Fitzgerald leader enterprise and press. (Fitzgerald, Ben Hill County, Ga.) 1921-1964, 1925-11-26
FARM-L0AN NUT
SLIGHTLY CRACKED
But Real Relief Seems to be Far
Away

DESPITE the undeniable benefits to
be gained b ydealing with the Joint
Stock Land Banks, vast number OF
farmers are even today held firmly
in the grip of INSCRIPTIONS financial
interests. Eight years Of operation
under the Joint Stock Land Banks
unquestionably has had beneficial
result. Nevertheless it remains a
fact hiatt these institutions have been
able to develop not more than two
per cent of the possible business in
their field.
Despite this seemingly discourage
ing showing, however, economists are
springing up all over the land, each
predicting the emancipation of the
farmer, each pointing to statistics to
prove his future to be bright and
rosy.
DR.. David Friday, widely known
as an economist, recently told an
audience of farmers in Colorado
Springs that prosperity is surely at
hand. He explained that the acres
under cultivation have declined since
1910, and that the farmers who at
that time fed 6O,OO0,OO0 city dwell
lers must now feed 100000 city
folks. This, DIR. Friday believes,
will mean good prices and a resump-
ton in the value of farm lands.
Those of a more pessimistic turn of
mind point out however that the city
growth in population is the result of
diminishing population of the coun-
try, and so it does not matter at what
point of the compass the mouth opens
it has to be fed. Others still fail
to believe that farm prices are based
on the law of supply and demand, or,
if prices are so based, that the eco
nomic rule does not seem to increase
the net pocket book figures of those
who till in the soil.
Next we find Robert A. Cooper,
Federal Farm Loan Commissioner,
sounding the note of cheer for the
farmer. Mr.. Cooper says that the
Federal Farm loan system is saving
the American farmer $80,O00,0OO in
interest, which means that the farmer
has just that much more to spend for
other things. He contends that the
records show the prevailing rates on
farm mortgages average now a full
one per cent less than they did be-
fore the Federal Farm Loan System
came into being. All of which
prompts some farmers to scratch
their heads and wonder. Here and
there one is sufficiently emboldened
to say he is quite glad to read statis-
teal proof of his prosperity, and to
learn that the farmers now have a
surplus of $50, 900, 900 that they did
not have a few years ago, but he
wonders who is holding his share.
The farmer while in many ways may
be quite impractical in others is ex-
tremely hard headed, and it is diff
ficult to inspire him to dance on the
waxed floor of statistical prosperity
while he slips on the skidding figures
in his bank book.
Relief, Yes, But it Has Been
Too Spotty
The actual fact is that eight years
of actual operation on the part of the
Joint Stock Land Banks has re-
lieved farmers in some spots, but
the expansion of the systems opera
tions has been too gradual to make
material change in the coloring of
the agricultural picture up to date.
Conditions existing prior to the
creation of the Joint Stock Land
Banks were as impossible as they are
incredible. They have been so ex-
planned by no less a person than Guy
Huston, President of the Association
of Joint Stock Land Banks. Mr..
Huston shows picture of the typi-
cal country bank with a capital of
$4,000 and 100000 in deposits,
which means that the banker is I'M
able, under the law, to lend to the
promising young farmer more than
$3,000-ten per cent of his capital,
and then not for the purchase of
farm lands. Yet this banker is the
man on whom the farmer must rely
to finance him into that state of in
dependence he hopes to win by hard
work. If he has saved few hun
dred dollars he can buy his first farm
equipment. Then he must prevail
upon some land owner to rent him
piece of land. If the farm be real
economic unit, it will require at least
! $4,000 to $4,000 to finance the oper-
alton through the first crop season,
so that the young farmer is almost
whipped before he begins, unless he
can negotiate additional loans
through his friends.
1t will take the best farmer in the
world five to six years to pay back
his first loans, and own his stock and
implements clear of debt. Then in
another five or ten years he will have
accumulated sufficient funds to
make a first payment on a farm.
Once again it is essential that he bor-