The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-01-17


Iquested, leaving ~ per cent of all
loans desired In the field of what
might be known az short term credit
requirements.
1t appears from this that what we
want is some readiuatment of the
credit system which viii provide for
long term loans. and that there is no
demand worthy OF the name for The
short term loan in the northwest
Such short term credit is now fur
nished through the banks, by mer-
chants through their stores, and by
machinery companies. Consequently,
the proposals to establish in America
such organizations as the cooperative
credit societies seen In Germany, Dem
mark, italy and elsewhere are hardly
mind that some notifications of the
present banking laws viii make il
possible for farmers TO secure loans
on short time paper as extensively as
seems to be needed.
Study Banking Laws.
In this connection we again sug-
gest that a careful study OF the pres
ent banking laws be made, and 1t Is
the opinion OF your committee that
one OF the necessary reforms in the
present national banking laws is a
change which will permit banks to
loan money to farmers without taking
mortgage security, just as they do to
business men in other lines. In this
connection Ii should be said that the
farmer must change his methods OF
doing business; he must keep books;
he must systematize his investments
and sales and be in a position to
furnish to the banker, as the business
man does, a reasonable statement OF
hts affairs.
Turning TO the second phase OF the
problem, it would appear that there
is need in America for a more salts
factory method OF securing funds on
long time credit. A careful study
made by your committee goes to show
that the three states represented in
this convention viii require during the
next ten years upwards of 81, 100000, :
600 for the renewal Of buildings,
machinery and fences on their farms
and the proper improvements of the
same. That this can be done salts
factorily through existing methods of
loans by insurance companies, mort
gage and trust companies is to be
doubted, and unGuestionably through
investigation OF the possibilities OF the
present banking laws and h possible
adoption OF a law for the creation OF
sI~HOTLEdEG GOiISAIS OnNG0 0RpA AAN
principles found in the case of the
French societies, or for that matter
like those in Germany, might well be
established here.
Before we begin any legislation,
however, it is essential that the prob
lem shall be clearly understood, and
while there is an immense amount Of
material to be found about what has
been done In Europe, we know very
little at first hand of our own needs
In This state and in the other states
of America. Your committee has tried
to get at the actual facts In so Tar
as It was in its power, but 1t realizes
the serious limitations under which 1t
has Iabored n the inaccuracies that
are inherent in such an investigation,
and il realizes too that an investiga-
ton on broader lines, as before sug-
gested, is necessary to a fair under
standing Of the problem. Your COM
mittee believes that a national inyesti-
CATION along these lines should be UNI
dertaken and at once, and it considers
II pertinent to point u that such an
investigation can be conducted at an
average price not TO exceed 81
per county for the entire country, and
in fact with our department OF agri-
culture at Washington, and our state
agricultural experiment stations, COM
petent to conduct the investigational
phases OF this work rapidly and well,
1t should be possible TO secure within
a period of three months from the
time the investigation is started
definite reports hat will show from
every section of the United States
what the farmer most stands in need
Of.
Any proposal to take over a plan
which has been created in another
land and made to meet their condi-
tions should be looked upon with sus-
picion, since the very cause which re-
suited in the creation Of these asso-
Citations abroad differ materially here
or are absent entirely. If should be
further remembered that lower rates
of interest will not depend upon the
creation of banking concerns, but
must rest fundamentally upon the
moral risk involved in the loan and
upon the progress which is made in
making farming a real business.
In conclusion your committee wish
es to call particular attention to the
fact that thus far all discussions of
the financial needs of the farmer have
been based upon assumptions rather
than upon direct knowledge Of the
facts. 1t has endeavored as far as was
possible to secure some foundation
facts upon which to base a proper and
adequate report, but the time has been
too short and the field Of inquiry too