Morris tribune., 1913-01-31
Local notices, Ave cents per line.
Gard of Thanks, twenty-five cents.
Lodge resolutions, S1.00
Legalnotices at legal rates.
THE BASIS OF FARM CREDITS


Different systems of agricultural loans in vogue in
Europe have of late attracted considerable attention in
this country and these systems being studied with
view to ascertaning whether they offer any suggestions
for the lettering of credit conditions in this country
President Taft called attention the fact that farm
credit extended ia Europe for something three per
cent while this country it is eight per cent Yet
this does not mean that if the European system in
troduced here interest would be only three per be-
cause the market money about twice that
The real question which confronts then whether
the farmers can obtain money the carrying their
business as favOraby other businessmen can if not
why not.
There is doubt that in the past, farm loans have
been made candalOusly high rate, tho the lender
did not receive more than the market his money
This condition was due to the ubiquitous Commission
pan which permitted the broker loan at from eight
to ten per cent what he obtained from five per
cent This simple service of bringing the and
lender together received remuneration way of pro-
portion the service rendered. especially when it be
remembered that in every city there banks which
were prepared handle this business at much less cost
This business of exhorbtant charges for farm loans
is now considerably regulated by competition and the
only question left be determined is whether the
farmer is given equal chance with other business
engaged in other lines The OF opinion is that
he is not and if not what remedies be applied.
Two remedies have been suggested which appear
good and adapted conditions in this country
The first is that the banking laws be SO amended as
to give the banks more latitude in losnng improved
farm lends The bank is naturally the financial center
of the community and there why it's business
should not be SO extended to take in all legitimate
classes of financial business handled in the community
There appears be for argument this point.
and would certainly be economical than the
system Of carrying SURPRISES at low rates of interest
in the large financial ceners while local farmers pay
ing high rates loan agents The second is that
the farmer who has difficulty in obtaining credit at his
local bank reasonable rates must do the any
other business man himself worthy of credit
At this season of the year. business is called
upon by the commercial agencies make statement
the condition of his business for tie past year. how much
his gross sales here and how much his assets increased
Inventory be given and multitude of other
facts which bear upon the business mans worthnes
credit.
Now the farmer who today his business that
at the end of the year ne tell how much he has made
from his business who only goes in for diversified
farming but can tell which one his crops the
proftable-such farmer has difficulty in obt ainng
credit at bank the any other business man,
on terms as favorable as does the business
1t will be noticed that the remedies here proposed
change in the financial system and change in the
business methods the farm. To adopt either with
the other would be Ineffective and they go HAND
in hand the condition which complained of
Yet the farmers who would be in position to take advan
age of any new financial sytsem which may be adopted
should be prepared for by putting business
on his farm which will enable him to tell where his osse
and profits come and thus diminish the losses and in
crease the profits Such system of doing business is tn
basis of all credit-either to farmer business