The Washington herald., 1914-12-06

The recent three-day rural credit con-
ference held at the National Capital,
called by the executive council of the
progressive oranges, is a most encour-
aging sign of the hold that this great
subject is beginning to take on those
most vitality interested, viz: the Ameri-
can farmers. As long as better facilities
for farm credit were only occupying the
minds Of theorists and politicians, the
| achievement of the object aimed at was
problematical, but now that the great
farm organizations are beginning to con-
slider the subject seriously, success is
bound to come. The conference WAS at
tended by members OF the Farmers
Union, as we'll as by the grange. by edi-
4 tors of the great farm periodicals and
! by public and private men who have
studied the subject. The spirit display
cd was excellent and the general feeling
was that movement was being launch
cd which would insure the instruction
of the vast body OF American farmers in
the subject OF rural credit, so that they
themselves can solve the problem along
the best and sOundest lines.
Three Important Points.
In considering any system of rural
finance. there are three things which
should be constantly kept in mind.
These are:
l. To place agriculture on a more
thorough business basis
. To secure a system whereby land
mortgages and therefore, land itself, is
made more liquid.
3. To afford ample credit facilities to
those engaged in agricultural pursuits
land owners and tenants-so as to enable
them to make the business of agricul-
ture a profitable one.
1t is highly desirable to encourage the
ownership OF rural homes, but a rural
home which is not profitable to its owner
will not be held for any considerable
length of time. II is necessary. therefore,
to provide for a system of personal credit
to enable those owners OF rural homes.
as well as those tenants who cultivate
farms TO make them paying investments.
Those two CLASSES OF institutions should
have separate controls and be controlled
by borrowers rather than by lenders.
Need Business Training.
In America. the farmer for one reason
or another has generally not been much
of business man. II he has dairy
farm there are certain cows which he
knows are profitable without keeping any
books and others he knows he had better
get rid of as soon possible, but there
are many in the herd whose value must
be determined with more care. The eN-
perience OF other countries has shown
that where the farmers are taught by
actual experience 70 conserve their capt.
tai and credit they become more careful
in all matters pertaining to farming.
In other words, they become better rural
business men.
Secondly. the advantages Of making
land mortgages and land more liquid
are clear. At present il man has
money TO invest and considers lending t
out on mortgage he knows that his
money will BE- tied up for several years,
because the borrower will want assur-
rance that he will not be caught by hav-
ing his loan become due Unexpectedly, so
he makes the lender agree to let him have
the money for a period OF several years.
An investor, however. realizing that he
may want money for some purpose. and
considering whether he shall tie it up for
a fixed period or put it in something that
he can turn into cash at any time, would
be apt TO give preference to the latter.
unless he can get higher return on mis-
money. so the farmer In order to secure
the loan frequently has to bid high for it.
With a system in force where an inves
tor can get a good security based on
land and be able TO realize on il at the
same time, this handicap would be re-
moved.
Two Kinds of Finance.
Now as to the third point: A means
by which the American farmer may util-
izc his personal credit so as to render his
business more productive. In farming
as l have pointed above. two kinds uf
finance are required, viz. the means for
borrowing on the land the farmer owns
in order to make permanent improve
nents. and means for borrowing working
capital with which to buy seeds, fertiliz-
ers, machinery. work stock and improved
breeds of stock to which the farms prod
ucts arc fed. building of silos, draining
his sour lands. paying for labor. etc.
The money required to buy seeds and
fertilizers comes back to the farmer
after his crops are harvested and sold
that is. within a year and the money
invested, for instance, in the purchas Sc
of COWS and the raising of calves in two
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