The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-01-16
RURAL CREDITS.
APPROP RIATION.
Big item FOR THE.
LOAN SUCCESS.
Vice President Faust of
Land Bank Declares
Great Stride Taken

The amendment OF the federal
farm loan bank act by which a $780,
600, 900 appropriation was made for
the purchase of farm loans, was hail
ed today by b. Il. Faust, vice presi-
dent Of the federal land bank of st.
Paul as equally important as the
original measure, in an address be-
fore the Tri-State Grain Growers
convention in Fargo.
I'm looking over the records before
/ left st. Paul yesterday, found that
on Jan. /. the farmers Of North Da-
kota had applied for $4,000, 900 in
100000; South Dakota about ST.
100000, an approximate total of S22,-
100000. 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
ton to be used for improvement pur-
poses on long time credit will have
stimulating effect on all kinds of
business. 1t viii make it possible for
everyone to do Just a little bit in
helping to win this great war.
The farmers, everywhere, are ask
ing the question, what will the in
terest rate be next year? Will 1t be
possible to maintain the FIVE per cent
interest rate or must we pay five and
one-haR 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
bonds shall 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 mort
gage 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 in
terest upon the mortgages. This is
certainly fair and the farmers are not |
Obiecting to this. They are not ask |
ing for special privilege. they do not |
ask for subsidies, nor are they OBJ |
jects Of charity. All that the farm |
ers have asked for is that proper |
government machinery be provided |
so that they can finance their bust |
ness in accordance with the needs of |
that industry. With the passage Of
the federal farm loan act, a good |
rural credit system has been given /
them, and IL the world conditions are |
such that private capital will not be /
able to buy these bonds at a low rate |
of interest, the farmers are perfectly
willing to pay the rate which the
of the money market make
1t necessary to pay.
Will Get Lowest Rate.
The fact that the bonds have the
guarantee OF the farm loan associa-
tions, are tax exempt, and are issued
under the supervision Of the federal
assures the farmer of
the lowest possible rate under exist
ing circumstances. Some of the
mortgage brokers have called this
class legislation. Was the passage
Of the National banking act class
Would the business men
Of the country want to go back to
the days Of private banking? The
total value Of farm lands In the Unit |
ed States is nearly one-fourth the to-
tai of our whole national wealth. The
annual output Of our farms is more
than one-haf the total Of our manu-
lectures. The improvement of aeri-
cultural conditions. benefits all class
ss OF people in this country. The
adoption OF a good rural credit sys-
tenn is I'm the interest of the nation,
and when class interest becomes ma
tional interest, then the charge Of
class legislation loses its logic.
War Demonstrates Value,
This world war has demonstrated
he value Of the business of farming
Is nothing else could have done.
Agriculture, the greatest industry on
sarth, Is called upon to muster all of
is resources for increased food pro-
iuction. The American farmer has
answered the call Of his government
Ind Is doing everything within his ,
power to product the food, So neces-
'ary at this time. The demands of ,
var have brought about economic ,
changes for which the farmer has for !
ears been struggling. The SUPER :
Using influence now exercised by the +
government is having most beneficial
meets upon agriculture. It is fore :
ng closer cooperation and more di- /
ect contact between the producers {
nd the consumer. The regulation /
4 prices, the direct marketing and :
he elimination Of gambling in foods
re reforms that every farmer in this '
ountry has long been looking for s
yard to. When peace is declared. we 1
ope to see many of these war time /
measures remain in force. for much | :
4 regulatory influence which Is nee {
ssary in time of war, is also Z
economically sound and necessary in | (
lines Of peace. The future Of the I
american farmer looks bright. The Z
dvances made during the past few 8
ears will make 1t possible for him +
Q develop that great industry and {
lay an important part during the
construction period which soon
aust come.
How fortunate for the American
hnA - |
he federal farm loan act. Had il
OF been for this system, which has
xtended millions of dollars worth of
id 10 the farmers during this period
distress our government would
Undoubtedly have been forced to -
ONE to the aid Of the farmer in Ii
0nle other manner, and ii would not n
ave had the financial machinery c
18th which to give the proper as S
stance. The federal land banks n
al hardly become established at the G.
me when this country was forced C.
ITO the war. Our government COM o
fenced urging the farmers to more @
no more production and they loyalty p
ssponded and redoubled their ef- Il
'rts. The gradual Tightening OF the o
Ioney market made It more difficult p
secure funds on farm mortgages. q
he federal farm loan system then N
roved its value in times Of a ma g.
onal crisis
Magma Charta Of Agriculture. "
In every state in the Union, farm bi
3 formed National Farm Loan as CT
)ciations. These associations an I'll
lied for loans through the federal
nd banks. On Dec. 81 OF last year. C
yer $500, 1000, 900 in farm loans had
sen applied for by the American ~
.rmers. 1t is difficult to say what
Ie situation would have been. had
lie system not been established at
is time With the passage of the