The Harrison times., 1914-03-28

How the man on the farm can Dor
row money advantageously and eco
nomlcally is an important question
1t may not be 30 important as good
marketing but It Is important enough
His loan should be on terms which
meet his occupation and his financial
resources. II 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 VIII
he meet the needs OF the farmer
There ia little doubt that the banker
could give longer time on safe per
sonal paper, There ls little doubt
that he could arrange for long time
real estate mortgages. When farmer
borrows to buy a farm and gives a
mortgage for the loan there Is no rea'
son why II should not be long time
amortization mortgage permitting re-
payment In annual or seml.annual
payments extending over ten, twelve
or twenty years.
Gilt Edge Security,
A good first mortgage on real estate
running for o considerable period Of
time ls recognized the world over rs
q gilt edged loan Flnanciers arc ao'
customod TO advise II as the safest In
yostmont for trustees, widows and
others who are not able TO pass upon
the character OF miscellaneous invest
mentB,
Tho president OF one OF the great
life insurance companies makes the
statement that his company In its his
tory Of forty.slx years has loaned
$l33,S3S, ,540,i4 to 75,102 farmers, Sc.
cured by mortgage on t1,462,363 acres,
the average loan being $l,7S2, The
net loss after paying all costs, fees,
assessments and penalty interest
rates wuB fourtoen'hundredthe Of one
per cent, This Ia substantially the
history OF all properly organized farm
land mortgage business Some $780,
100000 In farm mortgages are carried
by our life insurance companios-an
amount equal TO 80 por cent OF tho
total farm mortgages shown by tho
census,
II farm loan for three years IL q
good loan, ono for ten or ffteon or
twenty years In good, too, but no
American bank makos these long
loans Why2 We have never boon
able TO got any adequate answer to
this question, The general response
iB an unsatisfactory one, 1T isn't good
banking to mako such long farm
loans" which In 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 10 be therefore no rea'
son why this fact that u long time
farm loan In n gilt edged loan should
not be taken into account In fixing the
interest, II Ia not possible that the
interest on these loans should be near
The rate which In received upon bonds,
either municipal or industrial, The
city banker will investigate fully the
integrity and earning capacity OF
every factory that wants u loan, IL
there any reason why tho American
banker should not put himself IN q
position TO investigate the honesty and
earning capacity OF tho farmer who
needs money, thus permitting him to
capitalize his character ua do bankers
abroad9 On the whole after looking
over the situation at home and abroad
II Ia not surprising that the farmer
sometimes suggests that bankers
might we'll study their own activities
rathor than 10 bo buttlng In upon the
farmers business
over here In Germany the bankers
were formerly as slow aB those OF
America are now TO meet this demand
for rural credit So cooperative
credit came and Il came TO stay II
does the work and II does II we'll
The question that IL up IN America
Ia simply q question aa 20 whether or
not the American banker ID going TO
insist that the American farmer solve
his own difficulties or whether he
the banker In going 10 solve II for him
and bo his financial backer
Mortgage Loans In Germany.
A cooperative loan on long mort
cages Ia no new experiment one
hundred and forty years ago the
Landaohaiton were organized In Prus'