Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-05-20
RURAL CREDIT IDEA
aurens Legislator Gives His Views on
Subject.

aurens Legislator Gives His Views on
Subject.
Editor Of The Yorkville Enquirer:
While there Is so much discussion Of
the necessity Of system Of rural cred
its wish to call the attention Of your
readers to my proposition that will
come up for consideration in the next
legislature, to submit the question to
the people for the state to borrow mon
ey to enable the state to provide q sys-
tenn Of long time loans to farmers, and
other home owners and to enable the
state to purchase and develop lands
suitable for the purpose Of furnishing
homes to home-seekers upon easy
terms
Some persons contend that this
solve. / realize the benefit our banks
and other business interests have been
in developing our resources, but don't
believe our banks are able to give the
people relief from our short time loan
system, that is partly caused by the
fact that our banks have to borrow
from ten to twenty million dollars ev-
cry spring from New York and other
money centers, in order to carry on the
business of the state. Our banks can
only obtain this money on condition
that 1t be paid back in the fall and
are compelled to lend 1t to their Gus
toners upon the same terms. In the
fall, however anxious our banks may
be to relieve their patrons by exten-
sion Of time Of payment, etc., IL New
r. o,,lr fhax, hnu
PEELED to press their patrons to protect
themselves. This places the industries
and resources Of the state at the mer-
cy Of six or eight months call loan
from New York, which submit, is
dangerous to the welfare Of the people.
We felt its evil effects during the panic
of 1907, when during the fall our banks
Of the south and west held twice as
much money as the law required, while
New York had loaned more money
than the law allowed. When we sought
loans or extensions of time Of payment,
our banks would tell us they would be
only too glad to accommodate us but
New York had put them on notice to
look out for heavy drafts any day. This
showed that New York could force our
banks to hold on deposit money on
which they were paying interest, which
tney did not udTe to lenu W Us WHICH,
we needed 1t most.
My proposition would enable the
state to bring In money that would be
free from any outside influence and
would enable the state to provide for
loans to citizens on their farms and
homes upon terms Of small annual
payments, with privilege Of paying In
full whenever desired For instance,
II $1,000 was loaned at per cent in
terest per annum, a man could pay
500 every year for fifteen years and at
the end of 16 years he would only have
to pay about $65 and the debt would be
paid. At present on account or the
scarcity Of money and difficulty Of re-
newals, many persons have to pay that
much a more on that amount every
year as interest, discount, attorneys
fees, recording new papers, etc., with
out being able to reduce the principal
at all. I believe the state would be
able to provide better terms than the
above, but I think that Is a conserva-
tive estimate.
I have not been able to obtain figures
from the census Of 1910 but the census
of 1900 shows that out of 107,2S0 white
families in this state, 53,22S have no
homes, and 9,068 live in mortgaged
homes This means that about 100000
white people are homeless, and with
the distressed conditions brought about
by money stringencies, panics, failure
Of crops, sickness, fires, etc., 1t Is only
a question Of how long 1t will take
those in the mortgaged column to drop
to that of the homeless, and those
owning their homes and farms to join
that of the mortgaged, and finally end
In the ranks of the homeless.
My proposition would not injure any
legitimate business but would enable
the state not only to protect citizens