The Celina Democrat. (Celina, O. [Ohio]) 1895-1921, 1914-05-01

thus obtain a loan 20 about SIS per
head OF cattle fed and milked on the
place. The loans must be repaid In
from one to nine months. Interest
must not, according to the original law
exceed 4ls per cent per annum 10
the borrower.
Danish Bankers Have Reformed.
The fact that there are In Denmark
many banks which are organized for
! the sole purpose OF meeting the needs
Of the farmers has awakened the Dan
| ish banker to the fact that the rural
credit is a big business which he can
not aflord to ignore. Compared with
the American banker the Danish
banker most decidedly has reformed.
He does meet the needs CT the farmer
In manner which would surprise
Americans. This is particularly true
of the method in which he assists in
financing cooperative associations.
When the big Trfolium dairy associa'
ton was formed, for example, II was
done in this way: One hundred farm
ers, most OF them owners OF large
farms, formed an organization for the
manufacture OF dairy products and for
the further purpose of supplying milk
to the city OF Copenhagen. These one
hundred farmers we're the owners OF
something like 10000 cows. While
they individually had property, real
and personal, they had no money
which they wished to invest In CO.
operative organization, They there
fore sent their leaders to the bank
to borrow the money. They simply
asked the bank for loan of $l25,0OO
on the note signed by these leaders,
The bank did not require the other
members Of the association to sign
the note, although by the terms of the
agreement into which all had entered
in the formation OF the cooperative
association all we're liable, jointly and
severally for the debt contracted at
the bank. As a matter of course the
bank made the loan to these farmers
at low rate of interest.
A most interesting feature Of this
transaction is the method OF repay
ment. II was agreed that the loan
should extend over a period Of twenty
years with the privilege on the part
of the association to repay out of its |
profit each year a sufficient sum so |
that at the end Of the twenty years
the debt should be discharged. At |
this time the association has been run |
ming for twelve years and has been |
more than able to keep up its amorti- |
zation payments. At the end of eight |
years more the debt with the bank |
will be discharged. AT FredeTicks' |
sund, out some little distance from
Copenhagen, there is a cooperative
egg association which is composed of
10000 farmers. These 10000 farmers
had no capital which they wished to
invest in an egg-packing and shipping
organization. Their leaders went TO
the bankers as did the leaders of the
Trifoliun. dairy association and made
similar loan except that in the case
of the 10000 farmers who wished to
start an egg-packing establishment the
period of repayment was ovef a period
of ten years rather than twenty. This
seems to be quite an ordinary prac.
tice.
1t is of course evident that the bank
ers consider these associations as
founded on sound financial principles.
1t also is evidence, however that the
bankers of Denmark have seen the
necessity of getting out of the ordi
nary rut of commercial loans and are
a special contract and a
special loan on special terms for the
farmers and for the farmers co-opera'
tive associations.
Can Be Adapted to American Needs.
Now the details of operation OF
these Danish cooperative societies
are unimportant The general purpose
and results are most important. Ii
you cannot remember all the facts
as to methods this much may be eas.
lily remembered: Any Danish farmer
or farm laborer who is honest and in.
can buy his farm and pay
for it out of his earnings, taking al
the time he needs. He need not save
up to exceed one-tenth of the price OF
the farm and quipments IL he wishes
to buy small farm or two-lifths il
case of the purchase Of a larger farm
He can borrow money at a low rate 0
interest for the purchase of seeds, i'm
plements, fertilizers and live stock
American bankers cannot be asked |
to duplicate all features of a credit
oan system from abroad. Interest
rates are different. The American
farmer may not want forty-fve or
seventy-nine year loan. Other terms
may vary, but there are two things
he farmer in the United States wants
and will havs: First, an opportunity
% borrow small ahiounts on longer
line than ninety days; and, second
an opportunity to raise money to pur
chase farm on a mortgage running
onger than three or five years and one
amortization features. How
S the farmer going to secure these op-
1t is up to the banker.
Can Banks Supply Rural Credlt7
l have said it is up to the banker
o supply the American farmer with
oans similar to those supplied to the
European farmer. But there are those
who say that the joint stock bank can
lever meet the farmers needs as do
credit societies and that
,o-onorofiva pradif will onrna IN anita