The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-06-14
FARMERS CREO|T



the best that it is pos hle 70 have.
or course, fivo-year mortgages are
not quick assets in the sense that
thirty or sixty days commercial paper
ts National banks located in the
country towns will probably find II
TO their advantages to increase their
capital, so as to he in position to
take care of the farm mortgage bust
ness which Ia sure to he offered to
them. Apart from the new business
" hich the banks vii gain. the
simple fact that they arc in a posi-
tion 10 lend money on long terms Of
credit to farmers viii br~g them in
closer touch with the raHI population
and viii in that way en- a}e the bust
ness interests Of the vhaHs country to
become acquainted quickly with the
condition Of crops, pfosneetive sup
pTT0s NJ i've stock the probable con-
sumlng capacity If the 1aral popula-
ton. Country hanks will naturally
supply sUch Information - their cor
respondents in the reserve cities and
this viii pat the whole banking sys-
+ tenn OF the country In an even better
position than the Canadian banks now
enjoy through their branch bank sys-
/ tenn. The good results which will
come from such enlargement Of the
! field of banking In this country can
j lluFuiN De GSklfndteNs
Since national banks located out
, side Of the reserve city will be able
to assign or dispose If the mortgages
that 1t holds 10 investors looking for
such securities, the loans made by
national banks to farmers Will not
ia practice he restricted to the limit
Of twenty-five per cent of the capital
and surplus or onc-third Of the time
deposits of the bank, except rs to
p h.. M.
Wtll not pledge its own credit in as
signing or selling mortgage To an
investor beyond the ordinary pledge
~ good faith on IT'S own part, but
the fact that a mortgage has been
taken ny a national bank la n man
I ncr conforming with the provisions
nf the currency btu viii make such
security very attractive. This Will
he "A source of profit for the bank
u VIII provide ample funds for the
farmers and it VIII give investo rs an
t"peniBg fer the tt~~ of their capital
from which most % them are now de-
1 barred. A farmer might own the best
hundred acres in the State of Iowa
today and Vet he unable to borrow
I money on il eXcert from persons who
live within sight he farm. He could
not get money from an investor in
Chicago or New York by correspon-
fif'3Ntt bf+taftAaB }tf.tt fiRF bDtfnWaT OF
lender would know anything about
tho other, Hereafter such a farmer
Nlll be able 10 so 10 a national bank
I'm his vicinity aad arrange such a
! loan
Bankers are proverbiallv conserva-
tive, and many of them will probably
hesitate before engaging extensively
in the new business If lending money
on farm mortgages Now thar the
+ ..FaN ia,
share OF this desirable business they
should make the most of IT, This
clause in the currency bill has been
inserted in compliance with the
wishes OF the farmers of this coun-
try. and. II the banks do not see fit
to transact such business In a lib
eral way, the farmers will be dis
appointed and may seek to secure
further Legislation from congress that
/ might be unwclcome 10 the banking
community
The farmer has to sell what he pro-
| duCes in highly competitive markets
and he understands thoroughly how
the competition of the wheat growers
of Argentina. India and Russia at
-faets-the- price wheat In Chicago.
He also knows hat the most competi-
tive business In ala the world In trans
acted In the great money markets of
New p4H, ifhIidftf3 ana ok1iGT IlIidnCihi
centers. He has read about cheap
money, but he has never been able
to get any of IT, aud today he looks
forward with hope of relief through
the medium Of the national bank
which he has seen sever the business
community in his market town SO
efficiently in the past Banks have
done much to bring to bring the farm
or in touch with central commodity
,.7r afu r.sf4J lat, al. In has
always been sure Of n square deal in
selling staples. such as corn and cot
ton. The banks can now render him
a service quite ~ great by putting
him in close touch with the activities
OF the money market.