Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1914-05-01
Coo Operative Farm
Products Marketing
How II Is Done in Europe and M1y Be Done
i'm America to the Profit of Both
Farmer and Consumer
WILL THE BANKERS REFORM?
BY MATTHEW S. DuDaEoN

an agency whose functions are to sec
(1) that the real estate security Of
fered is assessed at it's true value;
(2) that the title is clear; (3) that the
mortgages are properly executed;
(4) that they are grouped, pledged
and deposited with the trustee;
90 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;
ca 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 a small install
ment of principal, for the mortgages
are all amortization mortgages. Pay
ment of this fixed sum anl.ually or
semi-annually for the fixed period
therefor automatically discharges the
debt. A small amount out of each
payment is also set aside for reserve
for the cooperative society and for
an expense account. It has been the
universal experience, however, that
the expense runs very low.
Still Easier for the Farm Laborer.
There are other forms of loans even
more advantageous to the borrower,
particularly if he is one of the poorer
| farm laborers. If such a laborer seeks
| to become a land owner on small
| scale he may under certain conditions
| secure loan for nine-tenths of the
value of the proposed purchase, being
required to advance only one-tenth of
| the purchase price in cash. The gov
ernment furnished the funds for these
loans. The conditions are Q) the bor-
rover must have been engaged in ag-
| ricultural labor for five years (wolnen
may take advantage of this law as
we'll as men): (2) the land must not
exceed ten acres in extent nor $2,144
| in value; (3) the borrower and pro-
| spective purchaser must agree to crop
the farm in certain manner, dividing
| it up into five Or seven fields and fol-
lowing a certain rotation of crops, thus
insuring continued productiveness and
preventing deterioration of soil fer
| tility. Under these mortgages the
borrower pays three per cent. interest
with no installments upon the princi-
pal for the first five years. Then he
pays, in addition to the interest one
/ per cent upon two-fifths of the loan as
an installment upon principal, doing
this until the two-ffths of the loan is
entirely discharged Thereafter he
pays an annual installment of one per
cent. upon the three-ffths remaining
of the principal, this being in addi
tion to his three per cent. interest
as before. The bonds may be issued
upon unstamped paper and are free
from tax
Does the Danish farmer take advan
tage of these opportunities? Are the
tenants becoming land owners? The
facts are these: Denmark has 2,600,00(
population somewhat less than thai
of Chicago. 1t has about 100000 fami
lies, including those in cities and vii
lagos as well as those in the rural re
gions. These cooperative credit soci
cites have membership of ovel
100000; that is to say, two out ot
every five families in the entire coun
try are represented in them. Largely
as result of this credit system ninety
per cent. of the farmers of DenmarE
own their own land
How Character Is Capitalized.
Obtaining loan on personal secur
ity has been euphoniously termed
"capitalizing character" 1t is not al
inept phrase since any farmer who hal
good character, who is sober, hon
est, Industrious, intelligent, productive
worker, has a capital that is consid
cred proper basis for credit and ht
can in fact capitalize his character
His character is in very truth under
these conditions his capital. Here j:
the way it is done here in Denmark
By the law enacted in 1898 the gov
ernment is authorized to turn over tt
the credit association $1,250,000, fol
which the associations account to the
government at the rate of three PEI
cent per annum. This sum is place.
at the disposal of the farmers credi
association in order that these asso
Citations may be ready to give small
loans to their members. When an.
farmer finds it urgently necessary tt
secure loan in order to meet ex
penses such as the payment of wages
the price of better seeds, or of artifi
cial manures, or of feed for cattle, h'
makes application to one of these as
J sociations. In determining the amour
it is the theory that the earning ca
, pacity of the borrower should be takel
into account. This is thought to b.
best indicated by the number of dair.
, COWS which he owns A member ma.