Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-06-02

are mortgaged heaviest is Iowa,
probably the most prosperous agri-
cultural state in the Union. Farmers
of that state owe $1,000, 20o,00000 on
farm mortgages. The next states in
order are: Illinois, Wisconsin, Min
nesota, California, Nebraska and
Texas. These are our leading agri-
cultural states. The seven states
showing the lowest farm mortgage
Indebtedness are: Maine, Florida,
West Virginia, Nevada, Delaware,
New Hampshire and Rhode Island.
Maine has $40, 500. 10000 in farm mort
cages. These states can in no way
be compared to the first seven for
prosperity in agriculture. 1t must
therefore follow that the statesgwhere
farm mortgage indebtedness&i the
heaviest are the most prosperous
agricultural states OF these states
where farm mortgages are least,
Maine and Florida are really the only
two large states we'll suited to farm
ing. West Virginia is very noun
famous. The low showing of New
Hampshire, Delaware and Rhode
Island are principally on account of
their very small area as states,
while Nevada is the most sparsely
settled and most arid state in the
Union. Maine with its great farm
ing area, good lands and neasness
to markets, should rank well up
among the states in the matter of
money invested in farming
Many small farmers do not real
lie that they can obtain credit at a
bank. AS secretary of the Maine
Farm Lands Loan commission l find
that more applications for farm
loans are being made to this State
than ever before and I regard this as
a hopeful sign. l have long been in
terested in this subject and in 1917
suggested that the trust fund in the
State treasury known as the Re-
served Lands fund, and amounting
to over 100000, be made availa BILE
for loans to farmers. I had long
been interested in this subject and
found that Michigan, Wisconsin, and
many other states had invested
their school funds in farm mort
cages. 1t is one of the safest invest
ments known and has the effect of
putting the trust funds of the State
into a safe security and at the same
time benefiting agriculture, and, in
directly, all the people. Governor
Milliken and Mr.. Barnes. the House
leader, warmly supported this pro-
posal and l drew the present act
creating the Farm Lands Loan COM
mission of Maine. Mr.. Barnes re-
vised It and became the sponsor Tor
it in the House. 1t passed, becoming
Chapter 303, Public Laws of 1917.
The Farm Lands Loan commission is
an eX-officio organization. run with
out any expense for salaries, the
Governor being chairman, the State
auditor secretary, the other three
members being the commissioner of
agriculture, the State superintendent
of public schools and the land agent
and forest commissioner. 1t will
loan on first mortgage security to
farmers in Maine up to so per cent.
of the value of their land, such
money to be used for constructive
as follows: 1st. To clear
the land of forest growth; End. to
erect necessary farm buildings, barns
and silos; 3rd. to purchase live stock
and farm machinery and for any
other legitimate agricultural pur-
pose; and 4th. to refund an existing
The mortgagor has 20
years in which to pay the mortgage
and has three years before he is re-
quired to pay anything on the prin-
cipal.
Under this act where 1t was an
titcipated that advantage would GEN
orally be taken of it only a few loans
have actually been made. Sufficient
funds are available and the cost is
small, the act being designed to help
agriculture at a minimum expense to
the individual farmer. I sincerely
hope that an increasing number of
for loans will be re-
ceived. In the original act the inter-
est was fixed at five per cent. The
last Legislature changed the rate to
seven per cent. I was sorry to see
this change. It is true that five per
cent. was very low and an advance
to six per cent. may have been JUS
but seven per cent. is too
high, it seems to me. I hope the
next LEGISLATURE will rarefulIx ron