The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-04-25
GEORGIAN HAS
FINANCE PLAN
Says u. S. Could Lend
Farmers 10 Billion DOL
lars, and Make Money
By RALPH J.. SANDERS
United Press StnH Correspondent

ATLANTA. Ga. April %
(UP). Grorgia's leading apple.
grower. who describes himself rs
Il "dnt farmer has outlined Il
plan whereby. he claims. the gov
eminent can issue $l0.OO0,O 0O.-
COO sccurncd new money, loan
money TO farmers without inter-
est. and make Il profit.
Louis l.. Magid owns $4,000
apple trees near TaIuIah Falls in
the Blue Ridge mountains in
Northeastern Georgia. His corpo-
IA ion, Magid Of TaIIulah, Inc.
has the colorful slogan. Home o.
the Big Rod Apple" with only
fair weather conditions, Magid OK.
poets an apple harvest of consid-
crabIy more than 100000 bushels
Of hig red apples this year.
The apple growers plan already
has been outlined to President
Roosevelt and Secretary of Treas
uy Woodin. 1t provides for con
2ressiona! creation Of Il federal
agricul ural bank" which would
loan money to farmers on security
of mortgages ON land and person
al property on Il basis of at least
80 vcars time.
The farmers would repay tho
loans at the rate Of two per cent
Of the principal. constituting both
principal and interest. per year.
thus completing payment IN nifty
wears. Magid points out that. on
the basis Of repayment; of two per
cen. annually for 80 years, if caca
annual payment was deposited IN
Il general fund earning only two
per cent compound interest, cacH
$1,000 20 loaned and repaid would
aggregate approximately $l.IOO
at the end Of the half century.
Thus the govcrnmcn. will have
provided farm relief without cost
to the farmer and at the same
time have earned 10 per cent
profit in 5O.ycars 90 pay costs OF
adminiS ration. absorbing any
losses. aud he remainder to en-
ranr" the general fund of the l.
:. treasury.
Now the farm mortgages az
ccptcd a. security for loans by the
federal agricultural bank would be
drposiicd with the federal treas
uIy. which in turn would be au-
horiZrd to issue currency or
farm dollars in such denomina-.
tiorS and amounts equal To tha
face value of farm mortgages de-
posted.
The apple grower believes that
as much as %lO.OOO.OOO, 600 in
farm money" might thus be
placed in cirruIation--dollars that
"wouIh not bc phonry." Magld AS
serta. "bus would be backed by
the highest type of security
farm lands that produce food an!
law materials for the industrial
areas" -,
Magid believes that his plan will
provide proper and sound financ-
inc for farmers without adding to
the burden of the American tau
pavcr. and that revived prosperity
10 farmers vii. bring prosperity
in turn 10 all industries.
The originator Of the PROPOSE
ton poin'cd out that the farm
dollar" would have rs much Secur-
ity behind it rs n federal reserve
note which now is secured by 6O
pcr cent commercial paper and 4o
per cent gold.
Macjd further suggested that
thr government might better prlnC
dollars secured by farm mortgages
than print dollars without any Sc
curi,y except tie faith in the gov
ernmcn. OF the United States,
such a. now is proposed. though
he fastened to add that the faltth
in the L. S. government probably
was about AZ good security as
anyone could ask.
An amendment to the federal
agricultural hank form loan farm
dollar" bill would crea.e a crop
insurance company to protect ihe
farmers from hazards Of losing
pa,t m. all Of crops through ur-
,cayoi,ahlr frosts. drought, hal
and windstorms or floods. by Coz
Letting Il reasonable premium from
each farmer. ..