New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-23
Putting the Man
on His Own Land
What the New Federal Farm
Loan Bank Will Do for the
Little Agriculturist
BY p. w. GOEBEL,

Note-The dunil Of the neW Fed
eral Farm Loan Bank to the agrt-
culturist withom capital, or Nth q
rery little. was set forth IN uery
simple manner By p. ". Goebel,
president of the American Bankers
Association, at the recent annual
convention in Kansas City. The
Farm Loan Bureau at Washington
has adopted his statement and re-
published it for general Information.
1t follows:
heard several gentlemen say this
morning: "But how are you going to
advance the interests OF the tenant
farmer that has not got the so per
cent saved up to buy his land?" Why,
if the tenant is the right kind Of man
there will be no trouble whatever.
And here the personal equation comes
in. The government must require
absolutely the same maximum re-
quirements from everybody that does
business with these banks, and the
local banker will take into considera.
tion the personal equation Of a man
wanting to buy the land, and as n
banker would not hesitate TO say
that | would loan freely on second
mortgages. ] would not in a CONNER
cal bank, but in trust company or
investment bank | would lend freely
OF second mortgages so long as
could see that the interest and the
anortized payment on the first mort
gage and the interest on the second
mortgage and taxes and upkeep of the
lana would still be less than the
rental value of the land.
We will say a young man who
has worked for farmer for a num-
Ter of years or man of middle are
whom have known for years has
rented a place, comes to me, and he
says: az have $1,000, and have two
span Of horses and some cows and
some sows-enough reasonably to
stock eighty acres of land. ! have got
to pay $50 an acre for the land.
can get a loan through the National
Farm Loan Association of Stanton
Township for $4,000. Will you loan
me the other .l,00O?"
Now, it is very easy proposition
TO figure it out. | will figure that on
the first mortgage of $4,000 he will
pay sl20 interest at per cent. ! am
figuring now on the maximum. He
will pay $50 on the amortization fund
Now, loan him the $1,000 at per
cent, If you please. He will pay me
$40, ana | will figure that his taxes
cost him $50, which makes total of
$500.
Now. that eighty acres Of land, if ne
rented it. would cost him anywhere
from 1925 to $500 year rental. 1t
goes without saying that he will take
moro interest in that piece of land as
an owner than as renter. He will
take better care of it and improve it.
II will be improved rather than de-
Perforated. 1t does not take a great
stretch of imagination to see that this
man with the $1,000 ! loaned him can
pay on an average of 500 year on
the principal. In other words, he can
retire the $1,000 | am loaning him in
ten years. Then he will simply have a
proposition that with any intelligent
work at all he will absolutely make
living, and the small sum he pays year
ly to retire his loan finally will hardly
be taken into consideration. In fact, it
is my opinion-and what | am saying
to you, gentlemen, is simply based on
years and years of observation of the
farmer and continuous financial and
other business | have had with him
with any intelligent work he will have
something that will make him an abso-
lrtely sure living for good sized
family.
The result Of these longtime loans
will also be that more of the income
from the farm can be placed into
equipment for the farm-equipment not
only to bring larger returns, in dollars,
to the farmer, but that will make the
family feel like they want to stay there.
To my notion. the greatest lure Of the
city is the fact that these farmers
wives and daughters come into the city
to visit friends, perhaps. who have
modern equipment in their houses. IL
appeals TO them more strongly than
anything else and makes them more
dissatisfied with farm life than any
thing else. Now, with the bugaboo that
the mortgage is going to como due in
two or three years. don't know how
! am going TO be able TO renew it, or
don't know what have TO pay; there
may BIO stagnation in land values
with that bugaboo removed, why, any
one who has the welfare OF the farmer
at heart can readily advise him: "Now
put some money into your house and
make it modern, so you can make your
family feel that they have the same
chances for comfort and pleasure as
the average laborer has in the city,"