Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1916-09-13
CASH FOR THE FARMER.
BY Henry F. Hollis


Middle West. The soil is heavy and
black, but it has been exhausted by
process Of cropping which is more
like mining than farming. Everything
has been taken from it. Nothing has
been restored. That is why the own
er, grown rich from soil exhaustion,
has sold out and moved to town.
The bare purchase Of the farm has
taken nearly all of Browns savings.
The buildings leak; fences are down;
machinery is lacking; some OF the
land needs draining; the rest needs
fertilizer.
Browns neighbor is prosperous. He
has treated his land like a farm, not
like mine. He has used good seed,
bought good stock, laid drain pipes,
and purchased commercial fertilizer
by the ton. At the end of the year his
barns are full and his crops are safe
from the weather, while Browns
crops are meager, and further reduc-
ed by frequent wettings.
1t is plain that Brown needs cash
capital, but he has been brought up
to save, not to borrow. He looks up
on mortgage as disgrace. The on
ly time he borrowed, he was unable
to pay at maturity. He was charged
commission and an extortionate rate
OF interest for renewal. That loan
was burden for years, and always
nightmare.
Then Browns cousin Joe comes to
visit Joe is a storekeeper in an east
ern city, doing business largely on
borrowed capital He tells John that
every prosperous merchant and man
utacturer borroWs money. He asks
John what he supposes banks are for
II 1t is disgrace to borrow.
Brown is half convinced. He gath
ers courage one day to go into the
nearest bank. He feels shabby and
out of place in the midst OF so much
marble, brass and mahogany. His
courage oozes, his voice shakes, he
is clearly over-awed, and the bank Of
fetal decides that he is a cheap fel-
low.
Brown is glad to escape with his
hat. He scarcely recalls why his loan
is refused, but there was talk of dear
money, and the risk of tying demand
deposits up in long term loans. The
know Brown or his farm
And then Browns friend Robinson
turns up one day, fresh from attend
ance on hearing by the Federal Farm
Loan Board, recently appointed by
President Wilson under the Rural
Credits bill. The Board is touring the
country to ascertain the farm loan
needs of the various districts. Browns
intQraSf &c &c to
which he is entitled as a farmer and
an American He writes to the Fed
eral Farm Loan Board at Washington,
and this is what he learns:
The United States will shortly be
divided into twelve Land Bank dis
tricts, each containing Federal land
bank. One Of these will be establish
ed in city not far from Brown, for
the sole object to lOaning money to
farmers for productive purposes on
the security Of their farms. The far
mer will borrow, not as a favor, but
as right.
Every borrower will take per cent
. Of his loan in stock, and thereby be-
S come partner in the enterprise. He
q will get has money at cost. Any prof
' it will be returned to him in divi-
dends. The interest rate cannot ex-
coed per cent. The law fixes that.
But the rate may be as much lower
n as cheap money and good manage
Y ment will warrant.
t Brown learns that the land bank
y will not deal directly with him, but
t through national farm loan associa.
e ton composed Of ten farmers who
wish to borrow. So he puts in a few
evenings visiting his neighbors. He
finds nine of them who need cash
e capital. He invites them to a meet.
r ing in his kitchen.
q Brown and his friends organize a
IL farm loan association. From the
Farm Loan Board they receive cir.
). culars and blanks The benefits are
r. so great and the plan so simple that
t. they would be suspicious if the papers
It had come from Wall Street rather
than from the Government.
s They elect officers, fill out the
g blanks, sign their names, giving the
d amount of money required by each
e and send their application to the land
e bank of their district The land bank
\. sends an agent to investigate. He
makes a favorable report and they re
O. ceive charter covering their county
st Brown is made the Secretary-Treas
0. urer.
D. Brown receives with the charter
b. blanks for mortgages and appraisals
n The loan committee Of his association
re fills out an appraisal for each loan
S. Brown forwards these to the lane
bank The land bank appraiser ex
or amines each farm and recommends
y the loan. The mortgage papers are
t. then executed and forwarded to the
Of land bank.
st The money is sent back to Brown
N for distribution among the borrowers
le Thereafter he collects and forwards
to the land tank instalment payments
on each loan as they become due. Fol
this service he receives a small fee.
Browns loan may run for any per
1od from to 40 years. With eacl
payment Of interest a certain fixet
percentage Of the principal is paid
II the interest rate is per cent, ant
he pays in l per cent yearly on tn,
principal, the whole debt will be pail
out in &c years, and this clearing O
the mortgage will result from a tota
payment each year Of per cent O
the original loan, covering interest
expenses and installments on princi
pal.
Five per cent of Browns loan come
to him in stock Of his association. l
the enterprise makes earnings, Brow
will get his share in dividends on hi
stock. When his loan is paid in full
he rocaivas 1OO nor cant IN hic ctoo1