The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-01-13


Mr. Goebel's subject was Rural
C,redits" and he said some system OF
long time loans should be evolved
which ould encourage renters to buy
farms. and thus do away with the
tenant question, which, according 10
Mr.. Goebel, is the real Prooleih u
rural credits"
"This system of renting is the great
EST menace to the prosperity or the
state" continued Mr. Goebel ana
must be changed In my opinion the
hest Dlau is a full co-partnerSh1p be
tween landlord and tenant. The credit
of this partnership will be as good as
that of the owner. Under this plan
the tenant would take a personal IN
terest and develop his desire to own
fafm. ,-
pThe tendency of rates of interest
charged by Kansas banks is downward
and has decreased 1 y per cent IN the
last five years, and is no higher TO
the farmer than to the commercial and
influstrial interest. the ability to repay
beng equal The Federal Reserve
Bank system is bound to have ten
de4hcy to lower and stabilize rates ana
farm paper is rather favored by the
syAtem. In my opinion, very low
rate of interest is almost, if not quite
asTdangerous as a high rate. The low
rate almost invariably begets specula-
tin, - $40, or.a,+. 10 must
better
strive to create conditions which viii
moi make it easier for farmers to get
into debt, but to make it easier ana
stlfer for them to pay debts created
foe constructive. and productive pur-
poses This can be brought about only
by@ education and intelligent mutual
desperation. Every township in the
state should have its farmers cooper
atkve society for marketing farm prod
utfs. improving live stock, encouraging
RI he
raise to maturity, discouraSinS specu-
lative feeding and urging members to
build fireproof granaries of the pest
patterns, in this way realizing the
prpfit which generally comes from
st9ring grain, instead of allowing the
grain dealers to get all of it.
Kansas state Land Bank.
Gin this connection, let me outline
a plan for. Kansas state land BANK
which will be more simple and less
exbensiVe to operate and which Will
make it possible to offer as low u rate
OF, interest as the proposed federal
land banks.
&According to my plan, the state
legislature would pass an ena bling act
for the organization of one land bank
with a capital stock of say one mil
lion dollars, one-half to be paid in
wNhin six months after its organiza-
tidn, the remainder, in installments of
10Eper cent as needed. Let this stock
baaoffered to the state banks and the
Incorporated investment companies OF
Kansas in proportion to their paid up
caRital and surplus. Let it cOnfine its
blseineSS to the making of loans on
farms occupied and cultivated by the
owners, either on straight payment or
uron the amortization plan; straight
logns to be made for not less than five
Years nor longer than fifteen years
With the privilege of partial payment
att the end of any year after three
years. Amortization loans could be
H;rde for a period up to thirty-fivC
yeRrs. The French syStel of amOrti-
za41on should be used, where leve
payments will pay interest and extin-
gJish the principal of the loan. The
auaount loaned should be limited to 81
per cent of the valuation of the LAND
for straight loans and 65 per cen
for amortization loans on not Il
exceed so acres, and 5 5 per cent OF
loans on over 80 acres and not to eX
ce&d the maximum number OF acre:
uRHn which loans may be made. A:
tfFls would be an institution for tn,
net be made on more than 200 acre:
iIHthe eastern half of the state and no
tor exceed $40 acres in the western
half Applications for loans SHOULD
bes made through stockholding banks
and investment companies located il
the vicinity of the land offered as Sc
c0rity and no commission should b.
Charged
E'The ability to procure a loan run
mig fifteen years, without renewal o
payment of commissions should en-
caurage many farmers who are nov
renters TO purchase small farms AM
iqens for such purposes should be en-
Outraged
Pin conclusion. l desire to say tina
whatever system of rural credits W
may evolve, let not forget tina
debts must eventually be paid, and il
oder to pay debts we must either sci
A. less hal