Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1914-04-03

that he could arrange for long time
real estate mortgages When a farmer
borrows to buy d farm and gives a
mortgage for the loan there Is no rea,
son why Il should not be a long time
amortization mortgage permitting re
payment In annual or semiannual
payments extending over ten. twelve
or twenty years.
cllt Edge Security.
A good first mortgage on real estate
running for a considerable period Of
time IL recognized the world over az
gilt edged loan. Financlers are Ao
customed TO advise II 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 tho great
| life insurance companies makes the
statement that his company In It's his
\ tory of forty.slx years has loaned
/ St33S3s,5 49.44 10 5000 farmers. SO.
cured by mortgage on II 49, 1868 acres,
the average loan being $l,7s2. Tho
net loss after paying all costs. fees.
AH@tHNAl&lAAR anu pFAaAhF AAtMAhNN
rates was rteen-hundredths OF one
per cent This Is substantially the
history OF all properly organized farn
land mortgage business Some 5000.
100000 In farm mortgages are carried
by our life insurance companiea--an
amount equal 10 30 per cent. OF the
total farm mortgages shown by tho
census.
II farm loan for three years is a
good loan, one for ten or fifteen or
twenty years lie good. too. but no
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 il 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 to be therefore no rea
son why this fact that a long time
farm loan is gilt edged loan should
not be taken into account in fixing tho
interest. II IL not possible that the
AAANAEAA QA AAAEhG AbNilM B& hEMA
The rate which is received upon bonds
/ either municipal or Industrial. The
/ city banker win investigate fully the
J integrity and earning capacity oil
; every factory that wants a loan. II
there any reason why the American
J banker should not put himself In 9
! position to investigate the honesty and
} earning capacity Of tho farmer who
D needs money. thus permitting him K
capitalize his character as do bankers
! abroad? On the whole after lookinl
. over the situation at home and abroad
D It IL not surprising that the farmer
sometimes suggests that banker
, might well study their own actisitiei
rather than to be buttIng In upon th'
, farmers business
: No City Market for Them.
r But suppose q country banker II
+ Rusk county, Wisconsin, does LOAF
= $50. 900 to fifty farmers on fifty Of thu
Y finest farms. taking back nifty mort
e gages which are gilt edged In ever
0 sense. He wishes 10 make more loan
; and there In 10 bis community q de
y mand for more money. Can he sci
1 or otherwise raise money on fhesi
y fifty mortgages from the city bank
: in Madison, Milwaukee or Chicago
n Not At all. The city banker will coz
= eede that they have probable valu
q but the city banks have no system
/ for handling these rural mortgages
4 The country banker hnds that II !
. easy TO send the farmers money fron
i the farm into the city. but mighty dli
y ncuit to gst any city money out int
n the country for the farmer City %
3 curities. Be they based on blue SIX
q or financial cats and dogs. have 4
D. the city value. much or little ~ IN
I case may be. but still definite know
. value. But good gilt-edged farm NOR
8 cages are financial 0Hfcasts. They ar
= practically outlaws.
9 After all we repeat the thing mos
y needed Is an adjustment Of bankin
2 methods to rural business nsedi
% Bankers could solve the farm cred
. problem II they would. But 80 lon
as they prefer TO leave the study I
r their own work (which the fafme
D thinks they do not HBdefstana1 an
D insist on telling the farmer his bus
ID ness (which the farmer knows rhe
i do not uuderstandy, there j. little hor
n for them. They ara driving n
Al farmer 70 hts ean solution OF hla ~
e difficulties One state IeEialatS.'
N made up largely Of farmers has Z
4. tackled this problem and oYer the pr
e test 81 the bank members has MAG
N some progress. More alll be "a
r about this later
ef over here IN Germany the banks
n were formerly a. al0w - those
bt America are nos 70 meet thia aamat