The Bowbells tribune. [volume] (Bowbells, Ward Co., N.D.) 1899-1969, 1918-01-25
Vice President Faust Of Land
Bank Declares Great : ?
Stride Taken.

farm loan bank act by which $780,
100000 appropriation was made for
the purchase Of farm loans, was
hailed today by B. F.. Faust, vice
president Of the federal land bank
Of St. Paul as equally important as
the original measure, in an address
before. the Tri-State Grain Growers
convention In Fargo.
'1n looking, over the records be-
fore I left st. Paul yesterday, I
found that On Jan. 1. the farmers OF
North Dakota had applied for $12,-
100000 in loans, not yet closed; ;
Minnesota, $3,000,000; South Da,
kota about $7,000,o00, an approx.
mate total Of $22,OO0.0O0. You
are now sure Of getting your money
On all these loans when approved -
said the speaker. This is Of vital
personal interest not only to you,
but to the business men, and to all
classes of society. This amount OF
new money coming into this Sec
tion to be used for improvement
purposes on long time credit will
have stimulating effect. on all
kinds Of business It. will make It
possible for everyone to do just a
little bit In helping to win this great
war.
. The farmers, everywhere, are
asking the question, what will the
interest rate be next year? Will 1t
be possible to maintain the five PEI,
cent interest rate or must we pay
five and one-half or ultimately six
per cent on our farm mortgages?
The law provides that the funds
which are used to loan the farmers
must be realized from the sale of
bonds and that the rate of interest
borne by the bqndssshall not ;exceed
one per cent less, than the interest
rate on the mortgages.
Question Of Sale
'The rate, therefore, which the
farmer will have to pay on his
mortgage depends upon the rate at
which the bonds can be sold. In
other words, the condition Of the
money market will determine the
rate of interest upon the mortgages
This is certainly fair and the farm
ers are not objecting to this. The!
are not asking for special privilege
they do not ask for subsidies, no.
ARE they objects of charity. All
that the farmers have asked for: +
that proper government machinery
be provided so that they can finance
their business In accordance with
the needs of that industry. With
the passage of the federal farm
loan act, good rural credit system
has been given them, and If the
World conditions are, such that pri
svate capital will not be able to buy
these bonds at a low rate of inter
est the farmers are perfectly WILL
ingsto pay the rate which the con.
ditions Of the money market make
it necessary to pay.
win Get Lowest Rate
:..The fact that the bonds have
the guarantee of the farm loan as
sociations, are tax exempt. and arc
issued under the supervision oftht
federal government, assures the
feamer Of the lowest possible rate
under existing circumstances. Some
Of the mortgage brokers have called
this class legislation. Was the
passage Of the National banking act
class legislation! Would the bust
sftlii III y men Of the country want to
go back to the days Of private
banking? The total value Of farm
lands ID the United States is nearly
one fourth the total Of; our whole
national wealth. The annual out
put Of our farms is more than one
half the total Of our manufactures.
The improvement OF agricultural
conditions benefits all classes Of
people IN this country. The adop.
stion Of a rural credit system is z in
the interest Of the nation. and when
class interest becomes national In
terest, then the charge Of class leg
fSlation loses it's logic.
War Demonstrates Value
This world war has demonstrat-
5ed the value Of the business OF
farming as nothing else could have
done. Agriculture. the greatest
q Industry on earth, is called upon TO
c,ontin1ued q pase 81 . .11