The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-02-19
Cheaper Money for Farmers.
Wilmington Star.


country will sail this spring for Eu-
rope TO investigate the cooperative
rural credit system that have proven
so successful in France, Germany, 1t.
ally and other continental countries
1t won't do any harm, Of course, for
the committee to take the trip and
investigate the systems first hand, but
1t strikes us that the government at
Washington has about all the informa
tion that could be picked up by the
committee. If 1T has not, it could cas-
lily get the information through it's
representatives in the countries that
have systems under which farmers
can borrow money at as low rate as
any other class Of borrowers
1t Is estimated that the average
American farmer pays 1-2 per cent
on the money he borrows to aid him
In his operations. The probability is
that the larger per cent Of rural bor-
rowers pay more than that. Actual
loans of money may cost them 8 1-2
per cent, but there are thousands who
cannot borrow money but who do get
credit for their fertilizers and farm
supplies. Those acquainted with con-
ditions in the cotton belt know that a
farmer who buys his supplies on credit
pays an interest in credit charges all
out Of proportion to the profits on his
crops The fact is, the man who
farms on high credit Is doing business
on a basis that would ruin any other
business.
Since 1t is known that agriculture
Is handicapped by heavy costs on pro-
duction we don't know of any more
effective aid that could be given to
southern agriculture than by the
movement to bring about a system
that will furnish farmers with work.
Ing capital at as low a rate Of interest
as is paid by those engaged in any
other legitimate industry. Many more
men would farm if they could get
financial encouragement, and even
more would enlarge their operations
II they could get the money. We mean
men who are trustworthy. not the
class that could not be trusted with
money. However, the rural credit
system Of Europe is one that capital
ICES what a farmer owns and his as
sets become bankable 80 he can bor-
row money at low interest on his own
hook without being under obligations
to anybody. Even should he have en-
dorsers the farmers assets make his
endorser of rural zone bank perfect
ly safe.
The South has it's own peculiar ag-
riculturai problems TO be met, and it
is easy to conceive that the agricul-
tural problems vary in each part Of
We are satisfied, however
that a study of our own problems
would aid us in bringing about a rural
credit system that would fill the bill
in the South.
We have long ago become satisfied
that the European system is as appli-
cable in this country as it is in that
country. and the American committee
that is to visit European countries this
spring will find it so. 1t is proposed
fnr \, of TO
tatives to Europe as members of the
committee. 1t will cost ST.
500 to pay the expenses of the two
representatives. The Jacksonville
is urging Florida to send
a couple of representatives on that
errand, and in doing so that paper
says
Nowhere more than in the South
are the advantages in the direction Of
cheap money for the farmer needed
for the development of agricultural
wealth. and agricultural wealth means
more money for city business in the
long run. 1t is often said that no city
is permanently prosperous and grow
ing that Is not backed by a prosper
our rural district tributary to it, Cheap
money means not merely money lent
at low interest rate, but also money
lent on time long enough to allow the
borrower to turn it over and make
n profit with it before he has to pay
back interest and principal.
Florida has some peculiar agricul-
tural problems to solve, and money is
needed to solve them. Probably no
other state has so many small farms,
unless it be California. 1t is the small
farmer who needs money oftenest, and
he generally needs it at low interest
and on long time-he needs to bor-
row i'm small Cllp1S foo rrhnn tnn