BENEFITS OF FEDERAL FARM LOAN SYSTEM 483 



tinue to profit thereby so long as the system brings increased 

 prosperity to the farmers who use it. 



Reduces the high cost of living. — But, lastly, the farm loan 

 system may be expected to reduce the high cost of living, since 

 it encourages agricultural development by making loans at a Ioav 

 rate of interest and on easy terms of repayment. This means 

 better livestock, more modern buildings, improved machinery, 

 more fertilizers, and better seeds. The results have been larger 

 crops and larger incomes to borrowers. When the full effects 

 of the system have been felt in a few years, higher grades and 

 larger quantities of farm products will reach the consmner's 

 door at cheaper prices than at present. 



The credit furnished farmers under the conditions named 

 above should certainly reduce the price of farm products. For 

 since farmers can produce more goods with less labor and at a 

 less cost, because their business has the use of capital at a lower 

 cost, they can sell their produce cheaper than formerly and still 

 make greater profits. AVhile this will mean no less profit to mid- 

 dlemen, it ought to mean a lowering of the cost of living in cities. 

 In this way producers, distributors and consumers of farm prod- 

 ucts will be benefited. 



The Federal farm loan system, therefore, has a broad field of 

 service. Its benefits are by no means confined to farmers or 

 rural communities, but will extend into every home in the land. 

 During the two-and-a-half years of its existence the system has 

 met with wonderful success and it now has the loyal support of 

 all those who have their country's Avelfare at heart. 



Farmers who are interested in this helpful system of farm 

 mortgage credit should write for free circulars to the Federal 

 Farm Loan Bureau, Washington, D. C. 



