The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1920-07-02
farmers under certain technical con-

| farmers under certain technical con-
ditions. m fe4
The Gardner system of loaning
money to farmers as proposed by the
Missouri constitutional amendment
and the accompanying enabling act,
was more simple and had less red tape
to it than the present federal plan. 1t
did not necessitate the formation of
district borrowing associations to
guarantee the repayment of the sums
advanced. Each farmer borrowed di-
rectly, and had the privilege of re-
paying in annual installments, each
| payment reducing the yearly interest
and, of course, the principle. Nilsson
ri assumed no additional taxes
through the establishment of the state
land bank. The farm property offer
ed by the borrowers as security for
the money which was advanced, amp
| ly protected the commonwealth
against any possible loss. The cost of
the institution came from a small
amount paid in with the annual in
stallment and interest.
,Debenture Bonds to Raise Needed
Funds
One section of the land bank con-
stitutional amendment provided that
Missouri advance the institution its
first million dollars from any funds
available for the purpose, this sum to
be repaid the state from a sinking
fund created for that purpose, and
from which also came the running ex-
penses of the establishment. Loans to
60 DO
individually, and were not, in any
case, to exceed so per cent of the real
value of the property offered as Sc
curty. When the first 100000 of the
original assets of the land bank had
been loaned out an issue of $500,000 in
debenture bond became necessary to
further finance it. Such bond issues,
secured by notes and deeds of trust
on the property given as security and
all other assets of the State bank, |
were to be repeated each time another
100000 was advanced to farmers, to |.
provide continually working capital |.
and still leave 100000 of the origi- |
nal 100000 advanced by Missouri
as an available asset, and, also, the !,
ever-growing sinking fund. The !
loans were to run from five to twenty
five years, as suited the means and
wishes of the borrowing farmer. On a
twenty-five year loan the annual pay
ment of interest, principal, for bank
expenses and the sinking fund, on each
81 900 borrowed, was $65, computed
as follows: interest, 4.3 per cent
($43); for the banks sinking fund,
one-half of one per cent ($5); and as
a payment on the principal, II per
cent $50; a total of $65. ,,
In the state, outside of st. Louis,
the election of 1916, the proposed
constitutional amendment carried, the
farmers of Missouri voting solidly for
it. Unfortunately at this same gene
raj election an amendment creating
statewide prohibition was also sub
mittdd with the six or seven other mi
tiative propositions. In St. Louis, to
make it a certainty that the arid
movement was overwhelmingly de-
feated, and that there would be no
mistake about it, thousands Of liberal
electors voted negative on all amend
ments, regardless of the merits and
value of the other proposition. The
land bank amendment, after carrying
elsewhere in the state, went down in
defeat in st. Louis together with pro-
hibition. Then came the entrance Of
the United States into the world war !
and for the time being all endeavors
to resubmit the land bank creating
and financing movement was post !
poned. Some day, in the near future,
when the finances of the world are
more settled than now, Governor
Gardner may again interest himself
in his plan of providing real, cheap
money without red tape, on long de- |
ferred installments, to the farmers of
Missouri and put the needed consti-
tutional amendment over"