56 INFORMATION RELATING TO CREDIT 



The Federal I^and Banks and the Federal Farm I^oan Board maj'^ prove 

 to be suitable means for the solution of problems even of national import- 

 ance. It is reported that in certain Southern States the British govern- 

 ment has requested British subjects holding in them farm mortgages to 

 call for the payment of the loans and withraw the money from the country 

 to invest it in British government war issues. It is credibly asserted that 

 the mortgage loans affected amount to nearly $110,000,000 — far more 

 than the farmers would immediately procure from American investors. 

 Only the Federal Farm Loan system seems to be in a position to take up 

 these obligations. It may have to solve a yet larger problem. In order 

 adequately to participate in the flotation of the war bonds of the United 

 States government, the American life insurance companies may have to 

 reduce to some extent their present large holdings of farm mortgages. 

 Here again the Federal Farm Loan System may be the only recourse open 

 to farmers obliged to pay off maturing mortgages which they had expec- 

 ted to be able to renew indefinitely. 



