The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-21

FARMER HANDICAPPED

nsul~Generai JohrL Griffiths Of
Reports:
A retail merchant with very limited
capital and the small farmer are ind
ing 1t increasingly difficult to borrow
money from banks In England. The
private banker has almost entirely
! disa ppeared from the English coun-
tryslde, having been replaced by a
branch cf a Joint stock bank with
central Offices in London. Formerly
I'm the village and shire towns the
( private banker had a very wide &C
quaintance and knew quite Intimately
/ the character of those who came to
/ him for money. He did not loan SO
/ much on acres and crops and cattle
/ AS upon industry and integrity~~upon
his knowledge Of and belief In the
man himself The small merchants
and farmers were accommodated with
such loans as they needed at a fair
/ rate of interest The representative
of the Joint stock bank who looks
after his principals interest lacks, not
I only the personal knowledge which
! the private banker possessed, but also
his power OF initiative. He Is re-
3
1 10 Rotue higher authority. or else turns
/ them down promptly with the knowl-
edge that his employers are anxious
( To consolidate funds as far IS possible
In London, so as to he able TO make
large loans TO the more important
+ companies
/ The unfortunate condition Of the
small borrower. In town and country
alike. IL simply the result, or course.
of that great economic movement
which for many years past has been
consolidating capital. developing large
department stores. combining indus
tries. and thereby rendering Il more
and more difficult for the man with
restricted means TO carry on bust
ness or operate farm,
The conditions In Scotland seem 10
be somewhat different from those
/ prevailing In England. The general
/ manager OF one OF the large banks In
London states:
Scottish bankers from the very
/ beginning have always supported the
small asrieulturist and shopkeeper or,
In fact, anyone In a small way of bust
ness. TO an extent almost unknown
south Of the Tweed The assistance
/ so rendered has been through the
medium, OF what are known as cash
credit bonds small farmer goes
| 10 a bank and satisfies the local man
ager that he is deserving OF credit To
enable him TO purchase cattle or seed,
ETC. required for his farm. Then two
Bneighhoring farmers who know the
applicant to be reliable sign a cash
credit bond or guaranty and the bank
supplies the money. It lis rarely that
A bank meets with a loss In making
advances of this nature. 1t seems
pertinent to add that the large English
bank amalgamations have been dis
advantageous to the small borrowers
in the Provinces. The little country
banks used to consider their clients
requirements. but now ii Is said. since
the absorption of the latter, money
collected in the country gravitates to
London. where IL is loaned out In large
sums"
There is one English bank at least
which assists persons to purchase
small agricultural holdings and adj
vances money to make improvements
thereon. and also for procuring stock,
] implements. seeds. etc, This bank un-
dertakes to deal specially with each
customer, taking into consideration
both his moral and his financial
standing. 1t lends money in the usual
ways practiced by bankers, by over
draft, by straight notes, etc. In addi-
/
installmant notes. charging 10 to 2
per cent, the interest being calculated
in advance and added to the principal,
so that IN reality the bank receives a
very high rate Of interest But 1t does
not charge the usual bankers COM
mission in negotiating the loan.
| There IS another bank which makes
q specially of Ioaning to agriculturists'
advancing up to two-thirds OF the
value Of the land secured by first
mortgage. This bank also advances
on crops. live stock, etc. usually by
means Of overdraft, with a nominal
charge In addition to the interest for
carrying the account. The manager
of this. bank stated that 1t Is the
tendency OF English banks to con-
solfdate and centralize. thus with
drawing freedom Of initiative from
local managers. The result of the
difficulties which surround small bor-
rowers has given considerable
impetus to the cooperative movement
in Great Britain.
+ The Ghost Breaker, the play which