The Oakley herald. [volume] (Oakley, Idaho) 1908-1961, 1917-04-20
FARM LOAN ACT.
v. Its Effect on Farm Tenantry.
tBy Frank X. Wilson. federal loan
reau Mashington. u. @

~
reau. Washington. d. CO
Students of American agriculture
have been greatly concerned over the
remarkable increase In farm tenantry
Years ago when land was plentiful
and cheap. tenantry was almost I'M
known. The mnn who wanted to farm
simply went out and purchased cheap
land or settled on government land
Practically all of the land was farmed
by owners.
When the supply of cheap land be-
came exhausted and most Of the land
occupied there was no longer an out
let for the increasing number OF land
less farmers. Consequently. those
who wished to engage In the business
were compelled to dioker with those
who already held title to the lands.
Farm land ownership now represents
billions of dollars In land values which
constitute positive bar to the getting
of farm homes by landless farmers.
The question Is frequently asked, IF
the farm loan act provides cheaper
money for land purchase, will 1t not
make it easier for some men to get
credit to monopolize land, increase
land values, make 1t harder for the
tenant farmer, and perpetuate and
broaden the tenant system?"
Only for Actual Farmers.
The answer is that the privilege of
borrowing under the farm loan act
Is denied the landlord and the spec
ulator. Furthermore, the size of the
loans is limited to $4,000 to check
the tendency toward too large farms
and land monopoly.
So, 1t Will be seen that the farm
loan act gives to the rich no additional
advantage in buying land, but does
give an added advantage to the land
less. 1t exerts its financial pressure,
and Will always do so, In favor of ac-
tual working-farmer ownership and
against absentee landlordism or the
holding of lands out Of use for specu-
lative purposes.
But 1t has been frequently asked
how credit system that lends only
up to so per cent of the value of the
If the tenant has not saved the other
so per cent.
To this man the avenue for acquir
ing the other so per cent is the sec
ond mortgage, given either to the orig
inal owner of the land or to private
money-lending agency. Financial meI
predict that under the farm loan sys
tenn the second mortgage will take OF
new value.
Good for Both Parties.
The tenant who wants to buy Ian,
indicates what land he intends to pur
chase when he joins the farm loan DE
ISOLATION. Then when he gets his loa
up to 80 per cent of the value he pay
that down to the original owner of tn
land. Then he executes a second mort
gage to the original owner, this mort
gage to come due, say, in ten years
The first mortgage under the amortiza
ton plan will be gradually reduces
each year and the required payment
hereunder will be so small as not t
menace the ultimate security of tn
second mortgage. This will be m Ad
vantageous arrangement for bot
parties.
The original owner will get
per cent cash payment for his Iant
which is more than he would ordinal
lily get in a real estate transaction
The tenant will find that, unless h
has paid an unduly high price for hi
: land, his annual payments to retlr
; both his first and second mortgage
will not be as great as the rent pr,
vlously paid.
J In some of the states second NOR
/ gage banks are already being forme
by private individuals to lend none
to landless people of proper characte
who want to buy farms and who hay
not saved the so per cent as a ne,
egg. 1t is believed by financiers thi
? mel with farming ability and integrit
j will not have difficulty in getting I'll
proposition financed. 1t depends q
together on the character of the bo
. rover.