The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1914-10-28
PRAC1|CABLEPL
OF RURAL CREDIT
For Kentucky Farmers Is
Now Provided
WITH THE new ASSOCIATION
Is OntgrOwth Of Agitation OF
the Subject By Three
Presidents.
GOV. McCREARY ITS PRESIDENT

Kentucky. in many ways a pio-
neer State, is again to the forefront;
this time in the movement to pro-
vide American farmers with cheaper
money for the operation of their
farms.
The Kentucky Rural Credit Asso-
citation, with Governor James b. Nc
Creary as its president, has just OPP
ened Offices in the Fayette National
Bank Building at Lexington, and in
vitations to farmers to become MEM
bers are now being mailed to all
sections of the State
The Kentucky Rural Credit ASSOC
citation is the first organization of its
kind in the United States. though
the plan upon which it is founded
has been in successful operation in
Europe for l47 years.
The Kentucky Rural Credit Assoc
citation is the outgrowth of agitation
of the subject by three Presidents
Roosevelt, Taft and Wilson-and of
the Investigations made by United
States Commissioners who were sent
to Europe to study the question,
and by the magazines and newspa-
pers of this country.
This agitation has illuminated the
needs of cheap money on long terms
to the farmers of the United States;
and the farmers are aroused to the
importance of financing their opera
lions on a just basis, in competition
with commerce and industry.
The plan of the Kentucky Rural
Credit Association is cooperative
and, under it, money borrowed on
land becomes a permanent invest
ment. Its plan is the amortization
plan, which lessons the burden of
the debtor and increases the secur-
ity of the loan.
Amortization is simply method
OF paying off the loan by returning
~ ilttit VI tht capital tdIu year q.
These payments are called annuities
and are composed of the interest and
contributions to the sinking fund
and cost of conducting the bust
ness.
For instance, if farmer borrows
from the Kentucky Rural Credit AS
ISOLATION (of which he must be Il
member before ne can borrow say
the sum of 81. 200 for IA period of 90
years. he will pay annually $50. and
at the end of the 90 years ne viii
owe nothing. He has. however, the
privilege of discharging his entire
obligation at any time after five
years. If he should so desire.
Under the present system of farm
loans the farmer often pays far in
excess of SH per cent; in some in
stances as high as 25 per cent, in
terest. commissions, recording fees,
etc, and In the end he still owes the
principal
The plan of the Kentucky Rural
Credit Association. while CAeapening
the cost of loans to the farmer and
tightening his burden. will, at the
same time, have a tendency to the
general improvement of farm lands.
farm dwellings and farm equipment
in Kentucky, inasmuch as money for
operations on a profit producing
scale will at all times be accessible
and obtainable.
That Governor McCreary is the
first officer of the first organization
in the United States to adopt the
suggestions of three Presidents of
the United States for rural credit. is
an achievement of which the Gov
ernor may we'll be proud and upon
which Kentuckians generally are to
be congratulated.
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