The Meridian times. (Meridian, Idaho) 1909-1938, 1914-04-03

row money advantageously 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 it should not be long time
amortization mortgage permitting re-
payment in annual or semi-annual
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 is recognized the world over as
a gilt edged loan. Financiers are &C
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 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 IL. 1922 acres,
the average loan being s1,7S2. The
net loss after paying all costs. fees
assessments and penalty interest
rates was fourteen-hundredths of one
per cent This is substantially the
history of all properly organized farm
land mortgage business. Some $500,
100000 in farm mortgages are carried
by our life insurance companies-ar
amount equal to S5 per cent. of the
total farm mortgages shown by tbs
census.
If farm loan for three years is {
good loan, one for ten or fifteen Of
twenty years is good. too. but nj
American bank makes these Ions
loans. Why? We have never beef
able to get any adequate answer t
this question. The general respons'
is an unsatisfactory one. 1T isn't goo
banking to make such long farm
loans" which is another way of say
ing what we have said before. tina
the city banker will not meet tn
needs of the farmer borrower.
There seems to be therefore no res
son why this fact that a long tim
J farm loan is a gilt edged loan shout
, not be taken into account in fixing tn
interest. It is not possible that tn
, interest on these loans should be nea
the rate which is received upon bond:
, either municipal or industrial. TIL
city banker will investigate fully tn
integrity and earning capacity {
every factory that wants a loan.
there any reason why the America
banker should not put himself in
! position to investigate the honesty an
caIuiuS CdpdSlbg Ot Iue tdihCA "
: needs money, thus permitting him I
capitalize his character as do banker
/ abroad? On the whole after lookin
: over the situation at home and abroa
: it is not surprising that the farme
, sometimes suggests that banker
!. might well study their own activitie
! rather than to be butting in upon Ii
I farmers business.
I Over kere In Germany the banker
s were formerly as slow as those (
( America are now to meet this deman
v for rural credit. So co-operatiE
n credit came and il came to stay.
$ does the work and it does it we
e The question that is up in AmeriC
, is simply a question as to whether I
t not the American banker is going
e insist that the American farmer sol
s his own difficulties or whether
II the banker is going to solve it for hi
g and be his financial hacker.
# Mortgage Loans in Germany.
e A cooperative loan on long mo
IS cages is no new experiment, o
IS hundred and forty years ago (
Landschaften were organized in Pr