The De Soto County news. [volume] (Arcadia, Fla.) 1898-1924, 1916-08-31
THE EARN LOAN ACT


Post has an editorial on the
above interesting topic that will
be worth your while to read. The
Post says:
Next to the establishment of
the federal reserve system, which
has reduced to a minimum the
danger of sudden financial de-
preston, the federal farm loan
act, popularity called the rural
credit law, is the most momen.
tous piece of financial legislation
written upon the statute books
in the past score of years.
at is doubtful whether the
farmers as vet realize the full
import of this new law. just as
the new banking and currency
system gives the business men of
the nation a more elastic curren.
cy and greater facilities of cred
it, so the rural credit act extends
to the farmers of the country the
same quick credit that is now en-
jOyed by the manufacturers and
other business men.
"The essence Of the new rural
credit law is in the establishment
Of a uniform rate of interest FOR
the farmers. 1t will not help a
lazy or shiftless farmer, but il
will remove at once the hamper
ing influences that halted the
progress of men who have labor.
ed ceaselessly to get rid Of debt
in the operation of small tracts
of land. B -..'- ...-
NO longer will there be any
gOuging of the farmers. no mat
ter where they may be located.
No federal land bank is permit
ted to charge more than 6 per
cent. per annum on its farm
mortgage loans, and If one of
these banks pays only per cent,
on an issue of bonds, it can not
charge more than ) per cent. for
the next farm loans it makes.
Thus if those who now invest
their money in farm mortgage
bonds receive only 4 per cent. on
their investment, they will have
the satisfaction Of knowing that
the farmer is paying only ) per
cent. -. ~..~
Farm lands, which are the
very keystone of the nations
prosperity. hitherto have not
been considered a very good in
vestment by the average citizen.
To attract money to the farm
loan field, however, the new law
provides a method whereby those
who have money to lend can fn1
safe investments in the form Of
debentures or bonds of small and
large denominations, issued by
the banks and based on the secu.
rity Of mortgages on farm lands
"Not only a method, but IN in
ducement, is thus offered for in
vestments in agriculture.
"Much will depend upon the
initiative shown by the farmers
in the development of
this new system. In its general
effects it is not unlike the build
ing and loan associations which
have grown up in all the large
American cities, and which have
enabled so many working people
to acquire their own homes. The
associations which the farmers
will form, under the new system,
virtually will dominate the
twelve land banks which are to
be established. They will pass
upon the reputation and reliabil.
ity of their own members. There
will be a new community of in
terest among the farmers of the
country, and there should be an
immediate strengthening and
improvement in the agricultural
resources of the nation in add.
tion to the improvement in the
condition of the individual farm.
ers. - ~
"In writing this new law upon
the statute books congress has
performed a service not only to
the farmers themselves, but TO
the whole country, whose pros
perity is based in such large
measure upon its agricultural re.
sources"