The Richfield recorder. (Richfield, Idaho) 1909-1931, 1914-05-07
Cooperative
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and good seed will net large returns
But it takes money to do these things
Consequently there is a demand fol
loans
In America the farmer can seldom
get a loan on terms that meet his
needs. In Ireland. Belgium, Germany
Holland, Denmark, France, Italy and
elsewhere upon the continent the
banks have forced the farmers to or
ganize cooperative credit societies. In
many instances the government also
has aided the cooperative banks in
obtaining money for loans. These SO.
cieties are taking a safe, profitable
business away from the bank. Now
when it is too late the banks realize
their mistake.
The question just now is this: Will
the American bankers forestall CO.
operative credit companies by meet
ing the needs of rural borrowers or
will they force the farmer to go into
the banking business as did the bank
ers of Europe? 1t is up to them. Will
they beat cooperative credit banks
by beating them to it?
Buying Farm Easy in Denmark.
To buy farm there are a number
of different methods open to the Dan
ish farmer. 1t must be remembered
that in Denmark a farm is consid-
cred as having live stock and imple-
ments used in working the land in
separately attached to it, hence the
purchase price to be paid includes all
equipment necessary to the operation
of the farm and all mortgages are Sc
cured by a pledge of this personal
property as well as Of the real estate.
If the would-be buye has forty per
cent. of the purchase price he may
apply to a credit society for a long
time loan amounting to sixty per cent.
of the value of the farm and all equip
ment and stock upon it. The loan may
run from forty-five years to seventy
nine years. The borrower has his
prospective purchase surveyed and as
sessed. He makes out mortgage and
delivers it to the cooperative society.
This mortgage and hundreds of 9TH
ers like it are delivered to a trustee
with a trust deed which pledges them
as security for series of bonds. The
cooperative society guarantees the
bonds also.
1t is from the sale of these bonds
that the cooperative society obtains
It's funds. These cooperative credit
associations have in the beginning no
capital whatsoever Each is simply
an agency whose functions are to see
% that the real estate security Of
tered is assessed at its true value;
(2) that the title is clear; 90 that the
are properly executed;
"a that they are grouped, pledged
and deposited with the trustee;
(5) that the trustee issues bonds;
(6) that the land, buildings and equip
ment are properly cared for and their
value is not permitted to deteriorate;
CD that the payments of principal and
interest are promptly met.
Easy Repayment of Loans
The farmer pays from four to six
per cent. of the principal amount each
year. This is not wholly interest, how
ever, for it includes small install
ment of principal, for the mortgages
are all amortization mortgages. Pay
ment of this fixed sum annually or
semi-annually for the fixed period
therefor automatically discharges the
lebt. A small amount out of each
payment is also set aside for reserve
'or the cooperative society and for
IN expense account. 1t has been the
Universal experience, however, that
he expense runs very low.
Still Easier for the Farm Laborer.
There are other forms Of loans even
more advantageous to the borrower,
if he is one of the poorer
arm laborers. If such laborer seeks
o become a land owner on small
scale he may under certain conditions
ecure a loan for nine-tenths of the
value of the proposed purchase, being
equired to advance only one-tenth of
he purchase price in cash. The gov
rnment furnished the funds for these
cans. The conditions are (1) the Dor
over must have been engaged in az |
icultural labor for five years (women |
nay take advantage of this law as
veil as mem; (2) the land must not
xceed ten acres in extent nor $2,144
n value; (3) the borrower and pro-
pective purchaser must agree to crop
he farm in certain manner, dividing
! up into five or seven fields and fol-
owing a certain rotation of crops, thus
assuring continued productiveness and
reventing deterioration of soil fer
Ility. Under these mortgages the
orrower pays three per cent interest
18th no installments upon the princi-
al for the first five years. Then he
avs, in addition to the interest one
er cent. upon two-fifths of the loan as
n installment upon principal, doing
ais until the two-fifths of the loan is
ntirely discharged Thereafter he
avs an annual installment of one per
emit. upon the three-ffths remaining
{ the principal, this being in addi-
on. to his three per cent. interest
5 before. The bonds may be issued
pom unstamped paper and are free
ON tax.
Does the Danish farmer take advan-
90 ~ thoco onporfunitjea7 Are the |