The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-03-17
NEWS OF THE NORTHWEST

Estate III the union. (Crop Reporter.
volume Is, No. ~
Thfrd--A majority per cent Of the
excessive rate passes out of the state
= without passing through the channels
Of trade,
F~ourth-High rates Of interest to
merchants make high prices of goods
which drive people 10 the catalogue
houses, thus we are destroying our
own prosperity.
Fifth-Pause to realize the amount
Of farm loans! For the last six years
the interest rate on farm loans in this
part of the state, has been from 8 to
IL per cent, averaging above 10 per
cent. A loan Of s $4,000 at 10 per cent
for five years time will require S 5000 to
satisfy at maturity. On the same prin-
cipal at ~ per cent for seven years,
the amount will DO $3.50. Note the
saving on the above at 6 per cent. On
the five year loan $400, and on the sew
Ell year 0 $40.
SiXth-Two per cent on 81 will jpst
pay for a postage stamp. But observe
the ~'bignesS' when applied to larger
sums. Ths rule Of real estate agents
is to charge from 2 to 8 per cent COM
mission. On a loan of $4,000 at 2 per
cent for one year it is $40 and for Eve
years 5000. Such commissions amount
to more than $4,000, 900 per annum in
this state.
Seventh-Because he does not CON-
troll his selling price on wheat, barley,
flax, etc, the farmer cannot shift the
burden Of high interest rates onto
others, like those who do control their
selling prices. If the farmers. in an
effort to raise their selling prices to
meet the high cost Of buying, should
appeal to the supreme court Uike the
railroads and others doing an inter-
state b~usiness) upon the grounds that
the buyers Of wheat, barley, flax, ETC.,
were paying such a low price that it
is "conf1scating" to the farmer prog
ress, the courts would evidently reply:
I'VE do not question the purchasers
right to pay as much or as little as he
pleases. What we consider is the al
loWance or h restraint to the seller.
And o farmers have the right and
liberty, unrestrained, to charge for
your grain Just as much or as little
as you please" Then If the farmers,
finding themselves unable to get re-
dress from low prices paid by the pur-
chasers OF farm products, should next
try to save against or reduce the high
charges Of interest rates or to restrain
that easy money" harvest of the real
estate agents, again should appeal to
the supreme court on the grounds that
the charges exceeded the services
rendered. the courts would evidently
reply: THAT Is a contract and we
cannot allow the obligation Of a con-
tract to be impaired"
| make this reference to the court
matter simply to show that farmers
are helpless against interest charges,
and further to show the imperative
necessity of the states regulation.
While Others "kick' at the high eos
Of living, the farmers have a kick COM
ing against both ends"-the high price
IN h1,Nrin q thu low r.s1 IN coI:-1r
Guarantees in Vogue.
TIE ST ong arm of the state reaches
out (3ec;;rn l. chapter us, session
laws If 1919 and (a) ails in getting
settlers .farmers) to the state ard
vides through the county commission
ers, seed grain, thus guaranteeing that
a crop may be planted and then (c)
provides a hail insurance thus guaran-
teeing that the value If not the real
crop, shall be harvested and then (d)
providing terminal elevators in order
that the farmer nay receive a better
price for his grain And, also, (e) has
protected all cities in this state
against being charged more than 7 per
cent interest for making all kinds of
improvements (section S. chapter "a,
s. L. of 1879 and (f) prepared to
guarantee the honesty of all public
officials (%chapter 1874, session laws Of
1879 and (g) protects the banks
against being charged more than 4
per cent interest for deposited school
funds section 926, chapter 266, session |
laws Of 1910. And as odd as it may |
sound an example Of this protection
happened in Berthoid. The bank |
holding the school funds bid ~. per
while he other bank bid only 4 |
cent and the money was taken |
of the bank bidding more than 4 per |
cent n deposited in the bank bid |
ding only 4 per cent. |
phe city being a corporation COM !
posed of an aggregation Of people, in
dustries, professions. trades, and
wealth certainly cannot be in a greater
need for the states protection against
high rates o Interest han the farmer
who operates his farm in an individual
manner. And as to the comparative
need Of protection for the bank and
the farmer against high rates of inter-
the reasons are too apparent to
require comment. + q
I don't believe that any fnancier will
lake issue with me when I say that
no bond of any city, public service
corporation, or railroad company
than a North Dakota farmers
oar guaranteed by the state.
When a banker Of his own accord, |
will reduce the rate Of interest against
our nature to take all we can get"
as has been done in the eastern half
of the state, they set an example of
highest degree Of patriotism. The
most enthusiastic supporter Of my
plan was a banker who
said Your plan put in practice at 6
per cent would be worth more to a
than the present plan at 10
per cent, because of the stability of
collateral. Then farm loan paper
could be rehypothecated on such a
value or basis that in the long
the earnings would be greater
and safer, and save much. worry to
the %endorser."
The interest rate in New York state
Ia less than 6 per cent on both Iong
and short loans, still Governor Glynn
Of that state pronounces it an "out-
on the farmers and is urging the
state legislature to make provisions
to save a few millions OF dollars to the
Why should our state having
the greatest per cent of alb industries |
in the state engaged in farming, use
less diligence in behalf of the farm
"..., 5tH %r ~ ~ T." \
~ Farmers Should Counsel.
That farmers may have the opportuni-
ty to express themselves on this and
other questions, ! suggest that they |
meet June q. (Date OF trustee cleo
in all the townships throughout
the state, pass resolutions and send
six or more delegates to a county mass
sag June 6, there to discuss