Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1920-06-11

$4,000 earnings in February, 1920.
Now, you will agree with me that
there is necessity for better lone
time credits for farmers. The law
has provided two methods. Many
farmers will prefer to join local
association and to assume their share
of the responsibility and expense bun
thousands of the best farmers are
indlvidualists and prefer not to join
an association. AS an illustration,
wish to state that in our bank we
DC not make a loan to farmer II
he is eligible in q Federal Loan Bank
unless he can show US some good
reason why we should make the loan.
Many times the explanation is made
by applicants that religion of racial
prejudice excludes them from men,
bership in farm loan association.
Occasionally we get reports that a
man has been refused admission be-
cause of some neighborhood feud or
some family interferences
Now, we must keep in mind that
the purpose of the Federal Farm
Loan Act is to provide capital for
agricultural development. The farm
err who is an individualist and does
not wish to cooperate is no less en-
! 80 - 0d nxsff Sfxy 70
avail himself of the privileges of the
| Federal Farm Loan Act than is the
farmer who wishes to cooperate.
The products of his farm are just
as essential to the welfare of the ma
ton as are those of the cooperating
farmers and it was certainly not the
intention of the trainers of this Act
to compel any farmer to become a
co-operator against his judgment or
convictions. The farmer needs every
credit facility possible to give him.
The elimination of Joint Stock Land
Banks would in no way assist the
other arm of the service but could
only result in throwing back to the
gage brokers a large portion of the
! farm mortgage business. AS an IL
lustration let me say that in one
county in Iowa | am creditably in
formed, one mortgage broker sent
his man there and in two days driv-
| ing received applications for $780,
600 of farm mortgages at six per
cent for five years and a 10 per cent
cash 900 commits
sions in two days driving! This
was when the Federal Land Banks
were in the market for loans but at
that the Joint Stock Land Banks had
been forced to withdraw from the
loaning field. Had the banks seen
quite possible that the Joint Stock
Land Banks would not have made a
single one of the loans included in
this 100000 block but it is also
true that the mortgage broker
would not have been able to have
demanded and the farmer would not
have paid the 10 per cent cash COM
mission had there been in that coun-
ty any man making Joint Stock Land
Bank loans without commission.
The mortgage brokers would have
been content with one per cent or
two per cent which
would have shown them a good prof
it and saved these farmers $4,000
to $4,000.
l submit to you gentlemen that 1t
is economically wrong for farmer,
or any borrower, to be compelled to
hazard his life savings by being re-
quired to sign a note that he knows
he cannot meet or agree to make a
payment that there is no possible
chance of his making, and that is
Just what he was compelled to do
, under the old five year mortgage,
and this mortgage was equally un-
satisfactory to the inyestor-except
F., it be to the insurance company or
large corporation An investor
> with say $4,000 with which to pur-
: chase farm fortgage might wish to
/ realize on his investment, yet, while
he had loan that was perfectly
} good, the only market for that loan
S was with the house through whom
r he had purchased it, 1t was not &C.
, ceptable as collateral at his OWE
r bank to provide for a temporary
I emergency and then the farme
t might wish to pay it off in whole
e or in part at a time when the in
b Hestor did not wish the none,
a turned back to him
e l believe that Joint Stock Lane