Mansfield mirror. (Mansfield, Wright County, Mo.) 1908-1957, 1916-11-02
NO NEED OF q,
" LAND BANK
Public School Funds Can Be-
Loaned to Farmers at
S Per Cent.
A HUGE LEGISLATIVE BLuNDER
States Finances In Such Condition
that Money Needs to Be Boz.
rowed to Start-Lack Of
Experience in Managers.
Carrollton, Mo-, Sept. Z. 1915
Republican State Committee.

Republican State Committee.
st. Louis. Mo.
Gentlemen-Replying to your favor
OF the 9Th inst, in relation to the
Gardner Land Bank Bill, will say that
this is such a huge legislative blum.
der that 1t would be extremely diff
cult to find anything Of merit In the
entire bill.
II there v e was any occasion for
such a system Of rural credit. the new
federal law is supposed to supply the
demand. But l am of the opinion that
there Is no occasion for any such law
either state or federal. To support
this view l will refer briefly to local
conditions as they exist.
The public school fund Of this coun-
ty now amounts to $117.301.27, which
Is loaned to the farmers at s per cent
without any commission, with the
privilege Of paying any or all Of the
principal at any time or keeping 1t as
long as. desired. To furnish an equal
amount to each county in the state tho
Land Bank would have to control
more than $4,000 900. A number Of,
life insurance companies are making
farm loans here at 5 per cent and q
small commission. The current rate
Of interest for local capitalists is g.
per cent. At these rates there is an
abundance of capital to meet all de-
mands. except those where from rs to
100 per cent of the value Of the land
Is wanted. The demand for these ex-
cessive loans is generally met by local
capitalists.
Then in what respect would the pro-
posed land bank fill a long felt want?
The only possible excuse Is that 1t
would furnish money at q lower rate
Of interest. Is that true? Let US In,
vestigate a little further. II, Is pro-
posed to make these farm loans a 49,
per cent, with an additional " of II
per cent for the reserve FUND, or a.
total of 4.8 per cent. Let us compare
this with the highest rate obtained
here. AS stated above. the local CAPT.
talist receives 6 per cent. It IL pro-
posed to exempt the land bank loans
from all forms Of taxation. At the
present time the total tar levy here
for all purposes is 8 1.3 per cent, and
real estate notes are assessed at so
per cent Of their face value, which Isl
equivalent to / 20 per cent taxes.
Hence it will be seen that the local
capitalist is realizing 4 1-3 per cent
on his money. II the object, then, is
to furnish money to the farmer at q
low rate Of. interest why not pass .,
law exempting all farm loans from
taxation? This would doubtless bring
abodt the desired result. But the farm
er would at once see that this was a
single tax scheme under q. different,
name, because he would know that
the taxes lost by such exemptions
would be levied and collected on his
land. No; you could not fool the
farmer on that kind Of a scheme. But
in reality that is just what the Gard
ner land bank bill proposes, and the
farmers will doubtless get their eyes
OPcA OSAOAO Su0 S0AuS ~ OVcTs e
It IL proposed to appropriate
100000 out Of the state treasury to
start this bank, but the finances of
the state happen to be In the same con-
dition that my finances are at the
present time. and II the bill becomes
a law the state will have to borrow
the money to start with.
It Is proposed to make the Gov
ernor. Attorneys General, Secretary of
State. State Treasurer and State Audi
tor the board Of governors of this
bank. Who can imagine anything
more absurd7 The bank would soon
be bankrupt, Just like the state is now.
It is proposed to pay all expenses.
salaries. ETC., out Of " Of / per cent
and create a reserve sufficient to ulti.
mately pay back to the state the
amount originally appropriated Those
who have had experience In the farm
loan business know that this cannot
be done on " Of / per cent
Many other reasons might be given,
why the scheme would prove q failure.
but that's enough.
Yours very truly.