Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-08-16

have been free to condemn the Wilson and
the Democratic party whenever thought condemnation
we have not hssaed to give them credit for
praise s he
going tremendous strain like that Of the present world crisis
the
s sssbs The the
free silver dogma that tended to unsettled credit and
ehsf %er Of the federal s and banking
ss% the %
and Of the world faith in circulating medium which has
with the present conflict the race has ever seen
The backbone of public confidence embodied in federal
Of money begins to make itself felt in any particular part
Of the country the government must move sufficient amount
The result is that there can be no real stringency It
H 10 tine s the 1907
York city held large block of stock the Tennessee Coal
and Iron company The steel wanted that stock in
an y Ss the bank and kept
New York came to the relief Of the whole situation.
to promote the operation Of the big steel
have been warranted expanding credit until it knew it
would not need its surplus funds to tide the for
Merchants need funds with which purchase large
stocks of goods Manufacturers consequently short Of
orders Workers thrown out of employment Disaster
With the Federal system in operation such squeezing"
Of money ION made practically impossible you know you
BANK you do not Worry about being Without money fyoS
know there will be plenty Of money available in g0eral
credit is thus thoroughly established.
The latest extension of the federal system that of the
terest not only farmers but also to ali interested in bank
ing institutions and insurance companies and
TENS by all financial institutions of whatever character This
fact will become evident from glance at the proportions
system.
The sta S Just Issued By the farm m loan
the cooperative banking system for farmers has been put into
being made at the rate Of nearly day. About Is
farm loan associations being chartered daily each asso
During the the country has been divided into twelve
federal land bank according to the farm loan needs
money late in the spring and the and half months
just closed than 800 have been
is expected that already received will run the total
brief summary of the modus operandi may be helpful
at this time After farm loan associations chartered the
proved Under the act farmers permitted to Borrow for
the purpose of land purchase refundng existing indebted
srucon Of improvements and the purchase Of fertilizer
and equipment for the cultivation Of the land
value of the land plus twenty per cent Of the appraised value
of the Improvement permanently ensured
ton pa and generally for thrysix years Farmers
make annual payments equal to six cent five cent
The payments will thus wipe mortgage in thry-six
years. but the mOrgagOr has the right all
Of the mortgage after it has five years.
It to be noted however, that while prospective farmers
borrow this cheap capital not be used for speculative
land since loans not exceed
$4,000 in amount Land leased to tenants not be mort
gagged under the federal The system is thus put
thoroughly sound business basis.
interesting in turn to how the great amount of
capital required for this system secured AS banks lend
money to farmers and take mortgages return they issue
bonds which sold to investors the other
bonds These bonds bear interest the rate of four and
half cent and free from all taxation being declared
"nstrumentaties of the government The bonds of
federal bank endorsed by all of the banks and
sequeny all bonds have behind them the of all of
the twelve regional banks and all of the mortgages represent
ing the land value appraised at twice the amount of the obi
cation against it.
The way in which these bonds estimated by the in
vesng public be judged from the fact that they
selling present at 1915 The board expect the issue of
these bonds will within exceed S1O0OOoO00 in amount
and may reach $150,O0O,000.
While the law permits the board per de-
fray the of the federal land banks the board be-
lieve the margin between the A. cent interest borne
by the bonds and the cent interest paid for the farmer
will fully meet all this expense.
In this connection in the of the federal
bank system there to be factor that interfere
with sterling credit No farmer be squeezed during
practical life time while the other hand he wipe off