FARM FINANCE 141 



can be made adequate to supply this special need without a sac- 

 rifice to their present field of endeavor. The commission rec- 

 ognizes that too great ease in borrowing should not be encour- 

 aged, since this might result in an unreasonable increase in farm 

 debt. On the other hand, it should not be forgotten that under 

 the present system tenancy continues to increase and farmers 

 have outstanding obligations easily exceeding two billions of 

 dollars secured by mortgages on their farms, much of which 

 was negotiated under very unfavorable circumstances and with 

 very high rates of interest. It is believed that under the plans 

 which have been formulated herein, and which are intended to 

 be supplementary to the existing system, tenancy may be de- 

 creased, the needs of farmers be taken care of, and at the same 

 time the outstanding obligations may be refunded on much 

 more favorable terms and gradually reduced by the regular 

 payment of small annual instalments impossible under the 

 general system now found in this country. 



As carrying out the conclusions reached by this commission 

 in its efforts to formulate a plan for the creation of land-mort- 

 gage banks, a form of bill has been drafted, which is attached 

 to this report as a part thereof, and which is respectfully rec- 

 ommended to the consideration of Congress as an outline of 

 legislation providing adequate facilities for meeting the needs 

 of the farmers for long-term or land-mortgage credit. 



As a result of its deliberations and of the hearings 

 before the various committees, the Commission sug- 

 gested a form of a bill to be considered by the Congress 

 of the United States entitled 



A bill to provide for the establishment, operation, and 

 supervision of a national farm-land bank system in the United 

 States of America, for the creation of depositaries for pos- 

 tal savings and other public funds, and for other purposes. 



Various efforts have been made to secure the consid- 

 eration of this bill at the present session of Congress. 

 Other matters, however, of public interest, and espe- 

 cially the debates on the repeal of the free toll clause in 

 the operation of the Panama Canal and the time spent 



