Pine Bluff daily graphic., 1915-09-29

on which both parties do, not make. a pfoft,' tlietse ,is something 'dtshoneE; about the transactions j Sd I am go. ing Into the. question of facts. and figuEes,. and quote actual rates.
 Cost of Loanable Fands.d 5i.j, ];
 "I know bank that I consider pretty we'll managed which during the year 1914 took care of it's GUS toners. It made every loan that a client of theirs was entitled to ask for; and to do this at times borrow ed large sums of money. The only way to figure what the cost of yc.ur loanabie funds is to figure how much your average loans Were-what they cost you in the way of interest on re- discounts, interest on savings depos- it's, interest on certificates of depos- it's, interest on other deposits, ex- enses,@1taXes, etc.
 "This bank carried deposits in 1914 that averaged $1,S00,O ,O00.
 Cash on hand that averaged $70O,- 900. sasb4
 And loans of $1,500,000.
 1. "The cost to them of their loan able funds was 5.77 per cent. Their average rate received on loans was 7.23 per cent, leaving a net profit on their loans of 1.46 per cent, or $14.60 net profit on every 1000 they kept loaned for a full year.
 You understand that ill the, mak- ing of loans, some are made for a very short time-some are made up to four and six months; but they nave to be made in such way and to mature at such time that the bank will have ample funds on hand al all times to pay any demands of it's depositors. 9
 You will see that it would be, un- der existing conditions, impossible for banks in Arkansas to loan at a less rate than they are getting.
 Cheapness. of Money.
 "'YDus see wonderful rates quoted in the papers, of how cheap money is can not get that money. You have also heard it said that, if a man had bucket of ice water in a certain place he could sell it for a million dollars. But we must talk on Ar kansas conditions, to make Arkansas rates.
 "If Arkansas banks made a. pref erential rate to farmers Of six pei cent, they would, of necessity, have to loan others of better credit and higher standing, at the same rate And the small banks would either have to go out of business or reduce the cost of their loanable funds. The only way that they could reduce the they pay on savings bank deposits. Do you gentlemen think that fol the sn,all difference in the rate be. tween 6 and 8 per cent to the few farmers who will desire to borrow l for a short time, the cutting of the income to the many thousands of say. ings bank depositors would be justi. fed?
 Again, would not savings banl depositors withdraw their funds from Arkansas banks and place them in l banks in other states where higher rates were paid? r < q want to show you what small matter this is to the farmer. Take Il thc ,iOdH ok FoVV iol OV udyo. lAS !, farmer would not consider going tt Hall the trouble of warehousing and | lborrowings,pn his.s,aay 10 bales ol \ cotton, Sunlesss he expected tQ make lat least .ane cent "a pound; thai 4 would be- a profit to him of $50 or aIthe tIan5aciiOus The interest ht awould pay. even at s per cent. woulC only be $4 on the lOan. s~sss, 1 .On q loan of $50 on one bMe oi cotton. the difference in interest oI da 30 days loan of between 6 pei acent and 8, per cent would amount to the value of one-half of one pound of cotton. or cents"
 Hold Down Acreage.
 The following resolution was adopt.