Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-01-23
Farm, Loan Plan
Aimed to Check
Tenantry System
ARTICLE vi.
[By Frank r. Wilson, Federal Farm

lBy FRANK II. wilson, teOera1 fdrM
Loan Bureau
The main points Of the federal farm
loan act have been set forth in the
preceding installments. The reader will
readily see that this act is new thing
in this country, and Is liable to have
an important effect on our social and
financial life.
Let us briefly suggest some Of Its
possible effects:
The rapidly increasing cost Of liv-
ing has Of late given American think
ers a great deal Of uneasiness. The
fact is everywhere recognized that our
city population has been increasing
more rapidly than the rural population.
Every day there are some more
mouths to feed, but there is only a
slowly increased acreage upon which
this food is produced. Two important
facts are therefore patent:
First more farm loans must be es-
tablished to provide homes for more
producers and, second, the land un-
der cultivation must be farmed more
carefully and with more and better
equipment to meet the growing de-
mand for food.
Loan Act to Aid. ..
The farm loan act will have a strong
influence toward realization OF both
of these ideals.
Farm tenantry is curse whose
worst effects are lowered fertility and
inefficient farm methods. The tenant
is not a normal farmer. The tram
imum production impossible. He Is
often not a meat producer, because ne
is not on one farm long enough to
build up a herd of live stock He is a
grain farmer and grain farmer is
sapper of fertility. He is engaged In
the pastime of hauling the fertility OF
his landlords soil to market. With
approximately one-half Of the farm
lands Of the country in the hands OF
America is cashing in her land
fertility at an amazing rate
The farm loan act has for one OF its
important purposes the placing OF land
into the hands of owners who will farm
It with the inspiration that comes from
ownership. The owner of land treats
il so as to conserve its fertility. he
is permanent fixture in the neigh
borhood. He markets his crop thru his
live stock. returning the fertility to
the soil. A nation Of land owners
means a nation with a constantly in
crcasing capacity to produce food Tor
its people.
But the farm loan act will do more
for agriculture than merely supplying
CHEAP money. The act actually speci-
fies how the money borrowed snail De
spent. 1t says that unless used TO pay
debts, it shall he spent on things that
will contribute to more production on
tho same acreage. SO the farm loan
act means a higher and better type OK
agriculture.
Pint some students of the act be-
lieve it's greatest contribution VIII Dc
the stimulation to the practice or CO.
Co-operation is its DasIc
fact. Farmers are required to get To-
yether into groups to secure Its bene-
fits. When they put their mortgages
together for the sake OF getting
cheaper money, they will also form the
habit of CO. operating in other prob
lens Of common interest. Who KNOWS
but that these cooperative assocla-
tions may become the business and so
cial units Of farm society?
The financial saving to the FARMERS
OF America would alone be enough 10
Justify this enactment. On volume
NJ "a. 600. 100000 our farmers are pay
ing now nearly per cent annually
all Of which Is tax on all the people
because il limits consumption D!
the producer go
Annual Saving Of $160,0o0,o00.
II this rate should he. reduced by
per cent il would mean an actual an
nual saving of s160000.0O0. But this
estimate of the money to be saved
does not take into consideration the
fact that the normal volume OF farm
loan business will greatly increase
with an advantageous interest rate.
The success Of the farm loan bank
ing system is now up to the FARMERS
They have been given the
CO. operative machinery to hnance
without profit to any In
diyiduals. They have been given the
machinery for governing their own
financial institutions and maintaining
control of them. So sarefully Is their
owership guarded, no matter VINO Guys
stock in the federal land banks event
uallv none but the farmers may have
voting power >,
Yes. the federal farm loan act is
somewhat revolutionary. 1t upsets Oil
past practices in farm finance 1t puts
tbe interests Of the majority above
the interest Of the few. 1t gives the
under dog a chance, 1t writes "Hu-
srr+" across the ledger OF mod