The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1913-10-21
"~ovide Low
Ele.

other security and are safer ana bet
In commercial banks.
But in view OF the fact that the
great commercial bank is highly or
ganlzed for the purpose Of supplying
creot to the manufacturers, mer-
chants and business men. it would
De clmcult for such a bank to extend
It's business to the handling Of land
mortgages. There is pressing need
In North Carolina of a great State
land mortgage institution Cor some
Institution rendering similar service)
with proper capital and with proper
equipment for mObolizing individual
land mortgages placed on property
locate in the various countless and
issuing bonds against these aggregat-
ed individual land mortgages, control
led by the farmers. The form of or
ganization Of this great land mort
gage institution should be largely de-
termlned by the security behind the
collateral trust bonds and the ability
OF the institution to find a satisfactory
market for its issues of bonds, Wheth-
| er at home or abroad.
While the greatest need of the
farmer is probably for long time
credit, yet there is also a great and
pressing need Of S .ort term credit for
| NOfCn CarOuna farmers.
! At the present time the manufac-
turers, the merchants and business
men In the cities Of North Carolina
have a practical monopoly Of short
time credit. The average farmer
either has no credit at all or is COM
lpelled to use such forms Of high price
credit as he can obtain from the mer-
Ichant. We have a great many banks
in North Carolina, but we have
lscarcely and banks willing to do the
banking business Of the poor man.
1.-The farmer who has little or no prop
Ierty which can be taken by law fol
Idebt-the man who has not stored w
lcapital in North Carolina-has prac-
Itically no standing at it's banks. Thi:
|great body OF borrowers does not re-
|ceive consideration at the banks be-
cause the average bank is not organ
lied to handle this class Of business
1t is estimated that there are a
least 200, 900 persons engaged in agri
culture in North Carolina that have
not sufficient stored up property t
give them standing either at lant
mortgage, banks or at the presen
) commercial banks, but these peopl
J greatly need money at REASONABLY
rates Of interest for purchasing sup
plies. fertilizers, seed and for payin!
for labor. A cheap. safe and elasti
: by this tremendous class OF smal
farmers would work wonders in up
| building agriculture and bring mucl
!, new business to our commercial banks
Present Banking Facilities Unsuite'
to FaImer's Needs.
The small Tar Heel farmer has n
use for 9O-day loan that the com
5 Imercial bank handles, and upo
which it charged interest in advanc
, = of no q
borrowed to be left in the bank with
/ out interest. The farmer want
t money for six, nine and twelve mon
2 this with the privilege Of renewing tn
3 loan until he has marketed his Gro
! and, In the event OF crop failure, unit
he can raise another crop. Ratne
l than pay from to 20 per cent TO
e his money and have hlnlsel1 suoJecte
;. to the uncertainty f call by the bani
$ he will either join Cor be forced I
, ioin) the great hosts of farmers Wh
! have moved to the cities or become
. crop lien farmer, closing entirely tn
! door Of hope for land ownership an
8 home building. -
t the collective paper or helshpornoo
n lgroups Of North Carolina farmers
: Ias good security az the collectlV
o naper of neighborhood groups
r farmers in any other country In IN
s ;Uorld There is great ana pieSsii
Q need for steps to be taken as rapldi
n as possible to organize neighDoShoo
a co-opciative credit unions among OF
r farmers in order that they may Secui
d short term. cheap, safe, ana elast
q credit to which they are so justly eI
It titled.
n In. G Needed Form of Credit Union
O Farme1s' Bank.
f The particular form OF THIS cred
: luuion can be determined by the ptil
!. lticular locality in which it Is TO
;. lorsaniZed The credit union OF estc
e neighborhood should be tnorous =