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nonnal values. At that time, values were abnormally low, and that meant a rather 

 generous lending policy in relation to sale prices of farmland at that time. Loons 

 on the "basis of normal values are Just as eensihle during bocm times as during depres- 

 sions. The difficulty arises from the fact that at the present time returns on other 

 forms of investment are very low, and lending agencies have very large sums of money 

 available for loans. This tends to cause them to beccme less conservative and to 

 shift frcan normal values to current sales prices as a basis for a valuation for lending 

 purposes. This eventually leads to trouble because the buyers are encouraged to borrow 

 too much money and to buy land which they would not buy with a more conservative lending 

 policy. To date, records appeeir to indicate that Illinois farmers are following a wise 

 financial program, and that most of the speculative purchases of familand are being 

 made by tity people. Over a period of years, it probably will turn out that purchases 

 of government bonds, yielding about 2j percent interest, will be better investments 

 during the rest of the war and immediate postwar period than will faimland which would ' 

 appear to yield a very much higher return at current levels of prices of farm products. 



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