The labor world. [volume] (Duluth, Minn.) 1896-current, 1907-08-31
farmers BANKS WILL
SOLVE CORN PROBLEM
Grain Growers Elated With Prop
osition of American Society
Of Equity.
Farmers Are Getting Wise, And
Will Hold Their Corn to
Control Market.

money a comprehensive scheme for
controlling the crops Of the country
is attracting considerable attention
throughout the corn belt where wealth
has accumulated in agrarian circles
during recent years with gratifying
rapidity.
AS his money accumulates the corn
belt farmer is the more seriously con-
cerned regarding its care. Most OF
them, respecting the French proverb,
believe that money being fiat Is made
to pile up, although few adhere to
the round theory which teaches them
that being round, 1t Is made to roll.
How properly to care for his tncreas-
ing cash reserve and keep it intact for
the inevitable period Of financial stress
is the problem Of the hour. Conse-
quently. the project outlined in the
Examiner in an interview with Presi-
dent Everitt Is attracting much atten-
ton. al
Bankers are agreed that If the farm
ers could get together and stick
that word affords the key to the sit
uation-they would be able to control |
crop marketing and put agriculture In I
a position of independence
Favor Farmers Banks.
GAS banker I am in favor Of Civ
ing the farmer all possible financial
accommodation" said a man who con-
trolls a. national bank in central Iowa.
Take farmers deposits out Of the
banks Of the corn belt and big hole
would be made in their liabilities, and
by the same token, they would have
very little to operate on
"President Everitt Of the American
Society Of Equity takes a position
that deserves commentator from |
every banker in the country. AS I !
take it, the society he represents does |
not assume antagonism toward exist |
ing financial institutions, but merely |
wants the same accommodate ton given |
the merchant and speculator.. That |
would seem to be reasonable.
IAN elevator operator has no trouble |
in using the grain in his possession as |
a means OF raising money, and why |
should the farmer be handicapped in
that manner? A drove Of cattle or
hogs or a crib full Of corn ought to |
be a better security for the banker
than a bundle Of stocks, the value Of
which is liable to shrink anywhere
from 10 to so per cent In response to
a bear raid In Wall street.
X do not know but as a banker !
would be justified in making advances
on growing crops, the responsibility
Of the grower being. of course. fac
tor. The question Of credit comes in |
here as everywhere else, but the point !
I am trying to make Is that we ought !
to stretch a point as long with the
20 IL,
speculator. We lend our surplus
funds in the east at small interest
rates when it ought to be employed to
better advantage at home"
Campaign Of Education Needed.
Evidently a campaign Of education
is needed among country bankers,
most of whom are we'll intentioned If
narrow in their Views. According to
an observant Ohio farmer, there are
two classes Of rural bankers-the old
fogy and the chance taker. The lat
ter is risky, the former veritable
brake on the wheel Of progress.
"The old fogy banker is in a hope
less rut," he said. HE will lend
money on a mortgage, but whenever
he does any business locally it Is on
a cinch basis. What money he can
not put out in the neighborhood at
excessive interest he sends east at a
low rate. Breach local enterprise to
him and he Is horribied.
mot long ago introduced the SUBJ
ject of putting half-dollar minimum
figure on the corn crop Of Iowa and re-
fusing to sell bushel at less than that
figure, suggesting that local banks adj
vance up to 30 cents on corn in the
crib to permit growers in need Of
money to pay their obligations in
cash He threw up his hands in agi-
tated protest.
"They wouldn't stick together 80
days. he asserted. You can't put a
price on any commodity that way
1T is simply case Of prejudice
with him, and yet 10 per cent Of the
deposits in this bank were farmers
money.
What makes land around here sell
SO internally high?" he asked, adding
facetious, perhaps the owners need
the money
mo, that't the last thing thatt
troubling them." was the response
Real estate is the only reliable de-
pository we have. don't think you
coaIo Duy one OF those farms If you
made bid because somebody in the
neighborhood has a prtvious option In
case the owner should SELL"
Lack Of Confidence in Own Ability.
Inc Chicago man, ignorant Of the
American Society Of Equity idea. ask
ed why the farmers did not ret to-
gether and organize a bank Of their
own.
Lack Of confidence In their own
ability and also in any man they would
be compelled to hire to manage it."
was the response. IT the Agriculture,
interest could develop a system Of
banking with competent management
1t would be a boon. We have too
much money locked up in Iowa
money that is out Of circulation, Mil
lions are concealed either in currency
Of the farmers or In drafts on Chi
cago banks, which ara getting the use
of the money without interest"
Mes~k