The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1914-06-22

some as 10 why there IL such a prob
lem before the American people. The
answer 10 such a question Is found in
tne tact that the present banking
system developed almost entirely m
answer 70 the needs Of the couafner-
eial world. and. for that reason. does
Dot give adequate or approprlate
service 20 the borrowing farmers. In
the frst place. the short loans of
our banks are generaIiy given Cor
thlrty. SIXTY or ninety DAYS because,
the business man has found that
these periods OF time very well suit
the needs OF his business. The farm
ers need an entirely different period
TOT the short-time loans. For exam.
pie. IL farmer borrowes money 10
buy some pigs he does not wish the
note 20 become due until these niEs
are grown up and fattened for the
market; II be borroWs money 20 put
OUT large crop. he Is not In posi-
tlon 70 pay the loan ustii the crop ia
marketed. These examples are sur.
ilclent TO show that the length OF
loans Tor farmers should be deter.
mined on basis entirely different
world
secondly. the present banking sys-
TEN mas no ample provision for max.
ing longtime loans TO farmers who
Nlsh To borrow money for buying
land or making extensive permanent
improvements. As will be shown
later. the European farm banks have
made scientific study OF this oues-
tion and have created banks that
thoroughly meet this need. A third
reason Why the commercial hanks
nave not properly served the farm.
ers OF the United States IL found in
me, me isct mat II Is very common for
mem 20 charge farmers a higher rate
OF interest than they charge what
they term their "gilt-edge" CONNER.
cial customers
Soaking the Farmer.
a few months ago a renrese,,a.
i've farmer OF West Virginia told the
writer how he had been paving mis-
local bank per cent interest for the
money loans which he had obtained
ior the purpose OF purchasing cattle
IN the spring market. and that n
bookkeeping friend OF his put him
VS. 10 the fact that merchants
could secure money at s per cent
After getting this Information the
farmer negotiated his loan through n
merchant and thus saved . per cent
Ihe bankers do not as a rule inten-
tionally mean TO carry on their busI.
ness without regard TO the needs and
convenience OF our farmers vet IL is
N-lHAN hAANu VI ALN civ banking
on which our farmers must deDend
is as little suited 20 the peculiar con.
ultlons In the country as a packard
automobile which skins about me
CITY streets with perfection Is 10 some
OF our crooked. muddy. steep country
roads in winter time.
Does some one say that the farmer
u Such small factor in the banking
world that IL will be necessarv ~
MN 10 accept whatever service the
commercial banks wish 10 meta or,
20 hlmF II any one here thinks that
the farm business Is not worth, ~
special consideration from The stand.
point or banking. let him bp Reminded
tnat tne farms OF the United States
are worth at least $40. 600 OOO O0O .
mat these farms produce about 80
oUV.OVO,OOO worth annually; that only
S5,loo,OOOO0 600 worth of this Droduct
is consumed on the farm, that ss 100 !.
oVV.OOO worth OF IL Is sold from tbe
farm. and that the consumer pays for
this six billions. $4,000. OOO. Here in
Mest virginia our farms are valued
a. azUs'Oep,OOO. with an annual pro
ducton estimated at sixty million doi
lars. With these figures before ms
can any one say that the farmer 10
ness Ousr
Now We are ready to ask the mes.
"s " nat type or banks will An
sWer the peculiar needs OF the farm.
ing classes? answer by saving
that We need two kinds Of rural
1anks namely. mortgage banks Tor
lohg time credit. and co-oDerativc
banks Tor short time credit. Let us
now consider briefly the types Of sucb
institutions which the Commission on
which | had the honor 70 serve ex-
amined
The Iandschaften Of e.rr,,nv
know there Is a strong feeling
among cur farmers against mort
cages. think all OF us as a rlle
would advise farmers 10 refrain from
horisaginE their farms unless the
money secured on such MORTGAGE
rs needed 10 save the home or 10 IN
vest IN very productive ENTERPRISE
IN spite OF our feeling about mort.
kaEes, the facts show that IL is com.
mon Tor our farmers 20 secure money
m THIS way. the last census 'reDorf
showing that out Of Sc 600 farms IN
West virginia. 1926 are mortgarcd
AS this method Of securing money IL
common and often desirable. the most
economic plan for controlling this
branch OF business should be devised
can give q clear idea OF how this
system works. and its many advant.
ages by using tho exact words Of
one OF the officials Of Germany who
maze an address before our comm.
sion IN the city Of Halle Notice how
well he explains the advantage OF this
FNEfnm over tho ola r-~sk.I