254 Missouri Agricultural Report. 



needed is some basis on which educated, hardworking, honest 

 young men between the ages of twenty-one and thirty may 

 obtain a reasonable capital with which to make a home in the 

 open country. What is needed is some method of replacing the 

 opportunity which formerly existed under the homestead act. 



In endeavoring to make applicable any long-term mortgage 

 system for this country the fact must be kept constantly in 

 mind that the farmer of Europe operates under nominal expense 

 as compared with the farmer in this country, as well as operates 

 on a much smaller scale. The European farmer applies himself 

 to a greater degree and is more scientific in the handling of his 

 land products. While the average farm in Europe is small, 

 varying in size with the different countries, about twice the yield 

 is obtained per acre that is obtained by the American farmer, 

 owing to intense cultivation and scientific methods. The earn- 

 ing capacity of the European farm is an established fact. That 

 in turn establishes its value. So settled are the values that the 

 basis of assessment for taxation purposes, which is made at one 

 hundred cents on the dollar, is generally used as a basis for valu- 

 ing property when granting loans. Among the most important 

 advantages for facilitating loans on real estate in Europe is the 

 title-registration law which, in effect, places the government 

 behind the title to all property. Some modification of these 

 title-registration laws could undoubtedly be made applicable to 

 every state in the Union, and is highly essential to obtaining 

 cheaper rates of interest on mortgage loans. 



It must be understood that the method to be pursued in 

 this country under existing conditions, should any long-term 

 mortgage systems be devised, necessarily would be quite dif- 

 ferent from the European methods; the rate of interest to be 

 paid by our farmers would of necessity have to be higher, be- 

 cause of the expense incident to appraisement; because of 

 exemption and redemption laws; because of the general lack of 

 title-registration laws, and the consequent need of abstracting 

 and title examination; because of the necessity of safeguarding 

 the loan by watching the security that has not such a stable or 

 definite income-producing value over an extending period; and 

 for the further reason that a market would have to be built up 

 for this class of investment. Whereas throughout European 

 countries this class of investment is now well established, 

 their land mortgage associations having been in success- 

 ful operation for over a century without a loss of a dollar to an 



