The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-06-28

IA. G. Osgood Of Neville.
Auditing-H. w. Hansen, Kenmare;
r.. u. Robertson, McClusky; e. G..
Bloeduw, Alfred.
Nonlinations-T. w. Cathrows Bot
tineau; f. Al. Irish, Fargo; r. Al.
Barron, Minot; e. III. McHugh. Man
dan; Paul Adams, LaMoure.
n. r. Graves Address.
The Evil Results OF too Much Credit
was the subject Of an excellent address
by FL. 7. Graves, president Of the
James River National bank, James
town, N. d.. before the bankers con-
vention yesterday afternoon at the
Orpheum theater.
Mr.. Graves spoke of the surprising
number Of farmers, merchants, profess
sional men and business men that are
In debt. If the truth were known about
the business men in any one commun-
ity, people would be very much sur
prised to find the amount Of indebted
ness so large, was the opinion Of Mr.
Graves.
The responsibility for this over
credit, Mr.. Graves lays at the feet of
the merchants. He then goes on to see
whether easy credit has made the
farmer better farmer or a better bor-
rover. and comes back to the merch-
ant shortly. He went back to the days
when the farms were small and the
farmer practically independent. Then
| the farmer and his family lived a life
of self-denial and produced almost
everything needed for himself and
family. In those days, the farmers
business was carried on without the
use of credit. Thus he had few debts,
for the simple reason that there was
no such thing as credit.
Today the farmer has automobiles,
threshing machines, steam plows, and
extensive buildings for which he can
not always pay cash. This is the bad
feature of the easy credit system, says
Mr.. Graves. He then makes the state
ment that easy credit has not been a
good thing for the farmers.
Another bad feature that obtains in
many farming localities, pointed out
by Mr.. Graves, Is the tendency of the
farmers to hold their grain for specu-
lation. or to buy land with the ex-
pectation of a boom. This is bad for
the credit of the country and Mr..
Graves urged the bankers to endeavor
of the farmers,
Mr.. Graves then returned to the
merchants, whom he holds largely re-
sponsible for the over credit of the
country, and endeavored to point out
how such condition of affairs comes
about. The wholesale houses, he ex-
planned, urge the retail merchant to
buy a large stock whether the cash is
forthcoming or not. The later finds
that he cannot sell his goods for cash
and must either sell on time or let the
stock go out of style on the shelves.
He is unable to collect and cannot meet
his wholesale bills. Then the unfor-
tunate merchant goes to his banker
for assistance and by reason Of the
large stock on hand, gets the banker to
make loan that is poor.
Because of the bad condition OF af-
fairs last fall" said Mr.. Graves "the
banks were forced to carry over prac-
tically all of their large loans until
this spring and then this spring they
were forced to make more loans" This
Is the bad feature OF the over credit
system that Mr.. Graves endeavored to
bring out. "The financial success of
the farmer Is of great importance"
said Mr.. Graves in concluding his ex-
cellent address, because all the pros
perity Of this country comes directly
from the soil" He urged the bankers
OF the state to encourage the farmers
to keep out of debt and in this way
help to remedy the evil Of over credit