Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-04-11
HELPING THE FARMER.
Land Loan Bank Saves Them lmmens
Amount of Interest.

Land Loan Bank Saves Them Immense
Amount Of Interest.
A saving in interest on farm mort
cages Of more than $250,000,000 year
were these mortgages all handled
through the federal farm land banks
on the amortization plan was the as
founding statement made by David A.
Houston, president of the Federal Land
bank in Columbia, few days ago.
Statistics show that about 40 per
cent of the farms Of the United States
are under mortgage and the es-
timated amount Of Indebtedness is
placed at sc, 900, 100000. For this mon
ey the greater portion of farmers pay
an interest rate Of 8 per cent. The
federal land bank makes loans at 8
per cent, and under the amortization
plan a saving of S624.72 on each $1,000
for the SO year period is effected.
The annual saving would thus
amount to $2S4,305,555.55 or an amount
greater than the first estimated cost OF
the Panama Canal, which up to its
construction was the greatest financial
enterprise ever undertaken by any ma
ton, Mr.. Houston points out. This
would mean a saving to the farmers on
land mortgages alone $54S.41, or $9.41
a second. Summarizing his address,
Mr.. Houston said in conclusion:
There are about 100000 farms
in the United States-40 per cent, or
100000 are under mortgage. This
mortgage debt, or the 40 per cent OF
the whole amounts to about S6,OO0,-
OO0, 900. When you recall that under
the amortization plan, which is the
required method Of liquidation under
the federal farm loan act, that there
was a difference in favor Of the banks
over the same period at the same rate
on a $1,000 loan of S624.72 as against
the old way, or no amortization, this
means that If this S6,000,000,0O
could be eventually f1oated by the fed
eral land rates Of interest and long
periods of payment or liquidation, that
the farmers of the United States would
save for the added comforts OF home,
education Of their children and their
general efficiency, as the only wealth
producers Of the nation, s3,74S, 600
in interest alone in SO years. If we
withdraw the comparison as originally
stated and substitute s per cent for 5
per cent in our first analysis, which
as all must agree. is not reasonably
prohibited by past practice, then the
farmers would pay for 36 years at .
per cent against 5 per cent for IKE
period, the inconceivable and mental
ly intangible excess sum OF SlO,2S5,-
900 900. ITO him that hath, sounding
forever the death knoll Of him that
hath not"
"JJnder the conditions described in
the past analysis between the $1,000
loans each at per cent for 36 years,
but had from different sources-the
one amortized, the other at straight
interest and principal payments at
will, you will recall that there was a
saving of s624.72 by the amortization
plan. Estimate the farmers mort
gagged Indebtedness at $4,000, 100000.
On this save $624.72 in interest from
the liquidation of each $1,000 through
the period and assume that per cent
is more nearly. the point Of practice,
and what does it mean? 1t means that
federal land banks, on a basis or b
per cent interest s6,000,000,000 amort-
lied for SO years, would save to the
farmers of this nation who are paying
S per cent interest. For one year,
s2S4, ,3O5, ,555.55; for one month, $23.692,-
1882; for one day, S7Ss,737.06; for one
hour s32,905.7O; for one minute
S54S41: for one second, S9.14.
1.-The saving in one year to the farm
ers in interest alone would be an
cost of the Panama Canal, which was
one of the most gigantic financial en-
terprises ever undertaken up to that
time by any nation. AS it seems to
me, the federal government has sought
in the passage of the farm loan act
to grant to the wealth producing fac
tor of the nation more abundant op-
portunity to carry out successfully It's
nlons to entrust to it's ample capital
and to point out the way to its sue
cessful manipulation. AS it seems to
me, with the perfection Of this law,
the Promethian vulture-the money
shark. that has daily sapped and con-
sumed the vitality Of the nations
great life sustaining factor has been
forever driven from the body of an
easy prey, and that out Of the gloom
of the past the farmer may conf
IDENTIFY hope for the sunshine Of to-
morrow"