Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1918-01-11
THE LAND BANK FIAsco.
Hon. John L. Melaurin Explains the
MEANING Of the OPPOSITION.

medHin2 oI tHo SPP0sitious
Here Is a letter that Hon. John L
McLaurin has written to q friend on
the land bank situation and which
explains the whole night against this
institution that promises SO much for
the farmers Of the United States:
Bennettsville, S. c., Jan. S, 1918
Mr.. W. W. Smith, Nardray St. Green
vile. s. c.
Dear Sir and Friend:
You and I have worked together SC
long trying TO introduce a land bank
system for farmers and mindful OF
my promise to let you know my
opinion Of the present system. l an,
writing this letter.
do not believe the plan will work
without further legislation BY con.
gress. because the private financial
institutions and mortgage syndicates
are rendering II increasingly difficult
10 sell the land bank bonds.
The rural credit system is sound In
principle and has sold 80 millions OF
bonds at rates under those formerly
syndicate Of big Wall street and
Chicago bond houses. but as the gov
ernment banks were in fair way TO
take over the entire land mortgage
business, this syndicate has decided
not to handle any more OF the bonds.
Mr. McAdoo has caused a bill TO
be introduced making an appropria-
ton Of 100 million dollars TO buy
these bonds. which will make the
system effective in taking care of the
applications for loans already made.
II also proposes another one hundred
million dollars TO take care Of future
applications. The second 100 million
is TO be revolving fund, meaning by
that l suppose. that the banks can
buy up their own bonds and hold
them temporarily until they can be
sold to the public. The land banks
through this can organize their own
bond selling system entirely inde-
pendent Of moneyed plutocrats. who
combat every movement TO cheaper
money for farmers.
IL these interests can break up the
land bank and force about 100000
farmers who now have applications
on file to resort to the usual chan
nels. II would greatly increase the in
terest rates and that Is what they
want.
You remember what I went up
against with the state warehouse sys-
lem and what an outcry certain self
ish interests made against six per cent
money and cutting down eXorbitant
insurance rates. Mr.. McAdoo stood
by ME then and he Is going to save
the rural credit system. Personally.
think he Is the man TO succeed Will
son as president.
The fact that up to December /,
1917 $500 farm loan associations had
been formed comprising 100000
farmers, with applications totalling
about 220 million dollars. shows the
necessity. The present situation is
also a menace to low interest rates
for II the plutocrats could cause the
failure of our rural credit experiment
We would be at their mercy.
We farmers are asked to do tre-
mendous work this year. Labor is
scarce and demoralized by reason of
conscription and yet we are called on
to feed Europe as well as America.
would like to see congress author
iZe the United States treasury to buy
at least one hundred millions Of these
land bonds at per cent. What bet
ter security Is there than land? Our
land Is expected to furnish food and
clothing for the world. and the mar
gin is not sufficient for Shylock TO
continue to take both flesh and blood.
The fact that the government ask
ed these farmers to form associations
and make application for loans, is
equivalent to a promise to take care
OF them, and for congress to fail to
comply with Mr.. McAdoo's request, is
for agriculture TO have broken
government promise thrown In its
teeth. I am writing this for publi-
cation so that the farmers may push
up their congressman.
The farmers who made application
for these loans were told that they
would get the money at not over five
per cent, and 1 do not think the gov
ernment can afford to break faith
with. the aEmeCs, when they are
throwing extra heavy burdens on US.
and demanding increased production.
II the land bank system is to be Of
any benefit, 1t must be made inde-
pendent and reliable. so that n man
can rely upon II and plan his business
accordingly. 1t Is Impractical and
impossible on the present basis. as
much so as the lamentable and ri
diculous Wade Plan" for financing
cotton.
The warehouse idea was a simple
and practical solution Of the cotton
problem and government purchase
and sale Of bonds will establish on a
firm basis q real credit system. and
nothing else will.
Sincerely,
Jno. Lowndes McLaurin.