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Duffus, William M. / Report on agricultural settlement and farm ownership. Part I: state loans to farmers
(1912)

Chapter VIII. Conclusions to be drawn from experience with state loans to farmers,   pp. 144-146 ff. PDF (636.0 KB)


Page 144


144     WISCONSIN STATE BOARD OF PUBLIC AFF.AIRS.
                       CHAPTER VIII.
 CONCLUSIONS TO BE DRAWN FROMA EXPERIENCE
          WITH STATE LOANS TO FARMERS.
  It is impossible to read the history of state loans to farmers
in New Zealand and Australia, involving as it does the loan of
more than $90,000,000 on farm mortgage security, without being
forced to the conclusion that a system of state loans to farmers
can be successfully managed even under a democratic form of
government. It is equally impossible to read the history of the
loan of state funds to farmers in this country without being
compelled to acknowledge that it is possible to successfully oper-
ate a system of state loans to farmers even in the United States.
  It is true that New York, New Jersey and our own state have
had unfavorable experience with their attempts to derive profit
from the investment of trust funds in real estate mortgage se-
curities. This experience, however, seems to have been due to
crudely drafted laws and lax, incompetent, and in the case of
New York and Wisconsin. corrupt administration of the laws.
It is no more indicative of a probability that a system of state
loans to farmers would fail in Wisconsin than is the ruin of a
bank by poor management or by a defaulting cashier indicative
of the probability that for similar reasons all banks will fail.
As has been shown in the preceding chapters, most of the states
which have loaned money to farmers in the United States re-
port that they have done so without losses to the funds from
which the loans were made. There is no reason to doubt that
the state of Wisconsin 'could manage a system of state loans to
farmers as successfully as any state in the United States.
  The essentials of a successful and equitable system of state
loans to farmers, as demonstrated by the experience of New
Zealand, Australia, the eight American states which now permit
the investment of school funds in farm mortgages and the three
states which have abandoned this policy, may be summarized as
follows:


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