The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1916-07-26
THE FARM LOAN ACT.

The Importance of the federal farm loan
bill, which was signed by the president on
July III, to the agricultural development of
the country. can hardly be over-estimated.
The act provides for long loans on agri-
cultural property at low rate of interest.
The loans will amount to 80 per cent of the
value of the land and 90 per cent of the
value of the permanent improvements, and
will be made to purchase land for agricul-
tural purposes, to purchase fertilizer, equip
ment and livestock, to liquidate previous
indebtedness; and no loan will be made to
anybody who is not already or who is not
shortly to become engaged in the crltiva-
ton of the farm mortgaged Loans are to
be from 500 to $4,000, and will be paid
back on installments ranging from five to
forty years.
With such encouragement as this, agri-
cultural development of the next few years
will be little short of phenomenal The pro-
vision enabling farmer to borrow money
at per cent on such longtime notes, with
simple interest on defaulted payments,
proves the intention of the government to
develop the resources of the United States
on small holding plan. Intensive farming
is the agricultural science of the day, and
small farms are the standard. The tenant
system IS recognized as incompatible with
the American ideals of democracy. It is the
purpose of the farm loan act to create an
agricultural class as sturdy and as indie
pendent as in the days of the early coloni-
cation; to give each man a home in which
ne IS lord, and farm over which he will
hold sway; IN word, to foster individual
ism to the utmost.
1t IS impossible, in a restricted discussion
like the present, to discuss the full scope of
the new act, the object of which, in addi-
ton to providing capital for agricultural
development, is ito create standard form
OF investment based upon farm mortgages,
to equalize rates of interest upon farm
loans, to furnish a market for United States
bonds, to provide for the investment OF
postal savings deposits to create govern
ment repositories and nanfcia1 agents for
the United Statess
We may we'll be proud that our own
Senator Fletcher as the one man mainly
responsible for such constructive 1egisla-
ton
Senator Fletcher was appointed chair
man of the commission sent to study the
land credit system of Europe, and it wa!
Senator Fletcher's tentative bill, submitted
with his report that was finally passed
with only few minor and technical modi
fications.
Senator Fletcher voiced the nationwide
recognition of agricu1ture's supremacy
when, in accepting from President Wilson
the pen which validated the measure, h,
said:
Mr.. President / thank you exceedingly for
this pen which has been the instrument of i'm
pressing your approval to bill intended to estab-
lish system which will bring to Agriculture,
you have suggested long delayed justice, placing
that essential industry equal footing to
financial operations with every other important
industry of the country. / believe you will not
consider it indicating any lack of appreciation
my part, if l ask permission to find way to pass
on some portion of the honor and have it share
therein way, to the Southern Commercial
Congress- without the efforts of which
we could not have accomplished this legislation,
which means long step forward for the country,
so soon after the very earnest movement for it
begun.
E We, of Florida, are proud to have such
: man as Senator Fletcher represent us. w
: are especially proud that he is the father
e this federal loan act.
:. Agriculture is supreme The farmer
]; king The new act will enable Yves
G Florida to come into its own.