THE FOOD CRISIS AND AMERICANISM $5 



of mortgages is unwise is that practically no defaults 

 occur during normal times, when crops and prices are 

 fair, and plenty of money available. The farmer, 

 under such conditions, can always borrow money to 

 pay his coupon. If not, he can usually find some one, 

 as many do, from whom he can borrow sufficient to 

 pay the existing mortgage and defaulted interest on 

 same. 



Such general defaults and foreclosure eras have 

 been far removed from each other twenty to thirty 

 years. They are then precipitated as the result of 

 overstrained credit, crop failure, low prices, or general 

 financial depression, and come all at once. Before 

 the climax is reached, the guarantors have exhausted 

 their resources in cashing defaulted coupons, and are 

 forced out of business a most unfortunate thing 

 for the investor, as the judicious care of loans at such 

 a time is of vastly more value to him than the de- 

 faulted interest already advanced. Why exact a guar- 

 antee from men of responsibility and long experience 

 in that particular line, and not from irresponsible and 

 inexperienced political appointees? 



Under the Farm Land Bank Act, each borrower is 

 compelled to invest five per cent, of his borrowings 

 in the Land Bank Stock, which carries a double lia- 

 bility. This could be retained by the Government on 

 loans made through private agencies, instead of held 

 by banks as now. The liability on this stock, how- 

 ever, will, if default be made, prove of little worth. 

 No Congress would fail to give relief to these bor- 

 rowers from an unwarranted liability imposed under 

 semi-duress. There is nothing in precedent or busi- 



