The Covington leader. (Covington, Tenn.) 18??-current, 1921-06-02
TELLS ABOUT FARM
loans. EXPLAINS ACT


Development Of the alluvial sec
lions Of Mississippi, Louisiana, Ar
kansas and Tennessee through re-
vival Of the operation Of the federal
farm loan act on a greater scale
than that which was attained during
the crucial period of the late war was
predicted in an address delivered in
Memphis at a meeting of $50 mem
bers Of the Southern Alluvial Land
Association by Walter Howell, presi-
dent Of the Federal Land Bank, Of
Louisville, KY.
Howell explained in detail the
workings of the farm loan act, show
Ing how farmers in any locality, by
uniting in farm loan associations,
can obtain the funds with which to
place their enterprises on a paying
basis.
The general purposes Of the fed
eral farm loan act, Howell declared,
were to lower and equalize the in
terest rates on first mortgage farm
loans with the privilege Of repay
ment in installments over a long or
short period of years, at the option
of the borrower; to assemble the
farm credits of the nation so that
they might be used as a security for
money to be employed in farm de-
velopment; to stimulate co-operat-
i've action among the farmers and to
make it easier for the landless to
acquire land and to provide safe and
sound long term investments for the
thrifty.
Summing up the situation now ex-
listing in agricultural industry, How
ell expressed his disbelief in the eff
ficacy of the emergency tariff law
and the war finance corporation as
remedial agencies. The emergency
tariff law, he said, is intended to cur
tail the importation Of farm products
into this country, while the war fl
nance corporation is intended to fl
nance the expectations of farm pro-
ducts into foreign countries.
what the farmer actually needs"
the speaker asserted, sis someone to
loan him real money in order that he
may liuuidate the indebtedness which
he incurred for the purchase of lands
for agricultural purposes, indebted
ness which now is held by banks and
private money lenders who are. ask
ing that the notes be paid.
"The farmer needs real money
with which to purchase necessary
equipment, fertilizer, and so forth,
50 that he may successfully cultivate
his farm" Howell continued. "He
needs real money so that he may
make necessary improvements on his
farm, such as comfortable house,
good barn, good fencing, tilling,
and so forth. He needs someone who
will loan him real money to liquidate
the indebtedness that he incurred
during the past year for any of these
purposes and which yet remain I'M
paid.
with ample funds available for
this purpose" the speaker concluded,
''the federal land banks could best
serve the agricultural interests Of
the country bv loaning to the farm
ers, on long terms, money with which
thew NAV liquidate their indebtedness
10 Cne DaHkeT. Jle mSIcHdHI anu tHclI
other creditors"
The federal land banks Of the
country have but recently closed the
sale of $40, 900 900 Of bonds. ard this
money, Howell said. world be suf-
firient to meet the probable demands
Of the farmers for the present.
Following his address. Howell de-
voted some time to answering nerti-
nent questions from members of the
association. all Of whom were greatly
interested in his remarks.