Mansfield mirror. (Mansfield, Wright County, Mo.) 1908-1957, 1915-02-18

particularly so far as relates to
long time loans, will be solved to
any extent by the new Federal
Reserve act. This act gives the
member banks the privilege Of
discounting ) year farm mort.
cages to the extent of 25 per
cent of their capital and surplus.
The effect of its operation would
oe as follows:
(0) In the state of Missouri
the member banks in agricul
tural districts THAT is. in urban
and rural districts) of 5000 peo.
pie and less, there are only some
80 banks, with a capital and sur
PLUS combined of approximately
only ) million dollars. Twenty.
five per cent of this would be
81 ,250,OO0, which would be the
extent to which these banks
could utilize this power.
% They would be 10th to
avail themselves even of this
privilege because the ordinary
country bank does not care to
tie its loans up for five years
time.
(c) The Federal Reserve act
does not permit the Central Re
serve bank to rediscOunt these
farm mortgage bonds as they do
commercial paper.
tai The plan of amortization
presented by the ) year iimita.
ton.
In the state as a whole, ex.
elusive of st. Louis, Kansas City,
Sedalia, Hannibal, Springfield
and st. Joseph, there is a total
of some 1900 banks and trust
companies. Of this number 1926
are absolutely prevented from
joining the reserve system be.
cause their capital does not
reach the specified amount of
$4,000.
| beg to submit to you the fol
lowing authorities: Mr.. Myron
T. Herrick, ambassador to
France, and a great banker, who
has made a study of this ques.
ton, said:
The machinery for credit in
the United States in defective
and inadequate from the point
of view of agriculture. = +
There are no means whatever
for granting long time loans: no
arrangements, except in a few
local and special cases, for the
promoting of people back to the
land. Farmers cannot afford to
tie up their money for a long
term in the mortgages Of neigh.
bors. The prime object of the
reorganization of rural finance in
the United States is to create q
system whereby farmers may
utilize their savings as circula.
tory and working capital and OBJ.
tain from the general public all
the other funds needed for
equipment, improvement and
acquisition of land. If farmers
and their neighbors were to in.
vest their disposable funds in
real estate mortgages, they
would be subject to the necessity
of borrowing all the more heavily
for raising and marketing their
crops and live stock"
[ had a long talk with Herr
Gwinner, president of the Deut
sche Bank of Berlin. He is con.
sidered one of the most astute
fnanciers, business men and
farmers in the world. This is
what he said:
Il have just finished an inter.
view with the president of one
of your railroads. | told him
American export of manufac.
tured articles was not your
trouble. 1t is growing and will
grow fast enough--you can't
help it. What you require is
development of your agricultur.
al resources. Food is what the
world wants and must have, and
the supply is short. You must
give your rural people better ed
ucational advantages, and you
must give them cheap capital.
If you had good machinery for
rural credits your land bank de.
bentures would sell here and
the world over at as good rates
as your government bonds"
nuota tho follou;no from tho