Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1915-02-11

are American farm mortgages. In,
stead they run for from twenty &c
sixty years with an agreement incor.
porated into the mortgage that each
year the farmer shall pay a certain
sum OF money which shall include in
terest and a small installment upon
the principal, In this way the mort.
gagor gradually pays off his mortgage
paying little more than the amount
which would In America be required
as interest alone. The chief advantage
TO the farmer Is in this fact that he
Is allowed to pay of the loan by max.
Ing small annual or semi-annual pay.
ments. Other advantages are that he
viii never have to renew the mort.
gage which will continue to run until
the payments have cleared the farm
OF the debt; he will never be com.
PEELED to pay any renewal commits,
sion, and will never have to go to the
expense of bringing down his title or
having 1t examined every two years,
as 10 done under our American sys
tenn.
Reiffeson and SchuIxe-pelitxsch.
The Reiffeson and Schulze-Delitzsc
banks are smaller community institu.
tons, organized upon the cooperative
plan, and are not operated for profit
TO the investor. Reiffeson banks op
crate more particularly In the coun
try while the SChulZe-Delitzsch banks
operate largely in urban communities
The Reiffeson is the most purely co
operative. While the Reiffeson banks
loan money for long period of time
they do not generally loan for so long
a period of time as do the Land
schaften. They receive deposits from
their members, paying them interest
as do savings banks. The one at
Cassel, Germany, which can be taken
as fair representative of its type
charges ga per cent. on short time
loans. They pay Az per cent on de
posits, which are left with them for
an agreed long period of time, and
per cent. on deposits left for
shorter time. It Is found, however
that the rate of interest varies In diff
ferent places. Since these banks must
meet the competition of the Joint
stock and savings banks In each com
munity. They generally are able tc
compete successfully for the reason
their expenses are very light, their
officers usually serving without salary
and since they do not wish to make
any large profits to pay of any In
vestors as do the other banks.
Go Slow.
The best rural credit system in the
world, II actually in operation would
not prove a cure.al FOR our present
rural ailments. 1t would not get you
anywhere. The farmer who has ne
gotiated loan upon the most favor
able terms has made no actual ad
vance. He Is just where he was be
fore, II / am running a losing bust
ness the more money | borrow the
worse off | am. II | am not produc
Ing good product which can mar
ket readily and profltably. the less
put into my business the better Rural
credit without good farming and good
marketing is a delusion and q snare
Easily obtained loans are no substi
tutes for brains and business sense
and a marketing system.
Rural credit can do just one thing
II can enable a man to get possession
of farm and the equipment with
which to farm. If the farming bust
ness into which the loan launches him
IL not paying business the loan has
simply injured him by getting him
into losing venture. said a loan
will enable him to get possession oil
a farm and equipment. This posses
sion is temporary and will be of no
permanent advantage unless he makes
the land and equipment his own by re
paying the loan and of his honest and |
hard won earning. After all 1t is rural |
earnings which spell success and good |
marketing conditions whether coop |
erative or otherwise are an absolute |
essential
I0E"S IN THE NEW STOCKS |