The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-27

holder.
But. the interest has to be
paid, and is paid indirectly out
of the national income-iust
as interest is paid to j. P.
Morgan and Company on the
, bonds of American industry
that it holds.
4 A survey Of the United Press has
shown that the government, since
1916. when it departed from its
traditional policy of keeping out OF
/. business with the launching of the
United Shipping board has loaned
or invested in American business
$3,096, 329 ,687.01.
, Through the Reconstruction Fin
ance Corporation, the home loan
I banks and other agencies it is ready
to invest a potential $4,569, 1854
additional That would make an.
I aggregate investment of 1864, 515,-
20l.,01
One Half of One Per Cent
To pay interest at 4 per cent on
such a sum will require $306,580,-
! 608.04 annually. The national in
come, according to the department
+ of commerce, for the year 1880, was
100000, 0000 900.
The 1906 $50 ,608.04 required for a
a per cent return on the govern
. ment's share in American business
, is one half Of per cent of that
. sum.
Perhaps the $l,848,841 200 mort
gage the government has on agricul-
ture can be reduced to terms more
easily understood.
In financing agriculture the gov
ernments investment stands like
, this:
Outstanding loans to farmers lex
elusive of farm mortgages)-S96,-
$780, 200.
Loans for farmers co-operatives
+ ,(arm board $1,000 100000.
Loans on farm mortgages (farm
/ loan board)-$1 1856, TOT 000
intermediate credit bank loans
Garm credits)-$110,606,000
Invested in grain and cotton stabi-
lization farm board)-S315,O 900, 900.
. Total-$1, 1888 200.
/ That sum is equal to per cent
. of the aggregate value of all the
farm land in the entire United
States. The department of agricul-
( ture estimates that the farmer is in
debt to an aggregate of $9,468, $685.
600.
Fifth of Loan Business
I On the basis of that figure,
roughly states, the government holds
! one-fifth of the entire loan business
OF the agricultural industry.
A glance at what it will require
! to maintain this investment of the
government in agriculture, may be
even more revealing.
: If the government is to get 4 per
, cent interest on its investment, it
will require $73, 953, 648 out of the
nations farm income to pay it.
The aggregate income of agricul-
ture. including the live stock indus
try and the income from forest pro-
ducts Of all kind, in 1929, (the
latest department of agriculture fig
ures available), was Sl0,146,720 900,
which means that it will take three
8 quarters Of 1 per cent of the total
cash income of agriculture, livestock
and forest product industries to pay
, the bill
Beans, Peanuts Can DO II
Stated differently, it means that
/. out of every $4,000 of agricultural or
allied cash income, S1S.75 will so
directly or indirectly toward making
that interest payment.
If the entire bean crop Of the
United States were turned over to
nav the interest, it would fall about
S4.OOOO 900 short The entire peanut
crop would be thrown in and would
lust about make up the difference.
If paid in wool that interest bill
due the government would take
nearly the entire crop, or, if paid in
hogs, it would require, every tenth
. hog raised each year
Even though Il is spread over the
entire agricultural industry the hog
raiSer's contribution to his silent,
financing partner comes to $685.
go That is equivalent to the hog
s raiser contributing one out Of each
1873 of his hogs to this purpose.
The government in all of this
financing of business. specifies from
, time to time that it is temporary
measure, designed to relieve a tenn
+ porary situation. The money all is
TO be paid back and the partnership
, hquidated.
Where VIII We End?
But the sums involved are large.
Agriculture, the railroads, many
other enterprises are not yielding
much profit from which borrowed
funds can be paid back at present.
Many believe the prospects for some
OF these-notably the railroads-may
not be bright.
Not every one is convinced that
repayment Of all this money is to
be expected.
To what that will lead is an in
triguing question-not to be an
swered here.
IN surveying the governments