Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1916-07-21

Asu1NGTON D. c. July 12.-The much dis
NJ cussed and long awaited rural credits Dill mas
w passed both houses of congress with renlarA
ably little opposition. BY the anlHing OF the preS
Dental signature this highly important and
ing measure becomes law, to be known uhoer 'ne
short title of the federal farm loan act
When one realizes that 1t is conservatively esti-
mated that about forty billion dollars worth OF real
property in the United States is made liquid as
basis of by this legislation, that farm prop
ertv long regarded the black sheep among securl-
ties for long time loans. will be used under it as Sc
rit for long term loans of interest that
the whole complexion of rural life in America may De
changed as result operation it is evident that
the Importance of the law cannot be overestmateu'
The measure was practically a non-partisan one.
In the final vote in the senate there only five
dissenting votes; in the with its much larger
membership only plank promising the enact
ent of such legislation integral part OF each
of three party platforms of 1912
The federal farm loan act strikes at the roots Of
the rural credit situation. and eab-
crate system of finance to cooperate with the farmer
and with the who wants to land in the coun-
try The who have been working for 1t ana on
If for the last years look for great and funda-
mental changes in national life result of its
operations They expect it to prove great stimulus
to rural prosperity, put the black to the farm
movement on a where it will really move to di-
minsh tenancy which is the increase in this coun-
try and large class which is attached 10
the by ties of pride and ownership, class whlcn
will be in the worn, but expressive phrase the
backbone Of the nation
What is the federal farm act? In the words
of one man who has been connected with the move
ment from inception, it's purpose is to make liquid
the forty billion dollars worth of farm property in the
United States basis of credit for long time mort
gage loans at low rates the amortization
plan" There is good deal said by implication in
this sonorous statement of the case.
When farm property is made liquid a basis of
credit it means old state of affairs by which
farm mortgage reluctantly received by most
banks as security loan is done with When
such a mortgage accepted the loan was usually
a short time loan, which meant that the farmer had
heavy payments to make, and often had to overwork
the SOIL his family and himself in order to get enough
money the three to meet his obligations in the
specified time Low of interest" speaks for it
self In amortization feature of the system lies
one of it's important and advantageous points.
BY amortization this is meant the payment
of principal of loan in small periodical install
ments along with the interest According to some
men, the farmer who borrows money under the new
system pay interest much he did under the old
regime only the end of term of years these pay
will only have covered the interest but also
wiped out principal his debt instead Of
being as deeply in debt ever, he finds himself
unencumbered landowner. While the case may
work out in quite ideal this the
annual payments the principal of loans will be
so small and the interest low,
may quite possibly pay off both without much more
effort he formerly expended in meeting his inter-
est payments Moreover it is well known that it is
easier to meet an obligation in small payments
over a period of years than to enough money
to settle it with lump sum at one time
The federal farm loan win function CO.
lucrative basis, by which the borrower bacomes
stockhoder the association which gets his loan for
him In order to borrow money under the new act
the borrower must subscribe for stock in farm loan
association to an equal five of the
1oor no desires to make If the application the
loan is granted question determined by expert
praisa security offered-the applicant becomes