The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1914-12-13
old system will be unable to borrow

old system will be unable TO borrow
now.
individual borrowers have no direct
relations with the federal reserve
banks. Loans to them will be made by
: the old banks on the old terms. Col
lateral that was not sufficient before
will not be sufficient now. Names that
the cashier rejected before there were
any federal reserve banks, will still be
rejected.
"The president said; Credit is at
the disposal of every man who can
\ show energy and assets" He should
have added character; and he would
then have correctly defined the con
dtion under which credit has always
been available under ordinary circum-
stances. Exactly the same bank Of
ficers who judged whether the assets,
! character and energy were sufficient
before, will judge of them now, and
they will form their judgment in the
same way.
an ordinary times your credit at
the bank will not be good for a cent
more than IL was before. The new sys-
TEN provides highly valuable means
for dealing with abnormal or extraor.
dinary conditions.
"Why it should be said to create
democracy of credit we do not under.
stand"
He recommends CO. operative credit
associations financed by private
funds. That's a very pretty theory.
If Ardmore people, coupled with the
wellto-d do farmers and merchants,
throughout the county, would organ
ize an association of this kind, place
their money into it, loan it at Il rate
that would protect the fund from loss
but bring no dividends to stockhold-
ers, these funds, if loaned by the
right party, would do much toward
putting live stock on the farms, and
might enable n few persons to buy
farms. That would be true in this
county and in every other county of
the agricultural sections. That theory
Is pretty, but it is not practical In
the first place, funds sufficient only
TO help a few could be raised, men
would not let their money stand
there for long periods without col
lecting dividends. When dividends
aDe paid the association could not
loan money cheaper than the banks
loan now, there would be a lack of
business system that would sooner
or later result in failure. These sys- !
tens in the European countries,-a
least some of them-failed, and ruin !
ed the farmers who were cooper
ating with them. There are very few
men who can loan money, and there |
are still fewer men who can loan
money of an association and get out
whole. Credit associations are I'M |
practical, because they cannot be !
be made permanent
The secretary urges the organlza-
ton of the land mortgage banks.
These banks are organized as other
banks are organized, by selling stock
to individuals. who want to make a
profit on the investment. A build
ing must be equipped, clerks employ
ed. bank officers must be paid The
same expense attached to one of the
banks now in operation would have
to be borne by the land mortgage
bank. If the land mortgage bank
can loan cheap money. the banks now
can loan cheap money Ihe
plan provides for longer time farm
loans. but that has little advantages
over the present system, because
farm loans can be renewed at this
Tine. The borrowers share in the
but the borrowers pay the
profits. and if there is q profit made
A higher rate of interest must be
paid and we fail 20 see how the land
mortgage bank can make finances
Easier for the farmer
Again the secretary says the Amer
can farmer does not need help be
cause he is sturdy, self-reliant, and
What class of farmers
IS he speaking of, the ten per cent
who own their farms. the ten per
cent who have mortgaged farms, or
the eighty per cent who have no land.
who move from place to place, who
cannot have live stock around them,
because they have no grass and no
Ieedstuff The farmer has had bou-
luets thrown AZ him all his life, but
what he needs is something better.
This government will never rise to