireland M - years
The plan and p!ncpl. Of amortization culiyate' thrift t. s. IN o the min
ss Of the farmer and gives him the opportunity e work GU. as own SAW
8 ton without excessive burdens and along lines o ms " ehoee ana sweo
e . i trust that foregoing statement win somewhat char the brush Ri
T. for campaign purposes our adversary will continue to eoniure up other evils
on doubts and fears until the hnal victory 8Hpi
am Nth highest regards
SmeueJ JV0'i