Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1917-02-16
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'FAl;M TENANCY.
Effect of NV Bank Law Discussed
q. IN Exert.
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(By nN v. Wilson.)
Students of American agricultur
have been greatly concerned over tn
remarkable increase in farm tenantry
Years ago when land was plentiful
and cheap tenantry was almost un
known. The man who wanted to farm
| simply went out and purchased chea]
land and settled on government land
Practically all Of the land was farme,
by owners.
When the supply of cheap land be
came exhausted and most of the lane
occupied, there was no longer an out
let for the increasing number of land
less farmers. Cnsequently thos,
who wished to engage in the bushes.
were compelled to dickcr with thos,
who already held title to the lands
The result was Il rapid and astonish
ing increase in the value of lnads
Farm land ownership now represent
billions of dollars in land value.
which constitute positive bar to the
getting of farm homes by landless
farmers.
The question is frequently asked
IF the farm loan act provides cheap.
er money for land purchase will il
not make it easier for some men to
get credit to monopolize land, in
creased land values, make it harder
for the tenant farmer, and perpet-
uate and broaden the tenant question ?
The anwer is. tina the privilege of
borrowing under the farm loan act
lie denied to any except actual farm
ers. 1t is denied the landlord and
the SPECTATOR. Furthermore, the size
of the loans is limited to $4,000 Ia
check the tendency toward too large
farms and land monopoly.
So it will be seen that the farm
loan act gives to the rich no addi-
tional advantage in buying land, but
does give an added advantage to the
landless. 1t exerts its financial pres
sure and will always do so, in favor
of actual working farmer ownership
and against absentee lnndlordism Oh
the holding of lands out of use for
speculative purposes.
Benefit the Tenant.
But it has been frequently asked
how credit system that lends only
up to so per cent of the value of
the land enables the tenant to buy
a farm if the tenant has not saved
the other so per cent.
To this man the avenue for acuuir-
ing the other so per cent is the sec
ond mortgage, given either to the
original owner of the land or to pri
vate money lending agency. Finan-
cial men predict that under the farm
loan system the second mortgage will
taken on new value.
The tenant who wants to buy land
indicates what land he intends to pur-
chase when he joins the farm loan
association. Then when he gets his
loan up to so per cent of the value
he pays that down to the original
owner of the land. Then he executes
a second mortgage to the original.
this mortgage to come due, say in
ten years. Tho first mortgage under
the amortization plan will be grad
ually reduced each year and the re-
quired payments Hereunder will be
so small as not to menace the until
mate security of the second mort
gage. This will be an advantageous
arrangement for both parties.
The original owner will get n so
per cent cash payment for his land
which is more than he would ordi-
narily get in a real estate transac-
ton. The tenant will find that, unless
he has paid an unduly high price for
his land. his annual paments to re-
tire both his first and second mort
cages will not be as great as the rent
previously paid.
In some of the State ssccond mort
gage banks are already being form
ed by private individuals to lend mon
ey to landless people of proper char
acter who want to buy farms and who
have not saved the 80 per cent as a
nest egg. 1t is believed by financiers
that men with farming ability and
integrity will not have difficulty in
getting the proposition financed. 1t
depends altogether on the character
Of the borrower
For Group, Coughs and Colds.