Pine Bluff daily graphic., 1915-04-08
IMPROVING THE FARMERS CREDIT
Methods by Which the Individual Can Productive Inpro
 Favorable Terms.

Washington, April 6.-Three plans have succeeded in improving their personal credit and securing loans at less than the prevailing rate of inter- est are outlined in new publication of the United States department of az riculture, farmers bulletin No. 654, 'How Farmers May Improve Their Personal Credit"
 The first of these plans has worked out in certain localities ill North Da- l1ota so we'll that the farmer has been able to borrow money on his personal note at s per cent at time when the usual rate in his vicinity varied from 10 to 12 per cent. To secure this re- duction in interest. the farmer agreed that the bankers should buy the dairy stock for which he wished the loan and sell it to him at actual cost The purchase in a number of cases was conducted with the advice of state or federal dairy specialists. The men who furnished the money were thus in a position to make certain that it was used for productive improvements which would enable the borrower to repay the loan. Under this plan, in fact, the farmer may be said to have borrowed the improvement itself in stead of the money to buy it with, for the disposition of the money was talk en out of his hands.
 Banks Aid Farmers.
 A plan of the same general char aeter was carried out a year or two ago in southern Idaho, but in this case three or four banks united in the purchase of carload of dairy stock. Tn another case in Nevada a lccal creamery supplied the money and held back part of the returns from milk and cream delivered by the borrowers. Altogether 491 COWS and heifers were distributed among S4 farmers, the aggregate amount of money represented by the loans be- ing S39,4S3 This is the simplest of the three methods. It consists essen tially in permitting the lender to say how the money that he loans shall be spent. Under such circumstances ne naturally feels more secure, and the rate of interest lessens with the risk.
 In regions where for various reas- ons this plan has not proved possible, another method is to have the farmers collectively assume certain gu.aran- tee for the notes given by individuals. In southern Montana, for example, 19 farmers organized an association and appointed trustees to represent it in negotiations with a local bank. The trustees were authorized to guaran tee a limited amount to the bank on the joint and several liability of the association members. With this ad- ditional security the bank agreed to advance $5,000 to the association at 8 per cent when tho general bank rate was 10 and 12- per cent. Two dele. gates from the association purchased with the money two carloads of helf- CTS which were distributed among the members, each animal being charged with proportionate share for all the incidental expenses connected with the transaction. Each purchaser pledg ed himself to care for and breed the cattle by methods approved by the trustees.
 The Wisconsin Plan.
 In the third plan the guarantee is furnished not by the farmers them- selves, but by an outside interest. As the plan was developed in Wisconsin and Minnesota, this outside interest consisted of local business men who were in their way as much concerned as the farmers with the general inl- provement of agricultural conditions in their regions. Under this plan the business men subscribed certain percentage of the funds loaned with the understanding that this was to constitute guarantee fund to protect the bankers Otherwise the plan was in it's essential principles like that adopted Ill Montana. @s None of these r>thods require more than a temporary saplzation. permanent cooperative credit as, sociation is. of cour SC. 8 different mat.