The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1916-09-22
Judge Lamm and
the Land Bank

present impression" was that the
legislation was unnecessary and that
the bank would be hazardous and
expensive"
Judge Lamm's criticism indicated
he had not studied the Gardner bill
thoroughly, though it is of the great
est interest to the agricultural classes
of Missouri. But he is against it,
anyway.
fnferentially Judge Lamm endorses
the new Federal Land Bank law as
practicable. He seems to approve Of
this splendid Democratic enactment,
but condemns the Gardner bill, which
is the same in principle though diff
ferent in detail. The Gardner meas
ure simply will provide more relief
for the financially oppressed farmers
here at home.
The truth is that the State land
bank is needed just as State banks
and trust companies are needed as
well as national banks. When the fact
is borne in mind that Missouri farm
ers alone are paying high interest on
| outstanding mortgages totaling S1l8,-
100000, while the Federal land banks
will be able to loan only S1S0,000,OOO
at first for the entire United States,
the measure of the additional imme-
date relief to be supplied by the
Gardner bill is appreciated.
Through the National land banks,
Missouri farmers, as soon as they
form associations, make applications
and conform to Other details of the
law, will be able to borrow about
100000 at low interest, probably
half or a third less than the rate
most of them now pay, depending on
the length of the time covered by the
loan.
Under the Gardner bill farmer will
be able to borrow money at and $40
. per cent for twenty-five years. Loans
| for shorter periods, down to five years,
win be made at slightly higher rates
The principal is to be paid back an
, nually in small installments.
e The formation of associations will
{ not be necessary, borrowers merely
applying to the State Bank Examiner
l who is to be the executive head of the
r State land bank.
' Among the essential features ir
which the Federal and Gardner meas
ures are identical is that Hnder botf
laws farmer can borrow money W
to one-half the actual value of hi!
land, and he may use the money fol-
: paying off membranes, buying
stock and machinery and improving
u the farm in every way. Tenants ma!
become land owners.
: Judge Lamm would lick to know
: "why Missouri should embark in tn
:, expensive and hazardous banking
business ?"
:, There is nothing expensive abou
. it. The present machinery of tn
7 State will, in the main, operate tn
, bank. The board of directors vii
: consist of the Governor, State Ban
y Examiners and other State officers a
y no increase in salaries.
The Attorney General and Prose
Il cutting Attorneys in the various coun
: ties will look after the legal affairs o
e the bank, and the county officers, al
so without extra pay or fees, will as
. sist the banks few appraisers who
y with few extra clerks in the Stat
u Bank Examiners Office at Jefferso
City, will be the only specially pal
q employees. Could anything be simple
II or more economical?
As for the "hazard." Is it hazard
out to loan money on Missouri farm
at one-half the actual value? Is Their
any better security on earth? Els
n pecially with the State and county OF
u ficers giving assurance that the none
( borrowed will be used for clearing u
old debts, clearing the titles, reduC
n ing interest charges and improvin
y the farms?
e The State runs no risk under tn
y Gardner bill. 1t merely loans a mi
ID lion dollars at first to start the banl
1t When this money is loaned out dc
benture bonds are issued against tn
= securities held-the lands mortgage
and these issues can be kept up
cycles until many millions are loane
to Missouri farmers for improvement
purposes.
Meantime one-half of one per Ger
is charged on each loan as a sinkin
fund to repay the State for the orig
inal working capital. In time tn
State will get back its money, an
the land bank will have cost the tau
payers nothing.
The State also will be protecte
by definite amount of land mort
cages on hand and the unlimited liza
bility notes of the borrowers.
Perhaps one reason the Gardne
bill fails to appeal to Judge Lamm
because it is so plain and simple.
contains no involved passages so dea
to Judges heart. 1t is straight
forward business proposition.
Not only will the Gardner Stat
land bank occupy the same relation
ship to the Federal land banks tina
State banks and trust companies bea
to national banks, but it is buildin
and loan association for Missoui
farmers, designed especially to NEE
their requirements.
Judge Lamm is falling into tn
Hughes habit of captious criticisr
and peevish fault finding without Of
fering any constructive substitute Q
the measure he attacks.
1t is quite evident that he has nc
studied rural credits as has Col. Gard
her. Had he have put in years of pa
tient and thorough investigation of til
subject he would know that Missouri
ri's agricultural classes are in grea
need of relief from money sharks, an