Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1915-12-24
THE LOCAL MERCHANT
AND FARM CREDITS
ENogbitant Rent for Farm Property
Suggested by u. Il. Campbell as
big Factor i'm Completely of
Farm Credit Problem

Campbell, Fho dealt with the prob
lem of farm credits, Parts of Mr..
Campbelrs address are quoted below.
The problem Of farm credits is of
vital importance to every merchant
and is perhaps the most difficult
problem which confronts us in our
daily routine of business.
If it were not for this ever yeXing
problem OF credits with its attending
problem of collections the managing
of retail business would be com
paratiyely easy.
However, this problem of credits
is one of which we should not COM
plain, but is one which we should
seek to solve in the best and most
busness-like manner possible.
am not one of those who believe
that the credit system should be
abolished The country is full of
good, prosperous, energetic citizens
who can thank the credit system for
the fact that they are not today
members of the class of day laborers
OF of the class of unemployed. Credit
to many a man is synonymous with
opportunity and success.
You may say Yes. but to many
another man credit just as surely
means failure and disaster" Quite
true. Men do not all have equal
abilities for handling credit. On the
other hand two men of equal capa-
bilities as business men may be work
ing under such different circum-
stances as will make success easy for
one and impossible for the other.
Again, the variations of circum-
stances and conditions under which
different men work at the same oc-
cupation may be so marked as to
allow the man of inferior ability to
make a success while the man of
superior ability must inevitably
make failure.
These facts are what make the
credit problem extremely complex
And owing to changing conditions it
is growing more and more complex
every year.
A few years ago the farm credit
problem was not the problem in this
community that it is today. Then
the conditions under which farms
were being operated especially by
renters, were more uniform. Land
rented then for one-third grain rent
If renter asked for credit we knew
that his prospects for making good
were all right If he was a man
who bore a good reputation for hon
esty he was pretty safe risk. The
conditions under which the renter
operated at that time made uni
form degree of success possible.
Land was valued at that time at
from $25 to $40 per acre and the
land owner was satisfied with his
percentage of revenue. The valua-
ton of land gradually increased and
the land owner in order to maintain
the required percentage OF revenue
must exact more rent from his ten
ant, until now rents range from one
third grain rent in a few instances
to four. five and six dollars cash
rent per acre. And it is quite fire.
quently the case that in order to
pay this exorbitant rent it is neces-
sary for the renter to mortgage his
crop and equipment to the bank,
with the net result that unless the
renter is an exceptionally thrifty in
dividual and has all circumstances
favorable he will have hard time
making ends meet and keeping out
of financial difficulties.
AS a matter of justice to the land
owners we must say that they are
not entirely to blame for this condi-
ton. In great many instances the
renters themselves in their eagerness
to secure land have offered higher
rents and have helped to bring upon
themselves conditions which in some
cases are well nigh intolerable.
In considering the question of
credits it is not our object as mer-
chants to try to devise ways and
means for cutting down credits. but
to try to devise ways and means for
extending more credits if possible
and of extending credits on safer
basis. Safety first" in the matter
OF credits applies to our customers
with the same force that it does to
US. II We extend credit which
proves to be bad and gets US into
trouble, it gets our customer into
tFHUhIa al a o.s.,o Al.