The citizen. (Frederick City, Md.) 1895-1923, 1905-04-14

A special to the Philadelphia
Record from Sioux City, Iowa,
says.
The amount of mischief that a
million farmers can accomplish,
when they have a few hundred
millions of dollars to their credit
in the banks. is something start
ling. The State of Iowa is ust
finding it ont.
Although it isn't very general
~ known. there are more banks
in Iowa than IN any other State.
They are generally small banks;
the farmers own most of the stock &.
Twelve years ago there was some
thing like $50, 900. 900 on deposit
in the Iowa banks; now there is
about S400, 100000 and every
bank statement shows large III
crease. 1t is chiefly money be
longing to the farmers who own
the banks.
The gain in Iowa bank deposits
was IA matter of congratuLatlon TO
e erybody in the State for long
time But now it is getting TO be
a matter of concern tO good
many people. The farmers are
given to doing strange aud nnac
countable things with their money.
They interfere. at times, very
seriously with the arrangements
of other folks.
For instance, the farmers got an
idea fifteen Years ago that
telephone would be a good thing
for them. LII the face of a power
iul monopoly which owned almost
all the city and town exchanges
the farmers proceeded to build a
network of rural lines all over the
State. Then they entered the
cities and built city and town eX-
changes to get connections for
their rural lines. They have com
pletely defeated the telephone
company. And it never would
have happened if the farmers
hadn't had the money.
That is only an instance. When
the farmers began to feel pros
porous they drew money out of
the banks and went to paying off
the mortgages on their farms.
which were largely held down
East. They have continued at
this nefarlouS business till the
farm loan business in Iowa is
about spoiled and farmers actual
" want money at less than 3 per
cent. aud sometimes get it. Ii
they don't get it at their own
prices they refuse TO borrow,
which is disastrous TO the lender.
Another dangerous tendency
has been noted in the matter OF
electric iuterurban roads. The
farmers have discovered that local
freight and passenger rates are
high, and have been using a good
deal of their money to finance
electric lines about the country.
These are the farmers railways,
aud they are all doing well, he
sides saving money for he farm
eIs. to increase the deposits and
thus enlarge the capacity of the
farmer for trouble making.
With the enlarged capacity, the
farmers disposition for trouble has
intensified. He got the idea that
he was paying more for lnm Der
and coal than he ought to, and
began starting cooperative estab-
liShmeutS to handle TheSe things.
Then the larger co operative con
Germs, of which the one at Rock
we'll is the most widely known
representative. developed.
Afflicted with strange halluci
nation to the effect that the big
grain buying corporations which
own the eleN ators along the rail,
roads we've making more profits
out of the grain business than they
ought, and not leaving fair
share to the people who raised it,
the farmers drew some more of
their dangerous money from the
banks and built cooperative ele-
vatOrS alongside the so called
"tru>y" elevators. There are hun
dreds of co operative or farmers
elevators. The business they do
is growing, and the trust" eleva-
tors-complaining loudly that
there is no trust at all-are con-
stantly losing trade.
According to all the rules of
sane finance, the effort of the
farmers 10 do these things would
have resulted in their financial
ruin. Yet, unaccountable and
irregular as it may appear, the
amount of money to the credit OF
the farmers in the banks that they
own keeps on increasing at rate
calculated to make the Standard
Oil Company wonder, after all, il
it is doing all the business in the
country.