The Federal Farm Loan Measure

Maine, 1916

After many years of effort on the part of those who were interested in the proper capitalization of the farms of the Country, Congress has passed what seems to be an adequate law that will give the farmer and land owner the same privileges in our banking system that have been enjoyed by other branches of industry for many years.

The grange, both State and National, has been a factor in creating a sentiment that has made the passage of this measure possible, and is seems a matter of great concern that at the hearing on the measure at Augusta, recently, those who had official connection with the grange, or who had commissioned themselves to speak for that body, felt called upon to discourage the Commissioners from trying to locate one of the branch banks in Maine.

Had the farmers, who realize their needs, and who are trying to meet present day conditions on limited capital, been allowed to speak for themselves the result of the hearing would have been different. But they were on their farms, working against great odds, and others spoke for them from knowledge obtained in the class room, in business circles, on the lecture platform and in City counting rooms.

How this hearing emphasizes the necessity of leaders who really realize their responsibilities, and who are able to look at the problems of the farmer from the proper view point.

Is it possible that these men let partisan prejudice warp their judgment? Did they think it improper to judge favorably an act of the present Congress? If such is the case, which God forbid, let me quote a little from the last President of the United States, of the opposite political party:

"The 12,000,000 farmers of the United States add, each year, to the national wealth $8,400,000,000. They are doing this on a borrowed capital of $6,040,000,000. On this sum they pay annually interest charges of $510,000,000. Counting commissions and renewal charges, the interest rates paid by the farmers of this country is averaged at 8 1/2 per cent, as compared to a rate of 4 2/3 to 3 1/2 per cent paid by the farmers, for instance of France and Germany.

"Again, the interest rate paid by the American farmer is considerably higher than that paid by industrial corporations, railroads or municipalities. Yet, I think it will be admitted that the security offered by the farmer, in his farm lands, is quite as good as that offered by industrial corporations. Why then will not the investor furnish the farmer with money at as advantageous rates as he is willing to supply it to the industrial corporations? Obviously, the advantage enjoyed by the industrial corporation is in the financial machinery at its command, which permits it to place its offer before the investor in a more attractive and more readily negotiable form. The farmer lacks this, and lacking it he suffers."

This, from so good an authority as Mr. Taft, ought to be convincing to all who are fair minded and intelligent. It ought to silence for all time the cry of the partisan that this bill has no value except as a political weapon.

The recent happenings in relation to increased freight rates, the arbitrary fixing of prices of his products by the distributors, and the high price of labor have set the farmer to thinking. He now knows that while farm products are higher to the consumer than ever before, his profits are not increasing, in fact, that they are actually decreasing in many instances, and that one great reason for this is the lack of ready capital to take advantage of conditions, and to finance him through the season and enable him to act with his fellows in any co-operative plan that shall tend to lift a portion of his burdens.

Then again, the college of Agriculture which was represented at the hearing, is all the while turning out graduates who ought to be well fitted to take up the business of farming and carry it to a successful standing.

But to do this they have got to have capital and ready means of credit, but very few of them are fortunate enough to have a farm awaiting them on graduation. This higher agricultural education calls for more expensive methods, better animals, more farm machinery, all of which call for money.

And because of the lack of ready capital, many of these young men will drift into other occupations, their services will be lost to the farm, and the college will suffer because more of its graduates are not found on farms.

It would naturally have been supposed that these college representatives would have hastened to put themselves on record as favoring the establishing of one of these land banks where it would have been available for their graduates, instead of remaining silent or actually repelling it.

But the time is coming when the farmers will speak for themselves, when they will no longer be bound by the time-serving policies of their leaders, and self-appointed spokesmen. When that time does come, as it surely will, the farmer shall get his full due, the business will again be prosperous, every man's hand shall not then be against him, and there shall come a lasting prosperity to State and Nation that shall arise from a happy, a contented, a prosperous agriculture. Let us all try to hasten the glad time coming.

B. Walker McKeen.
Fryeburg, September 1, 1916.

—The Fryeburg Post, Fryeburg, Maine, Sept. 12, 1916, p. 2.