Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-09-11
Editors Letter Box
Master Thompson Answers Mckeen

MaSter thompson Answers mCNeeh
South China, Me-, Sept Z, 1916
(Open letter to B. Walker Mckeen, in
reply to his letter of Sept. %
B. Walker Mckeen,
Fryeburg. Maine.
Dear Sir:
In answer to your letter OF Sept. 2, I
will say that I am only too glad to an
swer any fair question, and give my
reason for it.
First: You ask II am correctly quot
ed as saying at Augusta at the Federal
Farm Loan hearing, THAT the farmers
Of Maine are now operating home farms
more than farming for business, except
in Aroostook county, and are not fully
ready for the benefits Of the Rural
Credits Act
The sense Of the statement at least is
correct. and I supposed everybody knew
that farming in New England had always
been basicly a BODYBUILDING industry.
In the past to a larger extent even than
1t Is today, and 1 believe that we are
particularly fitted for this kind Of indus
try. It is not the same In the West IN
such states as Iowa, where one-half the
farmers are tenants, the owners living
In town and operating their farms purely
as a business The Western farmer Dor
rowing for business Is free borrower
the Maine Farmer does not like to put
mortgage on his home
Second: Will the Maine farmer use this
bank? I do not believe he will. for the
reason that If he has the security that
the Federal Bank requires, he can get
money of a neighbor or at local bank
and the cooperative features OF FORMING
Farm Loan Associations will not appeal
to the Maine farmer.
Rural Credit and Farm loans. SOUND
good but when you study the provisions
of the act you will see that there is moth
ing In it for the Maine farmer.
farmer wishing to receive a loan
must first form an association with at
least nine other farmers who together
must borrow not less than $4,000, no one
receiving less than 500, or more than
$4,000. They must advance $50 of this
loan in stock. The loan is placed on not
more than one-half the value of the land
pluc 20Go the value of the insured inn
provements. The loan must be made for
not less than five years or more than 40.
The interest must not exceed So and
is to be paid annually or semi-annually
together with a part of the principal
sufficient to cancel the debt at the close
of the period.
Third: AS to the prevailing rate Of in
terest in Maine at the present on farm
This question does not allow any diff
ference of opinion as it can be readily
ascertained. From the best information
1 can get about $50 of the farm mort
cages Of Maine are held by banks, which
are the mortgages which concerns US. So
far as have been able to ascertain there
is but one small bank in the State that
holds a farm mortgage above SO. Mort
cages, with such security as this act pro-
vides are being taken by individual in
vestors as low as SD.
Fourth AS to the attitude Of the
Grange on this question.
The National Grange has stood for a
rural credit law mainly because of the
needs Of the West and South where in
terest rates were high and money not
easy to obtain.
The Legislative Committee of the Ma
tional Grange opposed the present act.
and it does not meet with their approval.
I can not see how my opinion as to the
usefulness Of the act can affect the
Grange or the farmers. It is a law and
If anybody can use it we'll and good ~
not no one will be particularly harmed.
Knowing as I do that your letter is hu,
q part Of determined and persistent eff
fort continued for some years past both
through the public press and in other
ways to bring discredit on the officials or |
the Maine State Grange. you must un-
that it is not my wish to enter
into any further newspaper controversy.
Yours truly,
w. J. THOMPSON.