s The Commoner TOL, 16, NO. 9 30 . y f KK I The Federal Rural Credits Act ! Tho fodoral rural credits acl Is ono ; of tho outstanding 'achievements of Uio present congress. Why are averago interests rates paid by American farmers on raort gago loans one-third higher in tho stato wliero they aro lowest than the averago rates paid by tho Gorman farmer, and hi sorao states more than twice as high? Because farm loans in this country aro made direct from tho individual lender to tho Individ" ual farmer, run for only flyo years and aro subject to heavy foes for ap praisals, inspections, etc., on account of tho short time, odd amounts and lack of system, The now act provides for tho form ation of twolve land banks. The capital will be subscribed by tho na tional government, if not taken otherwise. (This raoroly Insures tho starting of tho banks; a like provi sion was inserted into tho fed oral rcsorvo act.) Farmers desir ing farm loans will form farm-loan as8ociationsvWhich will borrow for their mombersXfrom tho farm loan bank, tho amount: of their loans. Tho farm loan association must consist of at loast ten mombers, who must bo borrowers. The association wi elect officers, pass on the security of tho land offered, make appraisals and inspections. Bach borrower will sub scribe for stock in tho farm loan bank to tho amount of G por cent of his loan. This will not bo paid in cash, but will bo added to tho amount of his loan, and when tho loan is paid off, the stock will be repurchased from him. Tho money tho farmer borrows will at first bo supplied from the capital stock of the farm loan banks. Tho least amount to ono borrower will be $100, tho greatest, $10,000. As soon as tho farm loan bank makes loans enough, it will Issue farm loan bonds, secured by its own resources, by tho mortgages it holds, and by a further liability on the part of tho borrowers. These bonds will bring in tho capital necessary to make fur thor loans. Tho loans will run from flvo to forty years, and will be met by payments at stated intervals, which will include the interest, the expense of administration and a percentage of tho principal. It is probablo that tho total payment will not exceed tho interest payment now required in most parts of tho country. Tho farmer who borrows today borrows for five years, and his whole loan comes duo at once. Tho farmer under tho now law will borrow for forty years if ho so desires and his loan will como duo in many small installments. Tho farm loan bonds will bo free of all taxes, just as United States bonds are now. The farmer-borrower will be, himself, an owner of bank stock and a member of a farm loan association, which he will help conduct; ho will thus be receiving a practical financial train ing of great value, and will bo car rying his sharo of responsibility expressed in a direct liability for farm loans made by his association s4 ' ThatFriow !-. f BARGAIN OFFER For Limited Time to New or Renewing Subscribers V H B m m jrVk & mm aA mm m. Bk WW VPh V IMMH a I inn UUMMUNtK and Thrice-a- weeKNfcW YUKR WUKLD, both One Full Year for Only $1.15. 1 Address Orders to THE COMMONER, Lincoln, Nebr. San Diego Property For Sale or Trade I have three eligible residence lots in San Diego, California, which I desire to sell. Or will trade them for real estate of equal value near Lincoln, Nebraska, Miami, Florida, or Asheville, North Carolina. For terms and price apply to W. J. BRYAN, LINCOLN, NEBR. 7HO S4WWG VOTWNG f Kansas City Post. in his neighborhood. And tho in vestor desiring to invest in farm loans will no longer buy individual mortgages in odd sums, taking, him self, the chance of the security prov ing sufficient. He will buy bonds se cured by the capital stock of the land banks, the farms mortgaged and a definite stockholders liability be side. These bondB will be free of all taxes, which will make them de sirable investments, and tfiey can be bought in round sums say $100 each. How many farmers in the United States have worked too hard, seen their wives breaking under the strain of long hours and few conveniences, kept the boys out of college and im poverished their land, . in order to meet a five-year mortgage drawing high interest? How would those farmers have regarded a proposition to reduce the interest from one-third to one-half, lengthen the period from five years to 40, with the privilege of paying out in less time, and pay the principal by small installments in stead of at the end of the term? The rural credits act makes this change. There is nothing exclusive in the new system. The states will still be free to develop state rural credit systems, as Missouri is now doing, and the two will no more conflict than our national banks and state banks conflict in Missouri today. St. Louis Republic. "BACK TO THE FARM" The man vho has made millions and the man who is down and out have a common vision of joy. It is to go "back to the farm." But as a rule, only the millionaire takes the trip, says the Shreveport Times. Just why the penniless man can seldom succeed as an agriculturist even by taking up government land has been worked out by the New York congestion committee. The in formation appears in relation to the Crosser colonization bill now before congress. This bill is designed to assist farmers and to protect them from exploitation by land and money sharks. Speaking on this bill before the house committee on labor, May, 18, Benjamin G. Marsh, executive secre tary of the New York congestion committee, quoted statistics provided by the Jewish immigration and in dustrial aid society of New York: "On the whole, we would not feel warranted in advising any man to buy a farm unless he had a minimum capital of $1,000. Even then he will need our assistance. Without it $1,500 to $2,000 is little enough. The same holds good even in home steading on government laud where tho land costs nothing." In other words, it is a risk for a man to undertake farming with a mortgaged outfit. But there is a more obscure cause for the difficulties of the poor farm er. Though little understood, it reaches very far. It is inflated land values, and the concentration of own ership of the farm lands of the coun try. A table compiled by the secretary of agriculture on the, basis of figures from the census of 1910 covers 878. 798.325 acres of farm land. This area is alloted and held as follows: 3.0 per cent in farms under 20 acres. 5.2 per cent in farms of 20 to 49 acres. f 11.7 per cent in farms of 50 to 99 acres. 53.G per ce-t In farms of 100 to 499 acres. 9.5 per cent in farms of 500 to 999 acres. 19.0 per cent in farms of 1,000 acres and over. Landlordism, the curse of the old world, is now in the making in this country. The Crosser colonizataion bill is one of our first attempts to defeat it. "Until we tax land values more heavily and transfer taxes from buildings and all other improve ments to..Jand values, farming wiu be increasingly unprofitable, saia March fpphe house committee on labor, recently. . "The proposed rural credits plan, insofar as fliey would lower f rates to" fatfmers, would tend torn flate lafltfTOJlues, but this danger w also invented in the lands under tw superVis-ioVdf the colonization board, t by the provisions of the Crosser bill." ...