The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1913-08-21
Rural Credit Proposed by
New Wisconsin Statute to
be Thoroughly Tested.
GIVES FARMERS new. CHANCE
Farmers Will be Able to Borrow Money
With the Same Ease as City Men who
Use the Building and Loan Associa-
tions-New Law is Progressive One.

Rural credits in Wisconsin will be
of the national building and loan asso-
Citations which recently convened in
Milwaukee seems to consider will be the
most thorough method of handling the
rural credit question. The Wisconsin
legislature anticipated the idea of the
national building and loan association
by the passage of a bill which provides
for the adoption of the building and
loan association idea for the extension
of credits to aid the farmer in build
ing up farm property. A bill has been
adopted in this legislature which per-
mits the organization of both county
and state rural credit associations
which shall have the power to extend
loans to members on exactly the same
plan with a provision for partial pay
ment that loans are now extended by
building and loan associations in cities
to members for the building of houses.
The idea of the extension Of the credit
system to farmers on the building and
loan association plan originated with
Deputy Commissioner Of Banking Wild
who advocated the idea when the bill
was introduced on the subject n the
legislature which had for it's object the
providing for rural credits upon the
German plan which is rather mo-
bilization of credits for the purpose of
issuing bonds against the collective
property than plan for the extension
of individual loans.
Under the building and loan associa-
ton plan men who desire to cut out
farms upon wild land will, after they
get possession of the land, be able to
| borrow from the association sufficient
money to develop the land and then
make payments for this loan on the in
stallment plan. Larger sums car be Dor
rowed in this way than can be obtained
on direct mortgage transaction while
at the same time it has been found
that building and loan association Sc
curities are almost invariably good Sc
/ eurities for the reason that they per-
NIT of partial payments on the loans
and allow the borrower to return the
money which he has borrowed upon a
partial payment plan. More than this,
the borrower is always member Of
the association and gets the benefit al
so of the savings idea of the associa-
| ton PROFESSIONALLY there will be
many memberships taken in the asso-
citation also Of men who will not borrow
in the associations for the reason their
| building and loan association stock has,
with the safeguards which have been
! thrown around the association in Wis
consin, invariably proved profitable
investment It is a well known fact
that in cities only fair percentage of
the holders of building and loan asso-
citation stock ever become borrowers in
the association for the purpose of build
ing homes, the majority of the people
investing in the stock buying the stock
only because it offers a profitable and
secure investment for small savings.
1T is likely that the funds Of the
building and loan associations which
are organized for the purpose of ex-
tending loans to persons who are de-
sirous of improving farms will of them
| selves prove sufficient to meet the call
/ for loans which will be made by per-
sons who are building buildings and
otherwise improving their farms.
Should, however, more ready money be
needed than the association can fur
nish from its own resources because of
the fact Of the funds being tied up in
securities provision is made in the law
whereby the building and loan associa-
i TlOn can IGuISCUuuG It's IIIGo
use the funds Of these rediscounted Sc
curities in making new loans to mem
bers. 1t is said to have been the ex-
perience Of city building and loan as
sociations that their securities are cas-
lily rediscountable by reason of the fact
that banks and other institutions hav-
ing money for investment consider the
securities of building and loan assoeia-
lions as good collateral on which to
make loans.
The building and loan associations in
cities have been great factor in the
building up of homes and great many
of the persons of smaller means owe
! the fact that they own homes today to
their membership in these associations.
In Kenosha and in practically all Of the
cities of the state the building and