Evening star., 1937-05-30
By Lucy Salamanca.


Il 9th of May, and it might il
1t chose, stage a real celebration, fol-
it has something to celebrate. In
creased farm prosperity; growing
farm incomes; increased collections
reduction of farmers debts; more ex-
tensive tenancy of farms; rehabilita
ton of farm properties and good
sturdy evidence of a restored rural
morale. The Farm Credit Administra-
ton, as matter of fact. might well
celebrate the fact that it yanked
agriculture right up onto its feet
washed its face and sent it to town
Take the matter Of the gain in
farm income alone. The 1887 total
II the rate continues. will exceed that
Of 1929. Benefit payments raised the
farmers total income in March to
s7O7 100000, which figure represents
an increase of 36 per cent over the
$500 100000 received in the same
month last year. The total cash
farm income in the first quarter
amounted to s1,945 ,000,0 ,000-au in
crease Of % per cent over year ago.
III Vic pl0-uS pINSSIOil gNhl VI iCG .
farmers incomes amounted to Sl0,-
479000,O00, and if increases are main
tanned during the remainder of 1887
this year bids fair to outstrip that
high peak of rural prosperity.
All this. of course, is bound to be
reflected in the ledgerS of city mer-
chants and manufacturers everywhere.
For the first time in many years the
farmer can buy his wife a new Sum-
mer hat and treat the family to the
latest model car, secure in the happy
knowledge that the land is again
yielding enough to keep him square
with the Farm Credit Administration
and indulge in such luXuries.
The old farm itself is coming in for
Its share of the gains. Roofs are
being repaired that have hung bat
tered and inadequate these many
moons Barns are being mended.
Porches and additional rooms are
being built onto the houses. White
paint and shining metal gleam again
along the rural routes. 1t looks very
much indeed as if, under the able
administration of w l. Myers, gov
ernor of the Farm Credit Administra-
ton, the farmer is coming at long
last into his own.
On this birthday, too, the Farm
Credit Administration might celebrate,
with good reason, the fact that 806.-
185 loans, amounting to S2,l6S, ,49S, ,034,
were made to the farmers Of this coun-
try from May, 1898. TO April 80, 1887.
1t is worthy Of special attention that
under this program only about one
third of the rehnancing was done
from appropriated Government funds,
while the remaining two-thirds was
loaned under the system of cooper
ative banks inaugurated by the able
young Gov. Myers. AS Gov. Myers
points out. the Farm Credit Ad-
ministration is not to lend Government
money but to aid farmers in obtaining
access to the investment market" "
EOUR years ago, when an executive
order brought under one organiza-
ton all Federal agencies concerned
with phases of agriculture credit, it
Is doubtful If the most optimistic in
that new set-up could have hoped to
achieve those things which have been
accomplished in this short period of
time. Those we're very dark days for
agriculture, with mortgage foreclos-
ures the order of the day, and news
stories from all quarters telling of
riots and conflict while farmers stood
off sheriffs. come to foreclose their
homes and deprive them of livelihoodS
that they were poWerlesS to retain,
through no fault of their own. Banks,
collectors and creditors everywhere
were pressing the farmer for payment,
and the steady stream of foreclosures
was not only completely destroying
values, but was, as we'll, serving to
demoralize the life of the rural COM
munities.
Stepping into the picture, the Farm
Credit Administration made loans to
farmers, in cases where debts were
excessive, only in amounts one could
expect to repay under normal con-
ditions. This had a salutary effect
upon private creditors, who made
voluntary scale-doWns in farmers
debts, at the prospect of cash payment,
of more than Sl00.000,000. Long
term debts of the farmers were re-
financed, and in 1886, the interest
payments Of borrowers were reduced
over s7000O,0O0 in the year, over
what they would otherwise have been,
about half of this representing a
permanent savings to the farmers.
With the aid of temporary subsidies
from the Government, the threat of
foreclosure was removed and debts
were worked out. The farmer got
his first foothold
With the recent report of improved
incomes of farmers, comes also word
of the free movement of farm proper
ties.
The young governor-noW in his
early 40s-who left a Cornell pro-
fessorship to take over the financial
reins of an involved and delicate
situation, states: Farms today are
being sold and are being purchased
by young men with faith in the future
of farming. They are rapidly re-
gaining confidence and younger men
are becoming farm owners"
Along with these constructive indi-
cations, delinquency of mortgage bor-
rowers has declined steadily in the
past four years. In 1888 delinquency
was up to the SO per cent mark; now
it is no more than 13 per cent. An
other way of saying the same thing
is that whereas in 1888 only half were
in good standing, now 81 per cent
Of the debts are in good standing
THE s2,OOOOOO,O0O loaned out to
farmers helped other businesses
tremendously Hundreds of banks
were enabled to open and to operate
when farmers debts were reflnanced
The equivalent of 100000 to $500, ,0OC
was thus made available in every
one of the agriculture counties in
the United States-an invaluable i'm
petus.