The weekly times-record., 1913-12-18
AS TO FARM ERS.

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have taken view that is borne out
by conditions as we know of them in
this state. The farmer may be greatly
abused as a class but if so we are
not aware Of it IN the West and from
the following, written by an eastern
man, we gather that they are not bad
ly treated in the East.
The farmers vote is large one and
politics recognizes this by almost uni
versally paying some tribute to it on
occasion. The atmosphere of Wash
ington is nearly wholly political and
It is natural that the President should
be unconsciously Influenced by the
predominant sentiment. And so, as
sistance to the farmer was given an
important position in the message,
second only to the appeal for Currency
legislation.
Mr.. Hemphill, President f the Guar
anty Trust Company, in commenting
on this, says that with regard to rural
credits, personally, he does not think
1t is good thing to encourage credit,
and that thrift and saving should be
advocated instead.
President Wilson says that we have
left our farmers to shift for them
selves in the ordinary money market.
The Agricultural Departments en-
deavors to make farming an efficient
business and to teach the farmers how
to do it, are undoubtedly of the great.
est benefit 1t is question, however,
whether the farmers bad treatment in
the way of loans has not been exag-
gerated. 1t is generally true that the
thrifty farmers can nearly always OBJ
tain accommodations at fair rates in
the communities where they live and
where there is nearly always some
prosperous money lender among their
number to whom everybody applies.
The farmer who S not thrifty, of
course, has a difficult time and pays
higher rates, but it is hardly good bus
iness to make his credit constantly
and easily available" and to enable
him to command, when he will, the
capital by which to support and ex-
pand his business" Shifting for
themselves in the ordinary money
market" is the necessity, and often
the salvation, of most business men.
Credit is one of the functions which
can only safely be determined on bus
iness principles, and legislation, which
attempts to make it unnaturally liber-
al, is sure to bring disaster. 1t is a
question whether even in the matter
OF rates farmers are Disseminated
against very much, as compared with
merchants. 1t is true they pay high.
er rate of interest, but the merchant
who has a line of credit at his bank
is expected to keep there also bal
ance on deposit, without interest
somewhere in the region of 20 per
cent. of the line of discount granted
And this adds one-ffth to the rate
which he is supposed to pay.
The figures of the Agricultural De-
partment, published about a year ago
give the average rates of interest paid
by farmers in different parts of the
country and those paid by merchants
In the same locality, and the farmers
average rate is not much, if any, more
than that paid by the merchant, if the
percentage of depotis balances is fig
.ured against the latter.
This does not mean that the farm
ers' position with regard to credit ia
cilities may not be improved. He is
now, of course, at disadvantage be
cause of general lack of promptnes!
In meeting his obligations, the pay
ment of which depends not upon whe1
the note falls due, but upon when the
exigencies of the crop or his decision
to sell his products, allow conversion
of his assets into cash, whereas thu
& merchant is supposed to meet his pay
ments promptly when due, improving
his credit by such action. When tht
finances Of farmers are organized, a!
they are abroad, by combining re
sources and issuing debentures guar
anteed by the individual farmers O
the locality, the rates of interest which
K the farmer has to pay will be material
1y reduced and max go even below
those charged to the merchant. AL
this, Of course, will tend to make thu
# business of farming more efficient, an(
Il to lower, consequently, the price O
y living, which is much to be desired.
n MORE IMPORTANT