The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1917-01-31
]. j. M'SWAIN SPOKE
ON FARM LOAN ACT
Attentive Hearing Given
Him by Farmers.
ACT ENCOURAGES
HOME OWNING

Our Government ITSELF" He Said.
Compared 1t to Regional Reserve
Banks.
"One of the grandest business
schemes since the organization of our
government itself" was the way Mr..
j. j. McSwain characterized the legis,
'lation which brought about the fed
eral land banks in his address before
a meeting Of farmers in the court
house Saturday. With the Regional
Reserve System to stabilize the finan-
cial and mercantile interests of the
country and the land banks to assist
the farmers Of the nation, he said that
this country was now placed on the
soundest basis in it's history.
The meeting Saturday, called by Mr..
j. Wade Anderson, secretary OF one
of the associations already formed,
was attended by representative body
Of farmers and business men and the
cloest attention was given Mr. Nc
Swain in his excellent address. At its
close, several AUDITORS, including Mr..
l.. s. Bolt and Mr. F. p. McGowan
made few remarks urging the farm
ers Of the county to take advantage of
the provisions of the law.
Mr.. McSwain, in opening his re-
marks, stated that he would give only
general outline of the law, as the
directors will have wide discretionary
powers in applying it to individual
cases. The rate Of interest to he paid
on the farm mortgages, he said, would
not exceed per cent and in all likali-
hood would be less. according to the
rate at which the land bank will be
able to sell the bonds. In no case, he
said, would the farmer be charged
more than per cent more than the in
terest on the bonds, this much being
allowed for the cost Of conducting the
land banks.
The present high rate Of interest, he
said, Is due to the fact that the farm
ers have been borrowing in small
amounts from private individuals who
are naturally interested in securing
as much for their investment as nos
.sible. The government will make the
lower rate possible by selling the
bonds Of a large number of farmers
In the money centers where rates are
lower. The government, he said, does
not propose to lend money directly to
tn farmer except at the beginning in
order to get the law into operation. AZ
ter this the government will only di-
rect the sale Of bonds secured by the
farm mortgages, the government only
acting as medium Of sale. Under the
Federal Land Bank law, the investors
in the farm bonds will know that the
mortgages are safe, as they will be
guaranteed by the Land Banks and the
farm association. The security Of the
land banks can only be endangered
by the failure Of crops in all sections
OF the country at one time, a great
depression or failure of titles as each
mortgage Is guaranteed by the entire
Land Bank system.
Not only should the farm loan sys-
TEN be encouraged because OF the low
rate or interest, he said but because
OF the encouragement which it will
give to the small farmer and pros
petcive land owner to buy his own
home. With the farm loan act in op-
GRAFTON and with loans made on lone
terms and low rate of interest, there
Is little likelihood OF a loan being
called unless the borrower proves
unwilling to apply himself In paying
it off. Provisions are made in the law
for The borrower to have the payment
OF interest and installment in two
out OF every ten years whore ii i!
shown that inability to pay is9not duo
to laggardncss on the part OF the Dor
rover himself.
Loans, he said, will be made 70,
from five to forty years, according t
the wishes of the borrower If q
any time it appears TO the borrowci
that he can get the benefit Of lowe
rate Of interest or If he wishes hi
loan changed from short term to
long term, he will be ablo 10 chang
Ills loan so as to secure these Denc
fits. Or, IL the borrower meets viii