The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1916-08-03
RELIEF FOR
THE FAR M Err

THE FARMER
Thousands of farmers throughout
the country whose work in the past
has been reduced to drudgery and
whose children have been held back
from the proper educational advan.
tages because of the struggle he was
making to meet five year mortgage
on the farm will receive with glad.
ness the news Of the passage of the
federal farm loan bill generally known
as the, rural credits act. 1t Is pre-
dicted that this legislation will be
immensely beneficial because 1t puts
the farmer UPON an equality with all
others VIII have equally good but no
better assets. This has long been
the farmers handicap because he has
been paying an exhorbitant rate OF
interest, u rate which will average
s 1-2 per cent; rate 25 per cent high
er than that paid by any other class
Of buyers.
in the past the farmer has usually
borrowed ON mortgage and for five
years so that his whole loan came
due at once Under the new bill the
farmer will borrow for forty years
il so desired and his loan will be-
come due in many small installments.
More than this, he will not pay any
more than 6 per cent interest on his
loan.
The farmer in spite of the difficult
condition under which he was COM
PEELED to make his loan was an ex-
tensive borrower. AS may be inferred
from the fact that during President
Tait's adm nistration the farms of
the nation carried a mortgage indebt'
edness OF 81. $3.50. 100000 on which they
paid an annual interest of more than
$3.50, 000.0 00,. II is a fact that no man
ufacturer or merchant could possibly
do business successfully today IL the
obstacles in the way of securing cred.
It and the interests exacted OF him
for loans were as great as In the case
OF the farmer.
The law that will remedy this was
passed by a very large majority in
both houses. Only ten votes were reg
istered against It in the house and
five In the Senate. The purpose of
this legislation has been endorsed in
the platforms OF all parties and the
press OF the country welcomes the
new law as thoroughly sound in prin'
ciples and predicts that 1t will be
perfected gradually In practice. The
loan banks presided over by federal
board of tye members and provides
for loan association. The farmer Dor
rows from the bank through the as.
ISOLATION on mortgages running from
five to forty years. These mortgages
are used by the land banks as the
basis for farm bonds which are so
drawn as to take rank with railroad
or any other bonds as a means OF
safe quickly realizeable investment,
In other words this new law makes
liquid the enormous amount OF cap
ital now locked up in the farm lands
OF America.
This law will bring together the
small farmer who wants to borrow
money and the small investor who has
some savings to be loaned on reli.
able secuhity. The American Agricul-
turist New York" says 1t will be
beneficial according to the extent to
which present or would be farmers
take advantage of the opportunities of.
fered them. This influential organ
appeals to both the farmers and the
investor to make the new system a
success. OF the federal farm bonds
It says, Secured by first mortgages
on our well managed farms they
should gradually become a most popu.
lar investment for larger sums or
small. Every individual should aim
to own federal farm loan bond II
only to the amount OF $500. Let
these farm bonds become the peoples
saving bank. They are tax free,
safe, should be quickly saleeble when