Deming graphic. (Deming, N.M.) 1903-1948, 1914-03-13


and incxcusable, being
usually due TO the slackness or the
want Of skill in the farmer.
I think I have sufficiently outlined
the general conditions so far as the
farmer himself is concerned. When
he becomes borrower, conditions
harder than those imposed by nature
him. Il is perfectly safe
to say than the average rate Of in
terest paid by the farmer on short
time loans exceeds twelve per cent,
and he has great difficulty in getting
money sufficient for his land. This
is a borrowing state. Our banks are
SINAI! and their resources are limited.
Their biggest depositors today may
tomorrow become their biggest Dor
rowers. II is necessary to carry more
than the legal reserve in order to
meet extraordinary demands. As II
rule, very considerable deposits are
carried in Chicago and New York
banks, out Of all proportion to their
deposits. Real estate loans to farm
ers some times extend over period
Of three years, but are, as rule.
made for shorter term. There are
n few five-year loans. These loans
usually command ten per cent. The
Union Central Life Insurance Com
pany, Of Cincinnati, and the Pacific
Mutual Life Isurance Company, of
Los Angeles, have within the last
few years been lending money in the
state. They have usually made their
loans at seven per cent for from
three to five year terms and have, rs
u rule, required the borrower to take
out life insurance with them, the
premium on which approximately
equals the interest paid on the loan.
Disregarding the value of the in
surance to the borrower, his total
cost, including the expense Of the
loan, as well as the interest and the
cost of the insurance, runs ten to
fifteen per cent. In some instances
the insurance is assigned rs addi-
tional collateral. | have heard of
some money loaned in the state at
seven per cent for from three to five
years, while the paper is discounted
ut the rate Of three per cent per an
mum for the full term of the loan.
On a five year loan, the discount
would be fifteen cents on the dollar,
and the actual interest paid would be
over eleven per cent. This conditions
usually are found in the development
of new farms and the security Of
fered is frequently corn or milo
maize lands, which have net earn
ing power Of from $4,000 to $4,000
per acre, or alfalfa land, which will
earn from $4,000 to 10000 per acre.
The character Of the security is first
class. Its earning power per acre is
in excess Of the earning power Of
farm lands in eastern and central
states, but the scarcity Of money in
this section Of the country, the lack
of a knowledge OF the resources of
New Mexico on the part Of those in
the East who have money to loan,
make it very difficult to procure
money OH some very valuable farms.
] do not know Of any other section
of the country where farmers can
prosper and pay from ten to four
teen per cent on the money they bor-
row. No other section more sorely
needs the development Of some system
for the presentation Of farm loans in
the money market, accompanied by
dependable information as to the
character of security, than does this
section.
The markets Of the Southwest, in
Guiding New Mexico, are exceedingly
good. The stockman, the miner, the
railroaders, as well as the urban
population, produce nothing to eat
The cattle from our rangers are, as a
rule, sold as stockers and feeders on
the eastern market, few are killed
for home consumption during pos
sibly five months Of the year. We
import into our state, dairy products,
including butter, milk, cheese, eggs
and poultry, equaling in value the
total products of our sheep. Oul
people are fed very largely from tin
cans on the products Of Colorado
Kansas and California and on the
milk Of Wisconsin, Illinois and Iowa
Yet no other section Of the country is
better adapted for dairying, as far as
natural conditions are concerned
than New Mexico. Our markets ar
supplied from states to the east ant
west Of us. In a large measure, tn
freight rates, which are high, operat
, as a protective tariff, and OF yer.
) great benefit to the producer With
r our state. Marketing conditions
Y however, are difficult. II is easy TO
Q the local merchant, wherever he ma