Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1914-07-17

row money adVantageOuBly 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 a
mortgage for the loan there Is no rea-
son why 1t should not be long time
amortization mortgage permitting re-
payment in annual or semfannual
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 Ia recognized the world over as
a gilt edged loan. Financiers are ac-
customed to advise 1t 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
$133,S3S,549.44 to 1902 farmers, Sc
cured by mortgage on II, 462,363 acres,
the average loan being $1,7S2. The
net loss after paying all costs, fees,
assessments and penalty interest
rates was OBSERVATION-DISCLOSURES 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
by our life insurance companies-an
amount equal to 80 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 OF
twenty years is good, too, but nc
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, 1T isn't good
banking to make such long farm
loans" which Is another way of say
ing what we have said before, thai
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 a 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 neal
the rate which is received upon bonds
either municipal or Industrial. The
city banker VIII investigate fully tn,
integrity and earning capacity o
every factory that wants loan. Il
there any reason why the American
banker should not put himself In {
position to investigate the honesty and
earning capacity of the farmer whS
needs money, thus permitting him Il
capitalize his character as do banker,
abroad? On the whole after lookin,
over the situation at home and abroad
1t is not surprising that the farmel
sometimes suggests that bankers
might well study their own activities
rather than to be butting In upon tn,
farmers business.
Over here in Germany the bankers
were formerly as slow as those o
America are now to meet this demans
for rural credit. So cooperative
credit came and 1t came to stay. I
does the work and it does It well
The question that is up In Americ,
Ia simply question as to whether o.
not the American banker is going I,
insist that the American farmer solv,
his own difficulties or whether he
the banker is going to solve it for hin
, and be his financial hacker.
Mortgage Loans In Germany.
J A cooperative loan on long mort
cages is no new experiment. On
hundred and forty years ago tn
IIAnAonhoft xva~o l.