1232 Xew Yokk State Agricultural Society 



tioii and supervises the loan itself. l)ut where a largo volume 

 of business is carried the exjx'iise in either case is insignitieaut. 



It is most important to so safeguard the dchentures that they 

 will sell readily to investors and he absorbed at a low rate of 

 interest. In European countries they are as stable as government 

 bonds and carry practically the same rate of interest. The last 

 issue in France was subscribc<l foi- eighti-en times over. Germany 

 land debentures are absorbed I'eadily by the people. The deben- 

 tures of Denmark are readily taken in France and Germany. The 

 rate at which the debentures sell regulates the interest rate of 

 the mortgage with a fraction added for expense and amortization. 

 The small annual payment always increases the security of the 

 loan, and the long period relieves the farmer from all anxiety 

 about the renewal of the mortgage. The annuity which finallv 

 wipes out the mortgage should be less than the present annual 

 interest charges, which leaves the mortgage to be paid in bulk. 

 Our federal government estimates that $120,000,000 was lost 

 to small investors of this country in get-rich-quick promotions 

 during 1912. It has estimated nearly as much of an annual loss 

 through the same source for years back, and this without any 

 record or estimate of the losses sustained through similar stock 

 promotions and gold brick ventures of less conspicuous character. 

 I believe that these savings of wage earners and inexperienced 

 investors would be readilv converted -to these debentures with the 

 result of enormous saving and a steady income to the people. 

 We should make the law that safeguards our own morta'ace de- 

 hentures a protection to the inexperienced investor in worthless 

 stock and promotion schemes. 



The cooperative mortgage baid-c would solve the problem of 

 financing drainage and other farm improvements. It would have 

 a potent influence in keeping many young men on the farm. 

 Many men past middle life, who struggle wdth the mortgage dur- 

 ing their early years, hesitate to assume new Imrdens for improve- 

 ments or to start the sons on farms of their own, because of the 

 anxiety about constant renewals of mort<>a2;es as well as the 

 expense and high interest rates. But they would hardly 

 hesitate to make improvements that could be safely tinaiiced so 

 that the profit and the improvement would liquidate the expense. 



