The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-01-07

tenants were b to give good security
or indoTsed note for a loan. Of these,
in some communities, over a third we're
unable TO secure short-time loans and
20 per cert. were unable + secure long
time loans. Mortgages appeared to Be
the nlajn security. Local banks are the
principal source of agricultural loans,
supplying fully half the credit, country
stores r a bag factor, and neighbors
and individual lenders also figure.
In some cases industries which have
close relations with the farmer have been
compelled to take measures to help him
with his burden of high credits. In. the
west the sugar beet factories cooperate
by making it easy for the farmer TO buy
seed and they contract for his product
in advance at a fixed price. Some of
the factories, IN order, to get the farmer
interested IN sugar beet growing, pur-
chase land and work it to demonstrate
the great possibilities of the crop and
then self the land on easy terms to
purchasers. s4
In Europe systems of agricultural
credit have been thoroughly worked out.
In Germany the credit machinery
includes a system of popular agriculture
banks, most of them based on the prin-
ciple of cooperation among farmers, and
the Landschaften, or cooperative agri-
cultural associations formed N various
localities. the members of which pledge
their united resources TO the credit of
the association which is thus able to
borrow money at a low rate and re-lend
to individual members at practically the
same rate. Fifty farmers form the
average membership of such cooperative
organizations.
In France the famous system of mort
gage banks known as the Credit Foncier
is the fountain-head of farm credits.
This organization loans money for long
terms on farm mortgages at AZ per
cent. and issues bonds against the mort
cages at 8 per cent. The bonds are
readily negotiable, even at the low rate,
because of a lottery, feature attached to
the system by which certain numbers
draw liberal prizes. The mortgage
banks enable the farmer to buy his land
and give him a long time to pay. Mort
cages may run twenty-five or ever fifty
years, while in this country five years is
nearly the limit and renewals are .ex-
pensive for the farmer.
While these systems are instructive
e for American study, it will require
more than governmental or state fat to
cut the interest rates charged to farmers
in half. The mortgage charges to the
German farmer are half those levied on
the American farmer, but the German
farm lands are twice as productive. As
an investment they are 100 per cent.
better. So it is apparent that the American
farmer must get better results from his
land and make the farm a better risk
before he can secure, credit on terms ap-
preaching those enjoyed by French and
German farmers.
In Northern Europe the big increase
in farm Yields, as is pointed out in a
report Just issued by the Department of
Agriculture, has come during the past
half century, largely through the ex-
tension of sugar beet culture in rotation
with crops of staple grains on the same
land. The culture of the beet, from
which Northern Europe now derives all
its own sugar, requires deep blowing and
thorough working of the soil. 1t has
become, in. Europe, the basis of a system
of scientific agriculture which has re-
~juvenated lands formerly supposed to
be worn out. While beet culture in the
United States is still in its infancy the
highest agricultural authorities, including
Secretary Wilson and DR.. Harvey w.
Wiley, agree that its encouragement will
result in restoring this country to the
commanding position among food pro-
ducing nations which wasteful farming
methods have lost to us, Similarly, by
making the American farm twice as pro-
ductive as at present, it will help to
secure far better terms of credit for the
farmer.