Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1911-05-19
The Banker and the Farmer.

Iowa Bankers. at the seventh Auuual
Meeting at Osceola, Iowa, May End.
There are in the state of Iowa 2l6,'
900 farms, averaging around 1856 acres
each, with an annual productive
power of from 50 to $50 an acre, the
total being between $3.50, O0O, 900 and
$40, OOO, 900. This farm wealth, unlike
the wealth of the manufacturer OF
transporter or distributor, is a new
creation from the light, the heat and
the moisture which are furnished by
an all-wise Providence from year tc
year. 1t is an actual contribution tC
the wealth of the world; and If prop
erly used, to the real "welthe' OF
well-being of mankind.
Practically every dollar of this new
ly created value should find its way
into the country banks, and through
these flow as a fertilizing stream into
the banks Of the larger cities, and
eventually into the banks of the me.
tropolis: and would do so IL farmers
and bankers alike had a clear under
standing of their duties to each other.
l said duties" but if we drop down
a bit and take a lower point of view
and a Interests" l know of no two
classes Of people whose real interests
are more closely linked togeter than
those of the farmers and the bankers,
especially those of the country banks.
The farmer needs the bank: the bank
needs the farmer. The farmer could
get along in some sort Of a way, but
greatly crippled in his powers with
out the advice of a prudent, honest
and intelligent banker.
Millions of dollars have gone out OF
Iowa that will never return, because
the farmer has listened to and believed
the stories of spectators who care
nothing for him except to get his
money. II these investing farmers
had had confidence in their banker,
in his honesty, in his integrity, in his
financial ability and judgment, they
should have consulted him. He is a
small banker who will discourage a
wise investment of the farmers money
because he may think that it will de-
crease his deposits. He should look
upon his farmer deposition not as a
nan to be exploited, but one to whom
he yves a service, a service which, If
he Is a broad enough man, he has the
intelligence to render.
The banker should understand thor
oughly that the very foundation of
his business is laid in the success of
the farmers Of his community. The
time has passed when the banker secur-
ed his money from the east and the big
cities, to be spent in exploiting a new
country, and from which he would re-
ceive a rate of interest measured by
the necessities of the borrowers. The
actual cash deposits of the banks
must hereafter be grown from the
land itself and by the farmers them
and this leads me to speak Of
what Is really the greatest service
that the banker can render the farm
er, namely, that of aiding and encou
aging him in the development of the
resources of the farm.
Every banker in riding through the
country and noting a farm that Is de-
In fertility should realize that
to that extent the resources of the
bank are being dried up, and that
every farm which is maintaining or
its fertility Is contributing
his own personal welfare and that Of
the stockholders Of his bank. l be-
lieve the bankers In Iowa are realiz-
ing this as never before; that they are
nc longer regarding farmers as geese
to be plucked, but as co-workers with
them in the great task of providing
for the legitimate wants Of the people
OF the state, as well as feeding the
hungry states and nations of the
world.
The question arises: How can the
banker help the farmer? First, by
winning his entire confidence, and by
realizing that he owes him a service,
service for which there is ample re-
Enumeration. The relation between
the farmer and the banker should be
one of the utmost confidence. II the
Individual banker Is not worthy Of his
there are other bankers In
the same town or In a neighboring
village, town or city.
Next, he should encourage the farm
er to take greater and more intelli-
gent interest in his own work. He
can familiarize himself with the best
books on agriculture and the best
newspapers, with farm machinery
that has been found practicable, can
speak to the farmer about these
things, and thus Undue him as far as
possible with the spirit Of the new
agriculture. Many bankers are doing
this, some wisely and others u%nwisely.
They are doing 1t unwisely when
they buy agricultural papers In bulk
at a mere nominal price less, a good
deal, than the cost of the white paper,
and make presents of them to the
farmer, signing letters Of recommen-
dation, which the farmer at first sup
poses to be the individual opinion of
the banker, but which, as a matter of
fact, vas written by the publisher,