The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-10-23
FARM LOAN BANK BOARD
TO GIVE HEARING HERE
Body VIII SIT in Federal Building
Beg inning at 10 O'Clock
This Morning.
HOW ACT WILL AID FARMERS
Herbert Quick, Member of Board,
Says Farm Prosperity of Country
Has Been Spotted--A Big Mutual
Loan Association.

the agricultural prosperity OF the Uni
ted States uniform and bring direct
or indirect benefits to all the farm
ers of the United States, according
to Herbert Quick, one of the mem
bers of the Federal Farm Loan Board
here today to conduct hearing TO
determine the boundaries of the Fed
eraI Land Bank districts. The hear
ing will begin at 10 o'clock this morn
ing in the United States District
Court room at the Federal building.
At O'Clock the board will be guests
Of the Chamber of Commerce at
luncheon at the Business Mems Club.
The farm prosperity of the country
has been spotted. according to Mr.
Quick. In the regions where land
values are high. private interests have
loaned money at reasonable rates.
but in less favored regions exorbitant
rates have been charged and Mr..
Quick predicts that not only will the
weak spots be built up, but even the
favored spots will get the benefits of
more advantageous loans.
THE first thing to get into the
minds of the people, said Mr.. Quick
lis that the rural credits act Is not
a scheme by which the government
lends money to the farmers but one
by which the farmers and investors
of the United States may constitute
themselves into big. nationwide mu-
tual loan association.
In some parts the farm loan bust
ness has been we'll cared for. There
are locations. like many parts Of New
England, where money Is plentiful
and rates reasonable. Other ioca-
lions, like some parts OF Pennsylvania
and the corn belt, have been we'll
served because land values are stable
and the quality of the land fully un-
derstood. Investors regard these
and. although they may be re-
mote from local supplies of
capital, money is directed there by
reason of the very uniform and high
quality OF the loans and the success
fui and stable character OF agricul-
ture.
Beneficial to FarmcrA
Probably If tho conditions had
seen as favora BILE all over the country
As in these favored regions. there
would be no particular necessity for
the Federal farm loan act. and yet
even in these localities loans have
been made for from three 10 five
years with the necessity OF renewals
and commissions Even IN these re-
gtons the effect of the Federal loan
act on interest rates will probably be
very beneficial to the farmers in bring
ing about a new system Of loans so
far as terms and conditions of pay
laents are concerned Already loan
hanks are making loans in imitation
Of the Federal loan plan. They are
making twenty-yesr loans with small
instaIlments OF the principal TO be
paid with each interest payment so
that the loans VIII be arnortized IN
twenty years. 1t IS safe 10 say that
lay reason OF the Federal loan act
farmers in a few years will find them
selves IN much easier position. They
Will have loans which will run A long
period, slowly paid of by almost i'm
perceptible payments, and they will
possess the privilege OF paying off in
whole or in part almost at their own
will
The greatest benefits of the act,
however. Will not go TO these favored
regions Probably three-fourths OF
the areahle surface OF the United
States consists OF lands uniform in
quality, and which, for one reason or
another, have not attracted investors
in farm mortgages in tho past In
these locations farmers are compelled
TO pay high rates OF interest, burden
some commissions. and have been
getting loans 10 such an extent that
their suTerings have bean -intenss
In other regions. owing to the lack of
development OF the loan business,
farmers have not been able to get
loans except under exceptional cir
cumstances The supply of local mon
ey was insufficient and commercial
banks had all they could do to carry
on legitimate business and were un-
yv,f
OF money to long time farm loans.
These regions suffered and agricul-
furaI development was arrested by
reason OF the failure Of the United
states hitherto to set up a financial
system such as most other govern
ments have set up to serve the farmer.
Need Different System.
TT 10 recognized principle OF fl
nance that farmers need a different
system OF loans and credits than that
which Is adapted to that of other bust
ness. The Federal farm loan act Is
\ great piece of constructive iegisla-
ton. the object of which Is to supply
the special needs of the American
farmer 50 far as long period farm
foans are concerned. III.
III the farmers and investors OF the
United States will energetically enter
upon work of organizing under the
to doubt that every part OF the coun-
try will gradually feel the relief that
comes from an adequate supply of
credit on easy terms. Tho object OF
tho law Is to make 1t possible for any
farmer anywhere In the United States
to borrow money. IL he possesses good
security. up to tho limit OF safety.
when the value OF the property Is
considered. on longtime and easy
terms OF payment. at the lowest rate
of interest which investors will accept,
on perfectly safe and easily salable
bond. The land loan bonds to be used
under the Federal farm loan act viii,
be as safe as government bonds. We
do not know what the rate Of interest
Will be, but we do know that land
loan mortgage associations in Europe
have been able to secure money for
farmers at rates as low as that paid
by the government on government
bonds. If We can gradually approach
this condition 1t will be splendid
thing for the farmers and 1t will fur
nish investors. small and large, with
safe and sound securities in which to
invest their savings and accumula-
tions.
These securities will be free from