The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1913-02-20
FINANCING THE FARMERS.
Machinery and Fertilizer Amount to
About S2OO,OOO,OOO.

Leading hnanclal institutions are
at last getting into much more dl-
rect relation with the capital re-
uuirements of farming in this coun-
try. The discussion Of agricultural
credit has awakened financial lead
ers to an appreciation of the vast
field as yet almost untouched in the
furnishing of capital for the work
ing operations of agriculture. A
step in that direction appears to have
been taken in the issue of the S6,-
100000 ) per cent. collateral gold
notes. These issues, it will have
been noticed, are based on the guar
antee by the manufacturers. The
manufacturers guarantee the security
of the issue in question, forming the
basis for a credit which banks assist
in distributing as investment securi-
ties.
Reference to the amount Of busi-
ness done by the agriculture imple-
ment companies in the United States
shows that in this field alone there
is wide scope Of investment actiy-
ity. Farm implement manufacturers
turn out a product valued at from
1925. 100000 to $50, 100000 each
year. A large part Of this product
is sold to farmers on notes. which ma
ture some time during the latter
stages of the year. between July i
and December 3 or later While
these notes run for a longer time
than ordinary credits of manufacture
ing and mercantile business, they are
none the less secure taken as
whole. Not only do they represent
different localities, but also different
crops, different system of farming
and different periods of time. They
do not mature all at once but fall
due during the latter half Of the
year when the banks are most in
need of maturing resources for crop
moving and other uses.
One of the largest bills of farm
outlay in the course of the year is
for fertilizers. 1t has been asked
why some such system as is afford
ing good market for farm credits
arising from implements notes could
not be made equally available as in
the case of fertilizers. A well-known
bank official to whom this question
was asked, replied: lone may not
say that is not to be- The fertilizer
industries dispose of their annual
output in much the same way and
there is no reason why they should
not utilize these instruments as
basis of floating desirable investment
securities of short-term character.
The fertilizer manufacturers are
now entering upon the busiest stage
| of the season in distributing their
output to the more southerly dis
tricts of the cotton belt and the corn
belt. The movement usually begins
about the beginning of the calendar.
year and runs up to March or April.
| Formerly it was much more concen-
! trated in the earlier months than
| now. Now cotton planters begin
earlier to get ahead of the boil
weevil. Since the method of apply
| ing fertilizers to the growing crop
has taken the place Of applying it
at planting seasons only, the period
| of distribution has been somewhat
extended to the advantage of the
manufacturers, the railroads and the
| farmers themselves. The output from
| these industries is. not less than
$50, 100000 a year, a great part Of
which is bought on eight or nine
months notes, especially in the cot
| ton bell. li.--Wall Street Journal.
| Enrn6 nnnI