52 THE FOOD CRISIS AND AMERICANISM 



really lacking in credit, which they were not, and it 

 became necessary for our Government to extend such 

 aid to them, why add to the farmers' burdens an un- 

 necessary cost? In my opinion, and I speak advis- 

 edly, there is not a responsible firm doing an extensive 

 and reputable farm loan business, but what would be 

 more than willing, if the Government had funds for 

 the purpose, to take this money and loan it to the 

 farmers at four and one-half per cent, instead of five 

 and one-half; make no charge either to the farmers 

 or Government, but in lieu of all other remuneration 

 for time and expenses, accept one-half of one per cent, 

 per annum on the face of each loan, to be paid to 

 him as the interest was collected. Thus the farmer 

 would be saved one to one and one-half per cent, per 

 annum on interest, and the Government could with- 

 draw its $9,000,000 capital, and incidentally cut off 

 all expenses for salaries, office rent, stationery, ad- 

 vertising, etc. 



This method would furnish a greater guarantee, 

 and secure better loans than any yet devised. First, 

 because none but firms solidly established in the busi- 

 ness could afford to wait three to five years before re- 

 ceiving any profit it would be that long before cash 

 out of interest received would be equal to the accumu- 

 lated expense of the business. In case the company 

 (brokers) failed, the one-half of one per cent, on all 

 the outstanding loans would cover the expense of care 

 and collection of them. As to the safety of his loans, 

 no broker without the utmost confidence in his secur- 

 ity would do business on this basis, and with such 

 loans, he would be extra conservative. 



