New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1918-11-22
ADVANTAGES OF
FARM LOAN SYSTEM
GREAT FOR FARMERS
GOING INTO DEBT TO MAKE
A GOOD LIVING AND TEN
PER CENT" BY EARL w.
GAGE SHOWS HOW IT
WORKS OUT
By Earle w. Gage
In Philadelphia Farm Journal

said Samuel Newton. That's my
motto. never made dollar until
| got into debt-the right way. l
don't mean the average, ordinary
way of getting into debt under the
old methods, where the farmer
chases and worships some money
god | mean the new way, where
the farmer himself decides when he
shall pay off his indebtedness, pro-
vided by the Federal Farm Loan sys-
tenn"
Now Sam knows. for he is a mem
Der of National Farm Loan As
sociation. and has not only replaced
the old mortgage with the money
borrowed through the Federal Land
| Bank, but also some additional cash.
He is making "A Good Living and
1919" with this cash. How he does
il makes interesting reading for any
tller of the soil.
The farm on which Sam makes
this is an average farm, with no bet
ter land than is found anywhere in
the neighborhood He has us acres
OF land under diversified cropping.
for he believes with Andrew Car
negie that it does not pay to carry
your eggs all in one basket, since
you are likely to stub your toe and
experience a complete loss. There
fore, Sam makes it his business to
have the farm returning as many
different kinds of profits as he can
manage efficiently.
Two years ago Sam had 5000
mortgage, with interest at six per
cent, and principal payment of 5000
annually hanging over his head, or
trying to hang his head as he put
IT, At the time our National Farm
Loan Association was organized, Sam
was convinced that he should secure
a loan from the Government, and so
he applied for loan of $1,000 Hav-
ing ample security, the loan was
granted him.
He started out making profit
on this debt. Formerly he was OBJ
ligcd to pay the old holder OF the
mortgage $500 interest. 5000 principal
or total of $500 the first year
That is pretty stiff payment, es-
peciaiiy when the sun shines on the
wrong side of the fence, and crops
are not up to the top rail-
The new mortgage meant an an
nual payment of $3.50, including both
interest and principal, or just $31o
less than formerly, and he had bor-
rowed $4,000 more than before. The
old mortgage was taken over, and
with the extra $4,000 Sam showed
his neighbors that it is possible to
make "A Good Living and 1879" with
out stretching the imagination.
First, Sam purchased tractor.
adapted to his particular farm, which
cost him $780, He was able to dis
pose of four horses. and not only
made a saving on the feed bill, bu,
did the work of three teams with
the tractor, besides cutting wood,
hauling three wagons loaded with
produce to market. and doing other
things which made life easier, the
farm more attractive, and added pro-
fits. He calculated that the total
sum of all this amounted to $40o
the first year, or nearly hall the
cost of the tractor
For a number of years Sam lad
wanted to own some purcbreds. So
he purchased a bull and six COWS.
all in the prime, the total cost of
which was $3.50, He sold to neigh
Dor eight cows that wer: unccrta;n
producers, for 81 900, and a grade bull
to the butcher for Sll0 His saving
in feed, which the high producers
concerted into greater milk produc-
ton, was at once noticeable. The
bull made neat little $3.50 the first
few months. doing service right in
the neighborhood. The next spring
Sam had three dandy bull calves
and three hefers. He sold two of
the bulls for $l0O each, keeping ono
10 develop on the farm, and refIsed
an offer few months later Of $50
each for the heifers. He calculate
that the first year the six c. ~
yielded him $500 in offspring. BESIDE,
giving him an increased milk ptoG;.C
tion of thirty-three per ccat ut,r
the eight grades he sold. The tptai
profit from the bull and six Cow,
was Sl,050 the first year.
Just back of the barn is f--
acre field of land that is woa'rr
Sam tile-drained this with borro,.cd
money. He considered its producirg
value at about $50 per acre before.
but il has been made to grow vege-
tables to the valu eof $500 in one
year, although the total cost of
drainage was but SoOU, or SlU per
acre The land is handy to the farm
buildings. When there is a lul IN
farm operations, Sam or one of the
boys takes the two-horse cultivltor
back and keeps the vegetable crur
coming.
The remaining $500 was used 10
purchase a secondhand car. This
is equipped with a trailer. When
the family is not enjoying trip.
the outfit is used TO take the Sc
parated cream to market, as wei. IS
berries, vegetables and the | ke. One
trip to town netted Sam more than
$50 on ordinary stuff that many
farmers would let go to waste.
thinking there was no market for il.
or that they did not have the time
to take it to town.
The money that this investment
has made is fast being converted
into improvements about the farm
An additional silo has been erected.
This helps solve the high cost OF