mz rczvvs ato) od5erver
SUNDAY MORNING, SEPTETER 1, ISIS. ! i
:EDS THAT PROMPTED PASSAGE
F FEDERAL FARM LOAN ACT
AiJresa Delivered Before Farmers' State Convention By
David A. Houston, of Union County, And Now Presi
dent Federal Land Bank at Columbia, S. C
It 1 indeed very great pleasure,
rnd'eertaJnly a, distinct privilege for
in te be with you today and t dlseust
a a practical way the working of the
Farm Loea Art. We are glad of thit
opportunity, because it preaent fa oc
casion for you to t tome of ut who
are directly charged with the duty of
pntting into operation thia art la the
Third redrral Land Bank District. We
appreciate especially thia privilege be-
cauae hero -we meet 'see ta face many
secretary-treasurer of farm loan aaso
nation, togetbrr with other who atand
behind the great agricultural interests
of North "Carolina. It ia only fair to
state Just hero that the eeeretary
treasurer of a national farm loan asso
ciation, doing bis whole conscientious
duty eoatributes possibly more rral
work to the support of the system than
any ether individual named ia its or
ganisation; certainly to apeak of his
compensation la It he past, for this
work, would only arrre to recall the
horror of a bad dream. Hut, Mr. Secretary-Treasurer,
it ia not the spirit or
the purpose of the aof'to forever en
coursg tlit Idea of. "siiiiiptliing for
nothing," convinced long ngo, as we
are, of the practical truth that "all
work and no pay makes Jark a dull
boy." The motive that has prompted
you to lead a hand in the pant is one
to be moat generously applauded, and
roar conduct driwrvea unstinted praise.
Ton have not shortened your arm, but
have willingly, faithfully, and labori
ously given of your time and talents
t-the suer esaf ul-nphii i ldingandap:
rratioa of a rural credit system that
must ereTonrTmn7itW"ra1tTrnf
a devastating war, this blessed South
lnd. Out of the allies of despair
out of a gloom as black as the blrkest
night with a courage thnV mocked de
feat tad kiiirhcti at diversity, our
dauntless, fearless plucky ancestors ae
repted like true men, as they were, the
decree of fate, and today this devasta
ted waste of the Sixties with her many
Cod-given monopolies has eome back
with the agricultural strength of a
modern Ooliuth. And from her fertile
fields and farms, forces and factories,
a hnnpty, naUed world toilny looks with
confidence for its needs. Not only does
she eome bearing prertons sheaves, but
out of the rank of a splendid yeo
manry eur young men have rushed to
enlist, under the Stars and Ktripes, the
: fag of a united country- with one
heart one hope, and a faith in a moth
er'a God, they are standing-thry nre
fearlessly fighting- tiny nre willingly
j filling thnt the principles of a gov
ernment of the people, for the, people
I rnd by ths people shall not perish from
t!k ejrlh. It is an in.piring tlinnctit
t!tat lbs free, unfile, liberty luring
M'ir't of America h:ts crossed tlio i
i sdllintcd and unafraid, lifts met 1 Vie)
snvaga thrust of the llun in his I hirst
for blood and world dominion ;' at Ch.i-
teau Thierry, the M.-inie on. I the Aisne
has horled itself with fearlessness of
a dumon anin;;t l'1'1 savage hordes' of
('emcntod Kaiser, and today, as I i-peiik
tnj you, with its Allies, in world spirit
05 democracy, it will halt the Hun and
him buck placarded with the mark
o (sin, warning future generations
ngslnst Turkish infamy and German
triutilience anl treachery, .Now, my
friends, you will please pardon this
little dicrossion. When peace Is pro
claimed, It does not mean, at the sound
tng of a lion if, the status quo nnte-
', lcllura will be promptly resumed it
docs not mean that agricultural, lliinn
rial, and commercial America will fall
lack unopposed. We must pass througli
, an era of recreation, reconstruction
and realignment, both nationally ami
internationally, Clssea must be consid
ereai nut ot civilization, winch is
the individual, must he preserved. The
doe t ria of t he Hwv4laf t ha fi t test.
financially, must not obtain to such an
extent ai to destroy the weak, but
etery part of our national organism
must harmoniously blend into a ne
scheme; not a tome would term It,
"revolution,'' .but rather let ua call it
"evolution," which means a greater
national perfection. There is a right
that must rule, and in the confusion
sad complexity of a just realignment
wo eaa trust the inate honesty and
philanthropy ef Woodrow Wilson to
moat fairly favor.
Mew Sit nation la History.
Since the days of Joseph, son of Ja
cob, when Egypt became the granary
of the world, and the one enslaved
soa of the house of Jacob had the man
agement and eontrel of the agricultural
sad commercial Interests of that eoun
try,aad tbavlhea kniiwa..woj:li hecame
impendent upon Kgypt for its entire
food supply, history does not record a
i.ke state of affairs until today, when
our own country has become the great
rranary and food depository of the
modern world. While the great war in
Kurop is 'ruging around what before
-ere farming sections, the United
'ate, by ita separation from the ae
iitl acme of war, is looked, npoa as,
-nd actually Is, the only country of
ny importance to supply the world
ith the food stuff and manufactures
eeetsary for the life of the nations:
recially ia thus true of agriculture,
-rsuse in t-umpe the lands have been
vastaUd and rendered largely unfit
r farming, ana men or all ages have
i in called to the colore, leaving a
rent dearth of farm labor there.
meriea bow becomes the Mother Coun
yshe most answer the cry of a bun
ry world, but in thia hour of world
'possibility and world duty, the must
: ot turn a deaf ear to her needs at
imr. By inheritance wa possess fields
t virgin fertility that most graciously
nd abundantly respond to proper ag
Ktiltttral treatment. Onr lands need
nly to be looked npoa with an eye
f judgment and handled by a hand
f patience. Agriculture in America,
t it would meet our national require
ments, to nay nothing of international
i rdt, wa are going to be called upon
r tome yeara to provide, must assume
dignity and importance, and be shownN
t consideration of an indfspensabla
tor ia the preservation of our na
mal wealth and civilization, ft ia
9 hackbona of all life and a' source
f all wealth ia its origin ; it mutt be
nitalized and looked npoa and treated
1 a going, indispensable concern, main
li in it undertakings, gTat ia ita
nfial requirements, vital at it
is, it must not fait. To meet .iti
..mte needs and to aneouragt. gJ
f'-C Jul
I K )
I ,.' :
' - - - - - '
Mr. Uav id A.HonjtoB.
ricultural pursuit - agricultural ' produc
tion B'Jd comforts . and attractiveness
to farm life and farm ' surroundings,
our nation has come to its aid with
the Karm Iian Act.
1'rovide for Development.
TheYimn I,oan Act is an act to pro
vide cspilal for agricultural develop
niont to create a standard form of in
vestment based upon farm mortgages
TiTT(inatt7rTnTF Tifintrrest npoa farm
.lua-toxxciiJUh. a luarJi.eLjorXi!it ed
States bonds -to create goverunient de
positaries aud financial agents for the
I'nited States. This law is the outcome
of years of national clamor on the
part of the agricultural interest of this
copntry for legislation that would finan
cially relievo the farming rlas. It as
the result of crystallized nufioiuil opin
ion that the sources of our nation's
wealth were be i op seriously handicap
ped because the farming classes had
not definite recourse to funds cuiial to
their lei;itiirnite fluauciiil m-eds as
wenlth- rodiieing and ns a lit'e-sui!.iii-
ing factors, l! look the minds of our
greatest men many veins to learn that
the ttealth of uny country is in its soil,
that he goes forth to sow anil to
reap is the only producer of wealth iu
i t origin; that the man who assembles
and burners the products of our land,
and refeews them at a point of exfor
tioh, is not 11 producer of wealth,' but a
parasite of most detestable type, and a
traitor to the needs of the dinner pnlTs
of thia nation. The life blood of any
iiiil'on Hows through the tren'h t!:e
plo has made out of the products o"
the soil the world must lie fed, and
from the release of the secrets of na
ture in its excess abundance comes n
nation's balance of trade. To tie or
seriously handicap this great 'ar;ery,
through which alone the wealth of any
nation must bo supplied is to.' invite
sure liiliunity nml national pauperism.
With tliis idea iu uiiud the great heads
of our government have wen the pend
ing evil day, nml. have answered the
distress call v itii the I'arm loan Act.
1 ask your patit nee for a moment in
my behalf while I digress n lit! I. .just
here. That political party, to whon
credit is due the grandest batch of con
sti'uetive legislation in the historv of
any nation, having turned its eyes from
the idea of "tarilT for revenue and tariff
for protection,'' and rested them upon
the architect of the golden rule ius'eud
on .lulv 17th, l'.MIi, laid under the hand
of I'resident Woodrow Wilson a proc
lamation of ngrieultiiral emancipation.
which carried with it hope, foieshad
owed comfort, and ushered in new life
imd light to the si million farmers who
are depended upon to feed this nation.
Twelve Banks la Country.
There nre twelve Federal Uiud Hunks
in the l uited Slates. These bunks mr
located iu certain territories called dis
tricts, the districts are numbered from
one to twelve. The federal land Hank
of Columbia ia iu the Third District,
and the states served by it are North
Carolina, South Carolina, Georgia and
r lorida. The paid-in capital of each
bank is 750,000.00, the authorized rap
ital is two million dollars. From the
paid-in capital of the Federal Ijind
1 In 11k of Columbia, one hundred and
fifty thousand shares of stuck were tak
en by the government, the public de
clining to subscribe in thii rase, be
cause public stockholders would have
no voice in the election of officers or
maaagomrnt of affairs under the la
It was never intended that any foreign
inbaicat ahould .CBj8li!SJn'. rrance
ment that could at any time menace
the spirit of the law or weaken the in
terest of that rlass for whom it was
originally intended to do service. No
room was left for a manipulation of the
stock interest, and no opportunity could
le given for a corner or a squeeze in
the financial enterprise. The idea of
cooperative requirement under like
condition,, and like control, runt
through the whole fabric. In order to
take advantage of the .provision of
the act, ten or more farmen must or
ganize into a Farm Loan Association.
This feature of the act, under the head
of "Organisation and the detailt requir
ed ia the tome will be discussed be
fore you on tomorrow morning by Mr.
Howard C. Arnold, the Beeretary of the
Federal Land Bank of Columbia. It
la my purpose to give you something of
the needs that inspired the enactment
of thit law, and to ahow to you, if pos
sible, how the finances of these Ind
Ranks are haudled. In the first place,
a quarter of a century ago, it became
evident that the resources of the Htate
Banks combined with the resources of
our Nations! Hanks, did not afford cap
ital sufficient to meet the needs of thit
growing nation in ita minor require
ments, to tay nothing of the million of
dollars that would be necessary to
meet the. legitimate needs of the agri
cultural rOTpiirrnienti of the country.
Ynn understand that the Btate Bank,
with its limited capital, wa the only
financial institution that could, in itt
own discretion at to amount, make loans
on real estate. You understand that
National Banks were circumscribed In
their limits as to loans en real estate.
not purely for lack of capital,, but be
cause, under the National Bank Act,
personal endorsement kud stock col
laterals were accepted, because our rov-
ernmcnt lielieved that this class of se
curity would nor readily point out
the ws.v to quick asset sad an emer
gency liquidation than a loaa held with
land as a collateral, which ia to be real
iied upon by slow process of court
liquidation and record entry, and could
never be deemed a collateral that would
meet aa emergency requirement. When
ail the available funds front these two
sources, up to five years ago, ware
added together it would hardty repre
sent aa amount equal to the funds fura-uh-d
alone to the farmers under the
Farm Loaa Act required by a month's
output of the Federal Land Bank of
Columbia for the State of North Caro
lina. The-Federal Beterv Aet, which went
Into effect November 16th, 1914, while
aiding greatly the elasticity of eur
eurreaey, under its authority could hot
touch the requirements of long termed
agricultural loans, but had t deal with
that class of the nation's credit which
had short termed maturities, and
through this act twelve centrally lo
cated banks were capitalised by certain
required stock assessments sgainst every
National Bank, and also all State Banks
that desired to qualify under the Fed
eral Reserve statute. These banks, as
I have before hinted, were only clear
ing houses for funds that were to be
used for short terms only, and their
benefits were practically available only
to that elasa of customers who repre
sented the banking, mercantile and man
ufacturing interests of the country. The
idea iu this law was to, by certain as
sessment, establish Reserve Banks,
which could be appealed to for quick
and steady assets that would thwart
anything like a money panic; granting
the right, under certain regulations, to
these banks the power to issue emer
genry. currency based Upon Certain ap
proved commodity collateral in process
of nianufact nre.
Through these banks it was .deter
mined to put in operation certain
method of approved hanking whereby
this government, as.a government, could
control and have immediately available
such funds as were necessary to carry
on legitimate business. As before staled,
these banks were organized as Keserve
centers, and their funds were at all
7fmr TrrrTeatTT'-ted by such eonsev
t-UUUSJI!Lj.n nssnre the public that a
greater part of their funds" would be
available 011 demand., In other words,
this source of emergency money supply
is uot permitted at any time to be
drawn lielow a certain reserve require
ment, aud the demands made on these
Keiierve Banks frir discounts are limited
to short terms anil no renewals of ma
turities nre permitted, no stocks or
bonds can be pledged ns collateral for
funds had from these banks, and no
funds can bo obtained from these
sources that are to tie used for any
other purpose than for legitimate bona
li'ii business. There ia no way bv
which the Keserve Act can bo inter
preted that it will permit the fields of
gambling or speculations to he benefited.
I'or reasons that nre ohvious the farmer
could not take advantage of the Fed
eral Ileserve privilege. A loan that
lid be available to him for only sis
months ns 11 maximum length of time
could only serve to harass him in his
underiuking, and he could not be ex
pected to he possessed of that class of
collateral that would be acceptable by
these hanks. Therefore, this govern
ment hns, by careful thought ami con
sideration, worked out a plan thnt would
meet his requirements by furnishing
him funds on easy payments through
a long period of time a ml at a very low
isle or interest. These funds arc avail
aole through the several Laud Hanks
under the Farm laian'Act:
A To purchase land. ,
t To purchase equipment.
C To purchase fertilizer.
1 To purchase live stock. 1
F To provide buildings.
r I a improve laud.
' To liquidate-indebtedness.
II -IV. 1 1. ....
11 m piireinis hi ne k in trie .ationa
farm l,oun Association.
A II I I . 1 . . . . ...
.111 loans ua miiiiii oy me redcra
mini 1 .111; ms ior the nliove purposes are
to run for a period of from five to
forty years. The rale of mlcrot at the
present time is live and one half (Til
per cent), and the borrower pays in
addition to this 0110 per cent, which
goes to nmortiza or to liquidate the
(Continued on Page Twenty-two.)
Scho6ls and Colleres-
o
-Schoob and Collf
Schools and Colleges
D U R H A M
Nort hCarolina
TRINITY COLLEGE
Fall Term Opens Wednesday, September 25.
Students' Army Training Corps
Organized hj authority of th War Department
cuss or Kjsnoi isvM-raj FT y
v-f . W
Qwtsnw ,
saw
-iti til"
J atowac
TEL
UNION
i .
AM
W ATKINS.
Mtwcoeia caul-ton.
scc peeini
n-vfoawc aeowa. nctntuMM
MAsawaoivioi
tssmoil
smue t at I
a unit or
therein.
President of Trinity College
Durham, North Carolina .
Tutrr-t rre tt trti cm-ha vi ng-sa tts f i ed t he-p rocribed-'conditions t"
the students' army training corps will he. established ,
By direction of the secretary of war an officer of the
United States army will be detailed to your institution at an
early date and will upon arrival proceed with organization of your
-unit'' Rifles, Uniforms, Overcoats and oilier equipment will be
shipped to you soon upon the basis of figures already furnished
" oy youT" " - (Si gnod ) Me CaJ n , The Ad J utant General .
EQUIPMENT AND MAINTENANCE
The following statements from The Committee on Kducation and Special Training, of the War Department of
August 2, outline the general plan under which the Students' Army Training Corps will operate under the changed con
ditions produced by the revision of the Selective Service law:
- s
1. All young men, who were planning to go to school this fall, should carry out their plans and do so. Eaen should
go to the college of his choice, matriculate, and enter as a regular student. He will, of course, also register with hit local
board on the registration day set by the President. As soon as possible after registration dar, probably on or about
October first, opportunity will be given for all the regularly enrolled students to be- inducted into the 6tudents Army
Training Corps at the schools where they are in attendance. Thus the Corps .will le organized by voluntary induction
under the Selective Service Act, instead of by enlistment as previously contemplated.
The student, by voluntary induction, becomes a eoldier in the United States Army, uniformed, snbject to military
discipline and with the PAY OK A PRIVATE. They will simultaneously be placed on full active duty and contracts will
be made as soon as possible, with the colleges for the housing, subsistence and instruction of the student soldier.
2. Officers, uniforms, rifles and such other equipment as may be available will be furnished by tht War Depart
ment, as previously announced.
For catalogue and Illustrated booklet, address
R. L. FLOWERS, Secretary to the Corporation.
ill
Schools
and
PEABODY
, Baltimore, Md.
The EiuUwid
Muinl I'MHmttn f
Ik i'antrr.
Scholarships. Opnitte
Trslnlns. Tuition in all
and branchts. Cirralsn MalM.
tvadse
St, Mary's
School-
Raleigh, N. C
SMEDES MEMORIAL
SCHOLARSHIP
OF $270 A
YEAR
Opea Tor Tht Next Season
Which Begins Sept 19, 1911
Ta b ailed by
Competitive Examination Te
Be Held A a gnat I and 7, Ills.
Par fall Information, write.
Re. Gee, W. Lay.D.CL
Sector,
Medical College of Virginia
(State Instlmtloa)
rrcaiT McGirntt; . d, l. l i, d
bMMm IWnHstrr
Pkarmttr Mania
Opens to Women Sept 17th
One shrslclui mar rsstore a tlurMsad
Attain mm. la war mors are mMi
ta the swuplr to Inadwiuat
Te forrninmit plan patriot Is sblira.
Hoiw upon sollta te mm ta
Mistical ranks.
The Msdis.1 ColkMrs of Vs. T
fwultr, squlpiMnt. and caltursl surround.
mt wnsaeellcd. Tor rt!oue addnss
J. 1. Mcf Ari RT. r.rr.
v 1114 Bart Ctar Stmt, BWasMfU. Vs.
Bookeepers Wanted
Young men and ineligible military
men have the chance of a lifetime to
bM secure paying and permanent employ- ombM
ate acta w'
tosTdfiehodment as Bookkeepers, Accountants, ssVitasnt&erBj'
Cashiers, etc., in banks and offices where, there is a great
shortage of male help.
Come to See Us or Request Catalogue Everybody Endorses
N. C. u ' t: CHARLOTTE, N. C.
RALEIGH,
LITTLETON COLLEGE
FOB GIRLS AND TOUNO WOMEN.
Located Immediately on the Bwbosrd Air LIm nm ta Wuns Oosmtj, M. C,
on. ot th old aristoeraUs tountiss of the State, which for a hundnd ears has
been famed for Its culture and hospitality.
WE HAVE HOT WATER HEAT, FI.BCTBIC LIGHTS AND OTB IB
MODERN IMPROVEMENTS.
Miss Elisabeth Gordan, sister of Ms Anna Gordan. Franco Wnisrd's prlrmU
setrctary, my. '-Littleton College reminds me of our own ichoolin plire, Mt
""f'- , 11 sives the sludenu thorough mental traintn and furnistaej tbs same
hisrh ideals with which Mary Lyon, and her suerewon inspired rirls."
The 37th Annual Session begins September 24, lli. WriU for catalogs, auw
for particulars concerning our special offer to (iris who cannot pay oar astalosue
rate to
, J. M. RHODES, LittlsUa. N. C
t THE TRINITY PARK SCHOOL
Established 1898.
Location eicellent. Equipment first clast. Special care ot the health of the stud
ent. Fin hospital. Instructer in each dormitory. Excellent library and cym
nasium. Large athletic fields. Voluntary military 'training. Study hall under
cave of a teacher. Fall term begins September 11.
For catalogue and other information addrett
F. 8. ALDRIDGE, Headmaster,
Darham, N. C."
fit
University of North Carolina Date of
Opening Changed
On account of the delay in the announcement by the
War Department of the final regulations for the
Student Army Training Corps
The University of North Carolina Will Open
for Registration September 24 and 25
It will be necessary for all students to register prompt
ly. Examinations for the removal of condition J Sept.
18 to 21. New; students should complete their ar-
- rangements. - ----- -, .:. '
sweweeweeewewjeewe
52
THE SECRETARIAL SCHOOL
Of Smithdeal Business College
A new type at school which flora unusual or-oortnnltr for' odnesM
women te wise the demand of modern waslnaos and Industrial conditions.
T? Vr ' dr"'" m,a 90-mtr makos It assrntial that women take r.
rpoiuible tmsiasss and secretarial position whtrh roouir thorough education
and train ia. T . .
. Collage and high school iradaate can espltalhe then- dweatloa and be
f real Mretee to the counter by training to become e'fcetent war workers in
builneae or teeraurial field..
Courses In Bualnsts AdmlnlsAatloa, AdTertblng, Commercial Law, ro
aomlca. Bwnographr, Bualnee Metboda, Businoa LVgluh, Newipaper Re
porting, Accounting, ate. ,
fall sasaton ossaa Setew,Wr It-stay and eeenln eUasea.
Associate Dtrortsri llarjorr E. HendHcka, A.B, Untrersttr at Wbconsta.
Send for tataJofa new. ' .
THE SECRETARIAL SCHOOL, RICHMOND, VA.
HORNER MILITARY SCHOOL
1 QC1 N'ot'd For Discipline and Scholarship. Mold 1Q1Q
V.y Bo) In Character and Correct Hablta of Study lt7lO
Chief object ia to prepare boya for college and citizenship by thorough
training in mind and body. Btrong faculty of experienced college men.
Small classes, boy taught how to study. Military (Jrill and discipline
under English officer with three years' eiperience In France, retired for
disability from shell shock. Enlisted in famous Princes Pat Regiment
while member of Horner School faculty. All athletics, supervised to de
velop a boy s sense of right and honor. Invigorating outdoor athletic
and aportt all the year. Climate .unsurpassed. Healthful location of 60
scree in beautiful residential park of 1,200 aerct. offers to 75 boy a
country tchool, accessible to all city advantage, Y. M. C. A. and Csrnegi
Library of 8,000 volumes.
Sixty-eighth year opens Sept. 3, 1!18. Addre,
CoL J. C Horner, A. M., Myers Park, CWioUe, NTcT
DONALDSON MILITARY SCHOOL
FAYETTEVILLE, Jf. C.
A high grade military school for manly boyt. A tchool with an Atmos
phere and one which only desire those boya who are pf the right sort.
Pplondid campus of 450 crci of woodland, with two large lake, tit
out door sports, athletics, etc.
The tchool maintain! a teacher for every fifteen boyt, affording the
maximum of personal attention and individual instruction.
i'or catalog, address .
COL. W. T. KOHR. Superintendent '
ill,, n .
f W 7 " 4 CI m d
7 OAK lOGlT, M, c
. - esse . as Uiirrivra .
.-!UlUtl1b SW
tWnorfr: ' W fcUu V
narstloo that ow... th. .J'l?Ll","m"nil "d sdio nine ai.i.. i
PiwritL ,r... :L""". """" umnnsa snd .dinini. . :"."'
and u VJZ cc..n,iallni,,lt. tfJ"V.
choolbulldlnga H,e..t,J" " f-rnu.
acs .t. ,, i infl-"
'8urT. hnrourhlv wrerln. i,.- .
nre. isscning hookkeenine mZi
fcuslc Athle?lcainco.gynviShh'l and
Oak Ridffe Insiitutc,
akKldae,N.C
YJ s
More Business and Better Business is one direct result of
- ?
using The News and Obsenrer Claul&cd Ada, !
- -e-t ..
h