Pine Bluff daily graphic., 1916-02-16
FARM CREDITS.

A bill to create land mortga ge
 bank system has been completed by
 the joint congressional rural credits
 committee. 1t would provide fer a
 loan of $6,O0O,O00 from the federal treasury, to chain of twelve or more regional banks, which would deal in mortgages on country prop erty. Federal fanm loan banks. pro-
 posed in the measure, would be authorized to issue and sell land
 mortgage bonds, and provision would
 De made for the organization of joint stock loan banks by private capital,
 subject to control of federal farm
 loan board. Bonds and mortgages of
 the banks would be x(mpt from tax ati1n.
 The committee Ion industrial rela-
 tions has opened war on this bill and called it "bankers' bill to benef
 insurance, companies. trust ccn
 panies and other investors of that class who want the government to guarantee their investments and ex- |cmpt them from taxation,"' rho average farmer who needs d chattai loan, who wants loan on his crop; the eiNE worker or the tenant farmec
 who requires assistance to enable
 him to- put idle land to use, will get
 no benefit from this bill if it is gwen the, form of law the committee declares. In the committees opin- ion the real rural credits enactment,
 when it comes, will have these gen. eral features
 "Tfe law will provide for chattel loans, or personal property leans, and for personal credit loans as well as, land mortgage loans. IL will in- clude the principle that man Of known character and int gritty who nesds money can get it because of tn Nes qualities.
 d" The machinery will te simple and iEs expensive and the government, will have direct supervision. It will e;r- ploy banking experts, but will not surrender to the bankers monopoly. Borrowers will be given access di- rectly to the sources of money and not have tho bankers trust between fhem and the money. For example, the government postal savings de- posits and othef available revenues will be invested in debenture bonds based on the loans of the system
 Without reference to the position assumed by the committee on indus trial >relaticns, Congre ssTan Uazaro of Louisiana has said:
 s''We know that wonderful com, mercial expansion and industrial de. velopment of this country woul have been impossible but for the credit facilities especially designed to meet the needs furnished for so many years through our national banking system and improved by the federal reserve act But this wonder full banking system, as good as it is. provides no adequate facilities to meet the needs of cur tremendous and growing agricultural interests. A rural credit that would relieve the average farmer from the burden that excessive rates of interest and short terms imply, enacted at this time, would round out the financial reform begun in 1913. Without this separate financial system it is impossible for our banks tp tneet tho situation. and wise and farseeing bankers undef- stand that the permanent prosperity of this country depends upon the pro. motion of our agriculture. Therefore. we need a law under which the farmer can buy his own farm and pay for it with money borrowed at a cheap rate of interest and on long terms-a law that will permit the to lend it's credit to assist in the liquidation of this enormous security, which is absolute ly sound and farever certain, on the hest possible tsrms.'
 Land mortgage banks will not solve the rural credits problems, says the tTexasl Enterprise. Their reach is too short. The field in, which i Is proposed to empower them b operate is too narrow. Aside from a promise ors a somewhat smaller rate of interest for tho farmer who is com raratively we'll fixed the plan foc fheir creation contains nothing hopeful for the nan who would be-