The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1916-07-27
RURAL CREDIT BILL
IS NOW ALAW
PRESIDENT SAYS THAT FIRST
TIME AGRlcULTURISTs GET
DUES-TO PICK BOARD
OTHER COUNTRIES ARE AHEAD OF US
Plan Has Been Found Very Successful
and Great Aid For the Farmers
Generally

On Tuesday, July IS, President
Wilson signed the rural credits bill
which congress passed with the APP
proval of the Grange, Farmers Ma
tional Congress and practically all
farmers organizations.
Most European countries have had
similar laws several generations and
they have been very successful. Our
bankers, on the other hand, have been
forbidden by law to loan the farmer
on his land and he has been obliged
to find money where he could, often
at great expense, although he has the
best security in the world.
In 1910, farm loans in this country
amounted to $500, 000, 900, and his
security was estimated at $40, 900, 00O,-
600. His rate of interest including
commission and renewal fees averag-
ed $40, the time 3 to 5 years. The
annual payment was $3.50, 00O, 900, and
many lost their farms. Towns incor-
porated, have obtained money at little
more than half this rate and on 20
years time.
The provisions of this bill give the
farmer the same advantages. A land
bank will be established, in each dis
trict which will borrow money from
the public. Ten or more farmers wish
ing to borrow money will form a loan
association under the supervision of
the government, which will issue bonds
to be taken by the land bank. Each
farmer desiring money will give a
mortgage on his farm to his loan as
sociation which will issue a bond for
the same amount. He must subscribe
for a certain amount of stock and
pledge himself to use the money only
for payment of his land, or improve
ments thereon.
Just before signing the measure,
which creates a system of twelve land
loan banks under direction of a fed
eral board, the President made a short
address, pointing out the benefit he
believed both farmers and the invest
ing community would enjoy under it's
operation.
President Expresses Satisfaction
"On occasions of this Sort" said the
President, there are SO many things to
say that one would despair of saying
them briefly and adequately, but l can
not go through the simple ceremony Of
signing this bill without expressing the
feeling that have in signing 1t. 1t is
a feeling of profound satisfaction not
only, but of real gratitude that we have
completed this piece of legislation,
which I hope will be immensely bene-
fetal to the farmers of the country.
"The farmers, it seems to me, have
occupied hitherto a singular position of
disadvantage. They have not had the
same freedom to get credit on their
real estate that others have had who
were in manufacturing and CONNER
cial enterprises, and while they have
sustained our life, they did not in the
same degree with some others share in
the benefits of that life.
Financial Equality for Farmer
Therefore, this bill, along with the
very liberal provisions of the federal
reserve act, puts them upon an equality
with all others who have genuine as
sets and makes the great credit of the
country available to them. One cannot
but feel that this is delayed justice to
them, and cannot but feel that it is a
very gratifying thing to play any part
in doing this act of justice.
81 look forward to the benefits Of
this bill not with e~xtravagant %expecta-
tons, but with confident expectation
that It will be Of very wide-reaching
benefits, and, incidentally, it will be of
advantage to the investing community,
for l can imagine no more satisfactory
and solid investments than this system
will afford those who have money to
use.
81 sign the bill, therefore, with real
emotion, and am very glad, indeed, to
be honored by your presence and sup
ported by your feelings. I have no
doubt in what l have said regarding it,"
Conferred with President
Secretary McAdoo conferred with the
President later on the selection of
members of the new farm loan board,
who will be appointed in the near fu-
ture.