The Richfield recorder. (Richfield, Idaho) 1909-1931, 1914-03-19
Cooperative
Continued from page -

WI n. MUTE Olleu IL 10 d CO-Op6Idt We
credit bank that loans to farmers.
But some bank stands ready to
meet the farmers needs everywhere,
except in the United States. In
America, as nowhere else, the banker
takes the terms calculated to accom-
modate the city merchant and finan-
ciers and infiicts them upon the pro-
testing farmer Sixty and ninety day
loans are just what are needed in the
city, but they are of no possible use to
the farmer A merchant or commits
sion man gets his returns promptly
and can meet ninety day paper at
maturity. But the farmer cannot buy
calves or pigs and fatten them, mar
ket them and get returns short of a
much longer period. The rural bor-
rover who invests the borrowed
money in seeds or fertilizers cannot
hope to realize upon his investment
short of six or eight months 1t is
not so much a question of interest
as of terms and methods. In many
localities interest rates are fair In
some places interest on farm loans is
too high. But it is true everywhere
in America that the bankers stub
bornly refuse to the farmer the sort
of loans which he needs. And the
banker who sits behind the cashiers
desk writing speeches about better
farming drops his facile pen long
enough to crowd down the throat of
some farmer patron who should have
an eight months loan, three months
loan, which is as apt to cripple as
To help him.
How the man on the farm can Dor
row money advantageously and eco
nomically is an important question
1t may not be so important as good
marketing but it is important enough.
His loan should be on terms which
meet his occupation and his financial
resources. If he cannot get these
terms from his banker he will
naturally try to get them elsewhere.
The question is will the banker force
him to seek loans elsewhere, or will
he meet the needs of the farmer.
There is little doubt that the banker
could give longer time on safe per-
sonal paper. There is little doubt
that he could arrange for long time
real estate mortgages. When farmer
borrows to buy farm and gives
mortgage for the loan there is no rea-
son why it should not be long time
amortization mortgage permitting re-
payment in annual or semi-annual
payments extending over ten, twelve
or twenty years.
Gilt Edge Security.
A good first mortgage on real estate
running for a considerable period of
time is recognized the world over as
a gilt edged loan. Financiers are ac-
customed to advise it as the safest In
vestment for trustees, widows and
others who are not able to pass upon
the character of miscellaneous invest
ments.
The president of one of the great
life insurance companies makes the
statement that his company in its his
tory of forty-six years has loaned
S133,83S, 1914 to 1902 farmers, Sc
cured by mortgage on 11,462,3 1863 acres,
the average loan being $1,7S2. The
net loss after paying all costs, fees,
assessments and penalty interest
rates was fourteen-hundredths of one
per cent. This is substantially the
history Of all properly organized farm
land mortgage business. Some $780,
100000 in farm mortgages are carried
20 inc no. q
amount equal to 35 per cent. of the
total farm mortgages shown by the
census.
If farm loan for three years is a
good loan, one for ten or fifteen or
twenty years is good, too but no
American bank makes these long
loans. Why? We have never been
able to get any adequate answer to
this question. The general response
is an unsatisfactory one, ut isn't good
banking to make such long farm
loans" which is another way of say
Ing what we have said before, that
the city banker will not meet the
needs of the farmer borrower,
There seems to be therefore no rea-
son why this fact that long time
farm loan is gilt edged loan should
not be taken into account in fixing the
interest. 1t is not possible that the
interest on these loans should be near
he rate which is received upon bonds,
either municipal or industrial. The
3jty banker will investigate fully the
integrity and earning capacity of
avery factory that wants loan Is
here any reason why the American
banker should not put himself in a
position to investigate the honesty and
earning capacity of the farmer who
leeds money, thus permitting him to
capitalize his character as do bankers
abroad? On the whole after looking
'yer the situation at home and abroad
t is not surprising that the farmer
suggests that bankers
night well study their own activities
ather than to be butting in upon the
business.
Over here in Germany the bankers
we're formerly as slow as those of
america are now to meet this demand
or rural credit So cooperative
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