The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-01-22
aim OF FEDERAL
FARM LOAN TO
REDUCE H. C.L.
Cheaper Credit Should EncOur-
age Agricultural Pursuit.
Encourages Owning Land
Rather Than Tenantry.
MORE THAN HALF RENTERS
Fosters Spirit of Cooperation
Among Food Producers.
Present Farm Loan Indebted
ness AZ Billion.
BY FRANK r.. WILSON

Written for the Topeka state journal
Washington, Jan. 22.-Since the
farmer of the United States is the 1000
producer for good share or the
world the granting of cheaper credll
to the farmer for the purpose OF en-
Iarging his opportunities and cheap
ening his cost of production is likely
to have an important part in the solu-
tior of the great cost of living.
The records of the United states
census office show constantly IN
creasing trend toward the cities. Each
wear shows that there are more per-
sons TO be FED, whereas the acreage
that has been producing food and the
number of hands to cultivate these
acres have not increased IN the sdihe
proportion.
IT is patent therefore that to meet
this increasing demand for food more
arms must be established to provide
homes for more producers and the
land now under cultivation must be
farned more carefully and with more
and better equipment.
Provision of cheap capital for land
purchase ard farm development Will
mean at least n partial realization of
these ideals.
If the Farm Loan Act will reduce
the percentage of tenantry in the Uni
ted States it will have accomplished a
great deal toward putting American
agriculture on HloIe Suu9eSli1
basis.
More than half of the farms of the
United States are now in the hands
of tenants. The tenant is transient
farmer and the temporary nature of
his operations prevents him from
operating at maximum capacity. Short
leases make it out of the question Tor
tenants to be large meat producers.
The tenant is usually grain farmer,
and ir many sections of the country
r<ar in
ing the fertility of his landlords soil
to market.
Must Use Loan on Farm.
The farm owner conserves the fer
tiIity of his soil by marketing ms
crop thru his live stock and returning
the fertility to the land A nation OF
land owners means a nation with a
constantly increasing capacity TO pro-
duce food for its people.
A reduction of farm tenantry and
substitution of a class Of land owners
means improved social conditions in
the country and more permanent
form of country life.
Since the farm loan act provides
how the borrowed money shall be
spent and limits its use to purposes
that will make farms more produc-
tive, it is bound to have an elevatlnS
influence on the standard OF agrlcul-
ture in the United States.
Every borrower under the farm loan
act makes it a part of his contract
that he will use the money either to
reduce the existing Indebtedness or in
some way that will contribute to
greater production on the same num-
/ Der of acres.
Since the formation of these small
| groups of farmers is the foundation
upon which the farm loan system is
built, it is apparent that this legisla-
| ton will foster the spirit of cooper
alton among farmers When farmers
put their mortgages together for the
sake of cheaper money it is reason
able to presume that they will form
the haIat of cooperation in other
problems of common interest.
Farmers Bear Mortgages.
The present farm loan Indebtedness
of the United States is probably APP
proximately four billion dollars. and
the average interest rate now
charged is between S15 and 9 per
cent If the farm loan act would re-
duce the interest rate of the United
States by per cent it would mean a
financial saving to the farmers of be-
| tween $50 and 200 million dollars per
year and this estimate of saving takes
no account of the fact that high in
terest rates have reduced the volume
of farm loan Indebtedness far below
what it will be when a lower rate is
established.
High interest rates and unfaVorable
terms of farm mortgages have been d
serious handicap to farm develop
ment Curtailing farm production
has taxed the consumer as well as the
producer because the limited produc-
ton of food gave an increased advan-
tage to the food Speculator.
The farm loan act is in a measure.
revolutionary. It stands for equality
of opportunity. 1t says that the ag-
gressive farmer who goes out into new
lands to enlarge the sphere of pro-
duction is entitled to the same oppor-
tunities as the man who operates in
a territory already developed. 1t puts
the public interest above the interest
of any individual 1t takes Individual
profit out of the business of financing
food production.
Editors note: The federal farm
loan board has issued five bulletins
explaining moro in detail the opera
ton of the farm loan act. If any
reader of the Topeka State Journal is
interested in taking advantage of this
act. he will get those bulletins free
of charge by addressing letter to
the Federal Farm Loan Board, Treas
ury Department. Washington, D. c.
BUTLER OF BUTLER DEAD