The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1918-11-15
FEDERAL LAND BANK
CAUSES HIGHER VALUE
TO LANDS OF FARMERS

the Federal Land Bank, although i
Is less than two years old. Ideas
aims and purposes of many individual
farmers have also been stimulated to.
ward a higher level because of the
coming of that government agenc,
with its mission of financial aid to the
farming element of the nation. Evi.
dence supporting these statements is
found at the Federal Land Bank al
St. Louis:
More than one instance of a Young
man who has chosen farming as his
life work and set out to make a sue.
cess of it has found his best footing
for that purpose in the Federal Land
Bank, said Herman w. Danforth
president of the st. Louis Bank. "The
average young American farmer is of
the right sort of material for valu-
able citizen and happy family man.
lie WILL quickly see and take advan-
tage of a chance to extend and de-
velop his land interests when it comes
to his attention in the right way.
Il call to mind several instances
where this chance had been found by
young farmers in the Land Bank.
They are all much alike. The men
wanted to amount to something in
their respective communities. Their
flrst desire was to get "A farm worth
while and show that they could make
II pay. Then they wanted to stand as
leaders for progress among their
neighbors. The Federal Land Bank
gave the opportunity for both, though
IN turning to it the young men at
hrst saw only the chance to own a
farm.
Double Reward Gained
I'VE were asked by these young
farmers to send particulars of how a
loan might be had. Later, when thew
mad satisfied themselves that the bank
was all that the government had de-
signed 1t to be, a real aid to the farm
er, they set out to interest neighbors
and friends and to organize a farm
loan association. In most cases the
organizers were, naturally, made sec
retarles of the association, looked up
on as authorities in all matters con-
nected with it and thus recognized as
Leaders. That is a fine start in one
direction, isn't it? 1t is, in fact, more
than THAT. They are held in esteem
as having done a great work for the
entire community.
Gas for their own material benefit
those young men are today established
on farms large enough to hold their
best attention and effort, they are
well equipped with home and out
houses and all the implements for
successful cultivation and many of
them are heads of comfortable and
happy families. The money they bor-
rowed to put them in this situation
gives them no worry. They know
they can pay it back within five years
If they choose, or they can take forty
years to do so. Not one of them will |
md 1t necessary to carry it much |
longer, If any, than five years, for |
they have entered upon what is for \
them new career of making the soil |
work for them for all it is worth. And
their neighbors have caught the same
spirit and the world is better off for
the ambition and effort of those young
men. The same chance exists for
men who are not young, and there are
without number where il
may be taken advantage of.
FIXED higher values of land as
result of the Federal Land Bank is
not matter difficult to understand.
The bank has simply removed the ne
cessity for sacrificing land because
Of some crisis that hits every one at
some time or other and cannot be
avoided by ordinary foresight. 1t is
not affected by the unsteady money
markets as are the commercial banks,
which may let out their money TODAY
at 6 per cent, and next week charge
8, with Tightening up of security de-
nand that puts it beyond the average
farmer. There is no such thing as
bonus or commission charge for loans
from it.
Dividends to Borrowers
The Federal Land Bank gets it's
money on the best type of bond in
he world, which, because of the gov
srnment's connection with it, is not
,axed and therefore is sold, under
government supervision, at the low
,st rate of interest. To this interest
a'o 10 duueus Solely lOT Cne purpose |
IT paying operating expenses of the
'ank, one-half of per cent, and that
S all the borrower has to pay for it.
Furthermore, whatever surplus re-
mains of this one-half of / per cent
S to be. returned to the borrower as
dividend on his stock in the bank.
to 5 per cent of the sum
borrowed by him.
with money thus available at a
ow rate, for a period of time that
overs the average human life if de-
ired, the natural effect is to make
he farmer independent and more than
ontent in his position. He knows
hat he can go ahead with ambitious
'lans for developing his land without
ear that a creditor will take it away
rom him.
"In effect it is much like the Build
ng and Loan Association, through !
which thousands of men who other
wise would have been of the renting J
lass are owners Of homes. Through
ne bank a tenant farmer may become
farm owner in the same way. If
he Federal Land Bank can take rs
er cent of the tenant farmers out of ,,
hat class and put them among the
$ N