Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1916-09-08
MANY WILL BIZ DIsAPpoINTED


Too much was expected Of the ru-
raj credits law recently passed. Many
people were looking for Il to do too
much. and who therefore expected
the impossible. Arrangements are
now being made to pmt the rural
credits law into effect and 1t win soon
be discovered what benefits are 20
be derived from II, and what benefits
are denied by Il that should be grant
ed Theories are well enough. but the
most beautiful theory in the world
sometimes fails when subjected to
the actual test Of experience. What
works theoretically without friction
fails 20 work practically. II win bene-
fit landowners BY giving them the
use Of money st q lower rate OF in
terest than they could obtain it for
formerly, and II win be q benefit
to certain banks. that will obtain
money from the government at 3
lower rate Of interest than the PEI
cent which win be charged for farm
loans. There Is some complaint be
cause the government did not dea
directly with the rural borrowers
cutting ont the middleman, which
in this instance was a particular
bank. but such , course was obvious
~ impossible The machinery neees
sary 70 deal directly with borrowers
would be too elaborate and expen
sive. and the government was com
PEELED TO make use Of financial insti.
tutions already established, thai
knew the sOlvency Of the people OF
their constituency. and their ability
to pay back loans. Banks that handle
government money cannot be reason
ably expected to do 80 unless paid
for the service. and 20 long as the
farmer obtains funds at 8 per cent
interest he has NO cause for COM
plant. Another source OF disappoint-
ment. and no doubt Il will prove Of
dissatisfaction. i the provision which
authorizes loans to be made only TO
landowners OF landlords. This cuts
out tenant farmers and farm labor
era. and many OF these think thai
they are entitled 70 as much consfd-
Grafton as are the landowners. As 8
matter Of fact they are. but the gov
ernment must follow established and
prudent business rules. and bankers
would not lend money to tenant farm
eFa without security. and farm labor
erB would find Il even mere dificnla
to borrow. The fact that landowners
can borrow money at a low rate Of
interest will be Of great benefit to
them. II will enhance the value of
their land and make then more indie
pendent In corresponding manner
the tenant farmer and the farm Ia
borer or any one else who desires
TO purchase farm lands will find him
self at disadvantage His credit mas
not been improved. and 1t will be no
easier for him to obtain money than
Il vas before. while the price OF land
will be going mp. This. II, ID feared,
win accentuate the evils OF landlord
ism. that are being 30 acnteIy felt
already in many Of the states. II the
eifect Of this new law will be to en-
tablish q Iand-hoiding class and give
IL q firmer hold upon land values It
Is likely to increase the cleavage be-
TWEEN the landed and the landIess, :
condition OF affairs which Il not plea
sing to contemplate in : democratic
country. However. II the law proves
unwise or unavoidable. Il can be
either amended or repealed. lit
gives one class Of citizens an advan-
tage over al other classes it viii be
condemned as class legislation. The
actual test must be made by giving
Il fair trial. because no amount Of
theorising proves anything.-Idaho
Falls Register.