Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-08-22
Secretary McAdoo Interviewed

Following is Secretary McAdoo's
opinion of the rural credits legislation:
The rural credits BILL recently adopt
ed by Congress is an act of long de-
| layed justice to the farmer, according
of the treasury, who visited this city
today with the federal farm loan
board, of which he is chairman.
The secretary Of the treasury regards
this piece of legislatio as one of great
importance to the permanent prosper
lty of the nation, giving the farmer
credit advantages and facilities similar
! to those enjoyed by the business man
| and denied to the farmer for SO many
years.
The farm loan BILL" said Secretary
McAdoo, creates a system under
which the farmers of the United States
will be able, for the first time in the
history of the country, to borrow mon
ey on farm lands at low rates of inter-
est on long time, namely, from five to
forty years and by means of annual
dues or insta lments not only to pay the
interest but also to retire the principal
of the loan at maturity. This piece of
legislation is comparable in its benefits
and in the magnitude of the industry
it will affect, with the federal reserve
act, but it is in many respects far more
important to the country than the fed
eral reserve act.
ut is a statement Of an old and rec
ognized truth to say that the farming
;,oI &c 10 h1 sis of the life
and prosperity Of the nation, and this
statement is more particularly true of
the United States, because Of its agri-
cultural development which, although
great, can be made vastly greater if
our farmers are provided with the long
time credits at low rates Of interest
which are so essential to the further
development of the farming industry.
There is no inducement to greater farm
development unless It can be made
profitable and it cannot be made prof
liable unless the necessary capital is
available always to farmers upon reas-
enable terms. It is amazing that since
the establishment of our government
until this time, period of 127 years,
absolutely nothing has been done by
way of legislation to assure abundant
farm credits on reasonable terms to
our farmers. On the contrary, they
have been the preferred sufferers from
a scarcity of money for farm develop
ment and agricultural purposes, and
have been, as a class, particularly OPP
pressed by high, and oftentimes extor-
tionate, rates Of interest and Swallowed
constantly by the fear of mortgage
foreclosures. The farm loan act, or rur-
al credits bill, will emancipate the
farmer from the disadvantages he has
so long endured. 1t will, when fully
established, unquestionably provide an
abundance Of credits, available at all
times, to farmers in all parts of the
country upon long term mortgages at
low rates of interest, with a provision
for repayment of the principal in easy
annual instalments. In fact, under the
new system, the farmer ought to be
able to pay the interest on his mort
gage and the principal Of his debt
through annual instruments which will
be less than the straight interest
charges he has been paying on his
mortgage under the old system.
This is an act Of long delayed JUS
tice. We must see to it that those who
are entitled to it's benefits get them
with the least possible delay. The es-
Enlistment Of this rural credits system
means not only more profitable farm
ing. but a life Of greater comfort and
prosperity for the farmer; it means de-
struction Of the nightmare Of foreclos-
ure and loss of property for the farmer;
1t means security and independence.