The Pickens sentinel. (Pickens, S.C.) 1911-2016, 1917-03-08
FARM LOAN ACT.
VI. Its Social and Economic
Effect.
49,, 49,,
(Ry Frank II. Wilson, federal loan bu
reau. Washington, D. c.

The main points Of the federal farm
loan act have been set forth In the
preceding installments. The reader
will readily see thut this act Is Il new
thing in this country, and is liable to
have an important effect on our social
and financial life.
Let us briefly suggest some of its
possible effects
The rapidly increasing cost of living
has Of late given American thinkers
a great deal of uneusiness. The fact
Is everywhere recognized that our city
population has been increasing more
rapidly than the rural population. Ev-
cry day there are some more mouths
to feed, but there is only slowly in
creased acreage upon which this food
Is produced. Two important fucts are
therefore patent:
First, more farms must be established
to provide homes for more producers.
and, second, the land under cultivation
must be farmed more carefully and
with more and better equipment to
meet the growing demand for food.
The farm loan act will have Il strong
influence toward Il realization of both
Of these ideals.
Will Reduce Tenantry.
Farm tcnantry is a curse whose
worst effects are lowered fertility and
inefficient farm methods The tenant
is not IL normal farmer The transient
nature of his living makes maximum
production impossible. He Is often
not meat producer, because he is
not on one farm long enough to build
up u herd of live stock. He is Il grain
farmer, and grain farmer is IL Sapper
of fertility. He is engaged in the past
time Of hauling the fertility of his land
lords soil to market. With approx
mutely one-half Of the farm lands of
the country in the hands of tenants,
America is cashing in her land fertil-
ity AT an aEnnzing rate.
The farm loan act has for one Of
its important purposes the placing of
land into the hands Of owners who
will farm it with the inspiration that
comes from ownership. The owner Of
land treats ii SO as to conserve its fer
tility. He is Il permanent fixture in
the neighborhood. He markets his crop
through his live stock, returning the
fertility to the soil. A nation Of land
owners means Il nation with Il con
:stantly increasing capacity to produce
food for it's people.
But the farm loan net will do more
for agriculture than merely supply
ing cheap money. The act actually
specifies how the money borrowed
shall be spent 1t says that unless
used to pay debts, it shall be spent on
things that will contribute to more
production on the same acreage. So
the farm loan act means Il higher and
better type of agriculture.
Will Stimulate Cooperation.
But some students Of the act be-
lieve its greatest contribution will be
the stimulation to the practice of CO.
operation. Cooperation is it's basic
fact. Farmers are required to get to-
gether into groups to secure its benc-
fits. When they put their mortgages
together for the sake Of getting cheap
er money, they will also form the habit
Of cooperating in other problems of
common interest. Who knows but that
these cooperative associations may be-
come the business and social units of
farm society?
The financial saving to the farmers
of America would alone be enough
to Justify this enactment. On II vol
ume of four billion dollars our farm
ers are paying now nearly per cent
annually, all Of which is II tax on all
the people because it limits consump-
tion by hnndicapping the producer. If
this rate should he reduced by per
cent it would mean an actual annual
saving of $1G0.000.000. But this eSti
mate of the money 10 be saved does
not take into consideration the fact
! that the normal volume Of furm loan
business will greatly increase with an
advantageous interest rate
The success of the farm loan bank
Ing system is now up to the farmers
themselves. They have been given
| the cooperative machinery to finance
themselvS without profit to any indiv
iduns. They have been given the ma
chnery for governing their own finun-
| cial institutions and maintaining CON
| troll of them. So carefully is their
| ownership guarded. no matter who
| that eventually none but the farmers
may have voting power
! Yes, the federal farm loan act is
somewhat revolutionary. 1t upsctS all
! past practices in farm finance. Ii puts
| the interests Of the majority above the
| interest of the few. 1t gives the under
| dog Il chance. 1t writes humanity
! First" across the ledger of modern
! business.
Frankly Admitted.
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