The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1915-07-22

of deposits at 3 or 40 and loaning al
an advance Of one per cent for invest.
ment purposes has proven highly sat
isfactory in New Zealand for many
years. New Zealand with less than
1,000, 900 population has over 10000
900 thus loaned out. If the interest is
paid IA days before due one-half of
one per cent is RENTED. They pay
AZ and loan for so. Prompt pay
ment 4h%. They say no losses, and a
net revenue for the last year for which
l have a report of $256,O0O.
West Australia
West Australia with less than half
a million population, is not an agricul-
tural province. In 1900 the total acre
age in crop was only 186, 200, and ap-
plications for land only 309, 900. In
1911 there was over 1000, 900 in crop
and applications for 1856, 900 acres, an
increase of an increase of six fold in
ten years. But we will quote from the
Premier Hon. John Scadden in an in
terview in Winnipeg a couple of years
ago.
I'VE realize that the farmer must,
Of necessity, compete with the world
In the sale of his produce, and we
therefore endeavor to do what we can
to enable him to carry on his business
under the most favorable conditions.
We have, for instance, a system of
state loans, by which our farmers may
borrow money at a low rate of interest.
Our policy is not to lend a lump sum
on the value of the land, but rather on
the improvements which the farmer
makes. When a farmer breaks OF
clears a piece of land, erects buildings
and makes other improvements, we
lend him the full value Of those i'm.
provements. We also lend money to
farmers for the purchase of stock and
machinery and for the purpose of pay
ing off other liabilities. These loans
are made at SO interest. Fol- the frs,
FIVE years the borrower pays the in
terest only and after that, by paying
So, he not only pays the interest bu'
gradually repays the capital and re
tires the loan in about 20 years. The
money comes from the state savings
banks. The depositors receive $50 OF
their savings, and the money is turnet
over by the savings bank to the agri
cultural bank at Az. The agriculture
bank in turn lends to settlers and ais,
to home builders in the towns, at 5%
The 1% margin taken by each institu
ton pays all the expenses of admins
tration and last year the savings BAN
made $4,000 profit and the agricul
tural bank $500 The profits go int
a reserve fund and the agriculture
bank has a surplus of accumulated pre-
fits amounting to $176.000. The ayr
cultural bank has power to issue d.
bentures for the purpose of securin
money to loan to settlers but so ia
this has not been necessary $50
We have lost $50 in the last fv
years ssss.
The agricultural bank also perform
ed a very valuable service last yea
when 1t came to the csc of the farm
ers at a time of crop failure cause
by lack Of rainfall. Many Of our farm
ers at that time were indebted to tn
chartered banks who had sent on
canvassers and induced them to tax
out loans and when hard times cam
the banks attempted to collect thei
money. The farmers were unable
pay and many Of them we're faced wit
ruin. ! The government agriculturs
bank Wa able to come to their rescue
however. and provide the farmers Wit
the money 70 pay "a the charters
banks mi "a enable them to stay q
fxhsrlsnd ana produoi another crop.
Glfo (~nsuv6nse u ooavee ~ Ospselt
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