Show Farm Loan Banks Are Ready To Furnish 5 Per Cent Money The twelve federal land banks created created created cre cre- I under the federal farm loan ac act have ha just lust been established These I ban banks s will shortly begin lending mone money on long time amortization mortgages a es to the he farmers of the tho United States at 5 per cent interest Farmers to borrow under this L. L I loni wait are afro lC required 10 iu u ur Ul um WI ill al farm falm John associations consisting of at least t ten n borrowers each ach and being required to take at ut least 20 of or loans The mone money the farmer borrows is procured b by the thele sale le of bonds bomb issued against t the tho great t pool of nf farm mortgages which will be assembled assembled as as- by bJ these twelve federal land minks banks The puri ose is to tg attract millions mil lions of dollars now used for other to develop dc the n agriculture of the United States The o. o organization tion tiun of farm loan associations ou hout the country has progress progress- pro progressed ess ed to such a point the unqualified success s of or this system is completely complete I ly 1 assured Whether hethel this thi will ill reduce the cost of living li is a question of deep concern Frank R. R Wilson of the federal farm fare loan bureau burem was re recently Gently asked to discuss i this subject r I Ills His article is printed herewith It I By Dy Frank c R. R Wilson The new federal farm loan ac act will provide the farmer with means to Increase his l production it will allow al allow allow al- al low him more advantageously to market his products with this result re reo suit sult The consumers of at the United States will have a more steady and normal food supply and be less at atthe atthe atthe the mercy of ot the middle men Announcement has ju juat t been made b by the federal farm loan board that I I t the Interest rate to the farmer under under under un un- der the new operative co-operative banking system tem tern will be 5 per cent At present the farm loan indebtedness indebtedness edness of the United States tes amounts to about t and the average interest rate In the whole country Is about 74 per cent So with a n reduction l of the interest rate from 74 per cent to 5 per cent the new federal farm loan will make possible an annual saving to the farmers of the United States of at approximately But the actual saving of ot Interest will not be bo the greatest benefit to the farmers of th the United States State through this legislation The pres pres-I pres pres-j pres ent farm practices which tend to a t ai I reduction of efficiency and which the tha r ability to borrow and use more money will help to correct are Cultivation of more land than the operator can properly work ark Cultivation of ot too little land tomake to tomake tomake make up a profitable farm unit Uneconomical use of ot farm tarm labor Use of too little farm tarm equipment Keeping too little live stock on the theland theland theland land and a adoption Instead of or live Uve livestock livestock stock farming of a one-crop one system causing depletion of fertility Lack of drainage and clearing Failure wisely to use fertilizer Leasing of at land to tenants The federal farm loan system will distribute among the farmers of at the thi the United States during the first year of its operation not less than To make sure this money will wUl benefit benefit bene bene- fit a agriculture the farm loan act wisely I prescribes the purpose to fot which loans may be m made de Money may be borrowed under this act ct To buy land or to buy additional land where needed To pay par off ofT existing debts To buy live stock For buildings and fencing drainage drainage drain drain- age clearing or for equipment that will add to productivity l or permanent value alue The man now farming too much land would rather farm tarm a smaller acreage if he could raise tho the same crops and make the same profits from It IL With the credit available under the farm loan act he will be able to provide himself with equipment and improvements that will ill make it poa pea sible sable for him more intelligently to t farm a smaller number of at acres wf with the samo namo net profit Farmers of the United State know live stock is farming more permanently permanently per per- productive Uve than grain farm farm- ing ng The The- reason more of oi them have not been live stock farmers farmer is because because because be be- cause the they have not had the capital capita to o Invest In live stock So it is safe to assume that a good share of at this new capital will be used to provide more and better stock and so Increase the high cost of living unless uness some some- som the meat supply of or the nation The provision of capital to enlarge and nd Intensify their proc productive efforts will enable farmers more moro successfully successful successful- ly 1 to compete with comm commercial en en- Con Continued tinned from Page Paget Five Fire I PAn FARM 1 JJ LOAN AN BANKS Continued from Page One for tor labor which has been heen drifting rifting toward the city and which has as helped abnormally to increase the consuming population as compared with the producing population A supply of money for drainage and nd clearing will make millions of f unused acres available and the provision pro pro- vision islon of capital for the purchase of fertilizer will vastly Increase pro with no Increase in th the investment investment In- In vestment estment in land The farm loan act Is for t the use usef of f farmers and prospective farmers Credit Is given up to 50 BO per cent of ot I I the 16 appraised value of the land plus 20 0 per cent of or the permanent insured Improvements The whole Influence of the feder feder- federal federI al ai farm loan act Is tow toward rd bettering farming and since the land Is the foundation of the nations nation's food supply supply sup sup- ply this legislation ought to contribute contribute contrib contrib- ute greatly to the relief of ot any pos possible possible sible food But the mere production of a greater volume of foodstuffs will not be sufficient to solve the problem of thing Is done to cure the evils of distribution distribution distribution dis dis- dis- dis and give a more continuous supply ot of food rood to the consuming cen cen- I One of the causes of the high cost of or living 1 is the monopoly of farm products by food speculators Where farmers are dependent upon the sale sate of this years year's crop to get m money ney to meet this years year's living g expenses they are compelled to sell as soon as the produce Is harvested Speculators take advantage of at the farmers' farmers misfortune When a great number of farmers are compelled to throw their crops upon the market at harvest time tho the result Is an immediate inv im- mediate depression In prices This system gives the tho speculator an opportunity opportunity opportunity op op- op- op t to corner the output of the farm and hold it for a raise These exra profits Inserted between farmer farm farm- er and consumer consume are made possible because the farmers farmer's lack of credit compels him to sacrifice his crop at ata a time Ume when he knows It would be better to hold bold It Cheap money under the tho farm loan act Is intended to relieve this condition condition condition condi condi- tion not only by keeping the farmer out o of the he ha hands hand's of the speculator I but by encouraging him to divide his operations so he will have a continuous continuous continuous contin contin- income rather th than n first a feast then a famine Greater division tends to remove the chance element from agriculture and makes the farmer less a victim of weather conditions pests and disease o 0 o |