The Johnson City comet. (Johnson City, Tenn.) 1916-1917, 1916-08-31
RURAL CREDITS GIVES
CASH FOR THE FARMER
BY Henry +. Hollis, United States
Senator from New Hampshire, and
Author of Rural Credits Law.

Senator from New Hampshire, and
Author OF Rural Credits Law.
John Brown lives on farm in the
Middle West The soil is heavy and
black, but it has been exhausted by
a process of cropping which is more
like mining than farming. Every
thing has been taken from it. Moth
ing has been restored. That is why
the owner, grown rich from soil eX-
haustion, 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 tie
land needs draining; the rest needs
fertilizer.
Browns neighbor is prosperous. he
has treated his land like farm, not
ike a mine. He has used good seed,
bought good stock, laid drain pipes,
nd pure hased commercial fertilizer
y the ton. At the end of the year
.is barns are full and his crops are
lfe from the weather, while Browns
rops ore meager. and further reduc-
by frequent wettings.
1t is plain that Brown needs cash
apital, but he has been brought UP
} save, not to borrow. He looks up
n a mortgage as disgrace. The
,nly time he borrowed, he was una
lie to pay at maturity. He was
harged a commission and an eX-
)rtionate rate of interest for a re-
ewal That loan was burden for
ears, and always a nightmare.
Then Browns cousin Joe comes to
isit. Joe Is storekeeper in ali
..stern city, doing business largely
i borrowed capital. He tells John
lat every prosperous merchant and
manufacturer borows money. He asks
ohm what he suposes banks are Gor
it is 4 disgrace to borrow.
Brown is half convinced. He gath
$ courage one day to go into the
saarest bank. He feels shabby and
)ut of place in the midst of so much
marble and brass and mahogany. His
.ourag2 oozes, his voice shakes, he is
early oyer-awed. and the bank Off
,ial decides that he is a cheap fellow.
Brown is glad to escape with his
nat. He scarcely recalls why his loan
5 refused, but there was talk of dear
non, =, and the risk of tying demand
lepoit.i up in long term loans. The
cal ryason is that the banker does
lot ka " Brown or his farm.
And taen Browns friend Robinson
urns H. one day, fresh from attend
nee on a hearing by the Federal
'arm Loan Board, letently appointed
y Pre-. dent Wilson under the Rural
iredits bill. The Board is touring
he country to ascertain the farm
.oan needs of the various districts.
jrowns interest is aroused. Here is
help to which he is entitled as a far
ner and an American. He writes to
he Federal Farm Loan Board at
Washing on, and this is what he
earns:
The United States will shortly be
divided into twelve Land Bank dis
riots, each containing a Federal land
oank. One of these will be establish
ID in city not far from Brown, for
h esole object of loaning money to
.armers for productive purposes On
the security of their farms. The far
.ner will borrow, not as a favor, but
IS / right.
Every borrower will take percent
If his loan in stock. and thereby be-
come a partner in the enterprise. He
will get his money at cost. Any prof
t will be returned to him in divi-
iends.The interest rate can not ex-
coed per cent. The law fixes thar.
But tn crate may be as much lower
as cheap money and good manage
nent will warrant.
Brown learns that tn Gland bank
will not deal directly with him, but |
through national farm loan associa-
ion 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 |
capital. He invites them to a meet
ing in his kitchen
Brown and his friends organize
farm loan association. From the
Farm Loan Board they receive circd-
lars and blanks. The benfits are so
great an dthe plan so simple that
they would be suspicious if he papers
had come from Wall Street rather
than from the Government.
They elect officers, fill out the
blanks, sign their names, giving the
amount of money required by each,
and send their application to the land
bank in their district The land bank
sends an agent to investigate. He
makes favorable report and they
receive a charter covering their coun-
ty. Brown is made the Secretary