122 



There was no insistence during the discussion of the 

 projected law in the Congress, (possibly, it was men- 

 tioned) as to how the farmer was to get the funds, still 

 less indications of the way to obtain them at a minimum 

 cost. This had to be evolved later on. 



Here I would like to record that in the United 

 States, attempts have been made, and have been crown- 

 ed with success, to accord loans to solicitants without 

 any further security than their word of honour to re- 

 pay the debt. Notable, indeed, have been the results, 

 especially where the solicitants have been poor people, 

 relatively speaking, seeking loans for the purchase of 

 tools and implements for their respective tasks. 



LOANS TO FARMERS WITHOUT SECURITY. 



But do not, for example. Government employees 

 obtain loans without other security than their prospec- 

 tive salaries, or rather on the future prospects of their 

 getting their salary? 



To return to the Prenda Agraria, any attempt to 

 make the security under the Prenda Agraria other than 

 a relative secondary security would call into being such 

 complicated proceedings as to destroy its fundamental 

 basis, i.e. a rapid method of obtaining money at relati- 

 vely easy terms. 



An extension of credit under the Prenda Agraria 

 is not to be expected at present; it will take place pre- 

 sumably as the wealth of the farmer increases and in 

 proportion to his facilities to utilise the money advan- 

 tageously. In the mean-time whatever contributes to 

 increase the wealth of our farmers in agricultural tools 

 will equally help to expand the Prenda Agraria. 



CEREALS AS SECURITY. 



Although the Law of the Prenda Agraria enumer- 

 ates fimonii 1 its securities, ''agricultural produce", that 

 is to say, cereals, etc., loans on such are practically 110- 

 existent . Had they been practicable there is every 

 reason to suppose that with the enormous amount of 

 cereals still lying about 011 the farms, there would have 

 been but few farmers who would not have taken ad- 

 vantage of the reputed security and obtained money 

 thereon in these times. 



As we see, too, the Warrant Laws, also destined to 

 facilitate business and credit on cereals in particular, 



