American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1914-04-09

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row money advantageously and eco
nomically is an important question.
1t may not be so important as good
marketing but 1t is important enough.
His loan should be on terms which
meet his occupation and his financial
resources. II he cannot get these
terms from his banker he will
naturally try to get them elsewhere.
The question is will the banker force
him to seek loans elsewhere. oil will
he meet the needs Of the farmer
There is little doubt that the banker
could give longer time on safe per
sonal paper. There is little doubt
that he could arrange for long time
real estate mortgages. When a farmer
borrows to buy a farm and gives a
mortgage for the loan there is no rea-
son why it should not be a long time
amortization mortgage permitting re-
payment in annual or semi-annual
payments extending over ten, twelve
or twenty years
Gilt Edge Security.
A good first mortgage on real estate
running for a considerable period of
time is recognized the world over as
a gilt edged loan. Financiers are &C
customed t advise It as the safest in
vestment for trustees. widows and
others who are not able to pass upon
the character of miscellaneous invest
ments.
The president of one of the great
life insurance companies makes the
statement that his company in its his
tory OF ~forty-six years has loaned
$685. ,549.44 to 1902 farmers, Sc
cured by mortgage on 1892 1858 acres,
the average loan being s1,7S2. The
net loss after paying all costs, fees.
assessments and penalty interest
rates was ourteen-hundredths OF one
per cent. This is substantially the
history Of all properly organized farm
land mortgage business. Some $780,
100000 in farm mortgages are carried
by u life insurance cOmpanies-an
amount equal TO IS per cent of the
total farm mortgages shown by the
census.
If a farm loan for three years is a
good loan. one for ten or fifteen or
twenty years is good. too. but no
American bank makes these long
loans. Why? We have never been
able to get any adequate answer to
this question. The general response
is an unsatisfactory one. IT isn't good
banking to make such long farm
loans" which is another way OF say
ing what we have said before. that
the city banker will not meet the
needs Of the farmer borrower.
There seems 10 be therefore no rea.
son why this fact that a long time
farm loan is q gilt edged loan should
not be taken into account in fxing the
interest. II is not possible that the
interest on these loans should be near
the rate which is received upon bonds
either municipal or industrial. The
city banker will investigate fully the
integrity and earning capacity o
every factory that wants 8 loan. L:
there any reason why the American
banker should not put himself in s
position 20 investigate the honesty ans
earning capacity OF the farmer who
needs money. thus permitting him tC
capitalize his character as 90 banker:
abroad? On the whole after lookin.
over the situation at home and abroat
it is not surprising that the farmel
sometimes suggests that bankers
might well study their own activities
rather than TO be butting in upon th'
farmers business
over here in Germany the banker.
were formerly as slow as those o
\ America are now TO meet this demand
for rural credit. So co-operativ,
credit came and il came to stay. i
does the work and it does il we'll
The question that is up in Ameriei
is simply a question as TO whether o.
not the American banker is going L
insist that the American farmer solv,
his own difficulties or whether be
the banker is going to solve it for hin
and be his financial hacker.
Mortgage Loans In Germany.
A cooperative loan on long mort
cages is no new experiment On
hundred and forty years ago tn,
Landschaftsn vare organized In Prus
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