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Show I FARM IKE I PLAN PROPOSED I Secretary Coulter Would Reorganlie I Entire ButlneM Under Better Financial Principles Chicago, Oct. 7. Reorganization of tho farm mortgage business so that the lender will bo the frjond and financial adviser., and guardian, It nCcd bo of tho borrower, was advocated advo-cated hero today by Dr. John Leo Coulter, secretary of tho United States commission on rural credits. Dr. Coulter spoke before tho first annual convention of the Farm Mortgage Mort-gage Bankers association. It Is essential es-sential ho declared that better financial fi-nancial principles be applied to farm mortgages. Two leading principles, he said, must guldo such loans. First the amount and period of tho loan must be adjusted to tho purposo for v.hlch tho loan Is required. Second, provision must bo made for tho extinction ex-tinction of tho loan In annual installments. "Of tho 6,360,000 farms In tho Unl-. Unl-. ted States, about 4,000.000 are operated oper-ated by their owners and of theso 1,-327,000 1,-327,000 are mortgaged" Dr. Coulter said. "Under the general practice, these mortgages are mado to run from three to five years. I urge that the length of the loan should v.-y with tho purposo. "If tho loan Is made,lo equip tho farm with machinery or live .took, U should run from flvo to ten yean. If the purposo is to construct liulld-lags, liulld-lags, tho loan might extend' ovor n period of fifteen years. If the purpose pur-pose Is to purchase tho farm tho loan might extend from twenty-Ove as for thlrty-flvo years. "As to my proposal that farm loans should bo pnld .off In annual Installments, Install-ments, tho farmers revenue Is pio-duced pio-duced In this jyay and unleu the far- finer gradually reduces the loan bo Is almost suro at Its maturity to ask for a renewal. Thus farm Indebtedness Indebt-edness plies up." Government Should Handle Leans Investors might not bo satisfied Oth loans paid on the InsUUmcr.t plan, Dr. Coulter poln'od ou: and to Btablllzo the Incomo from such an Investment, holding coi . i ntlonn might bo rormed to a.i'inb'e such loans nnd Ibuo bonds to the public. Control of such business, ho Fnid, should bo vested In tho ft-lcrnl government, gov-ernment, under which control tao wholo farm mortgage business might h( placed on a sound and efficient basis. Dr. Coulter said that ho was strongly opposed to direct government govern-ment loans or government subsidies In connection with farm mortgages. Sessions of tho association will continue over tomorrow. Dankers from all parts of tho country are to take pnrt in tho discussions." |
