The Barre daily times. (Barre, Vt.) 1897-1959, 1915-04-07
IMPROVING THE FARMERS CREDIT
Methods by Which the Individual Can
Make Favorable Terms.

Three plans by which farmers in ac-
tual practice have succeeded in improv.
| ing their personal credit and securing
loans at less than the prevailing rate
| OF interest are outlined in a new publ
cation OF the United States department
of agriculture, farmers bulletin No
654, How Farmers May Improve Their
Personal Credit"
| The first of these plans has worked
out in certain localities in North Dako-
ia SO well that the farmer has been
able to borrow money on his personal
note at per cent at time when the
usual rate in his vicinity varied from 10
to l2 per cent. To secure this reduc-
ton in interest, the farmer agreed that
the bankers should buy the dairy stock
for which he wished the loan and sell it
to him at actual cost. The purchaser
in number of cases was conducted with
advice of state or federal dairy spe-
cialists. The men who furnished the
money were thus in position to make
certain that it was used for productive
improvements which would enable the
borrower to repay the loan. Under this
plan, in fact, the farmer may be said
to have borrowed the improvement it,
self instead of the money to buy it with,
for the disposition of the money was
taken out of his hands.
A plan of the same general character
was carried out year or two ago in
southern Idaho, but in this case three or
four banks united in the purchase of
carload of dairy stock. In another case
in Nevada local creamery supplied the
money and held back part of the re-
turns from milk and cream delivered
by the borrowers. Altogether 49l cows
and heifers were distributed among GA
farmers, the aggregate amount of money
represented by the loans being S39,4S3.
This is the simplest of the three meth
DDS. Ii consists essentially in permit
ting the lender to say bow the money
that he loans shall be spent. Under such |
he naturally feels more |
secure, and the rate OF interest lessons
with the risk
In regions where for various reasons /
this plan has not proved possible, anoth- /
er method is to have the farmers collec- I
lively assume a certain guarantee for
the notes given by individuals. In south
ern Montana, for example, 10 farmers or
ganized an association and appointed
trustees to represent it in negotiation
with local bank. The trustees were
authorized TO guarantee limited amount
TO the bank on the joint and several
liability of the association members. I
With this additional security the bank
agreed to advance $4,000 to the associa-
ton at per cent when the general bank
rate was 10 to II per cent. Two dele
yates from the association purchased
with the money two carloads of heifers
which were distributed among the mem
Ders, each animal being charged with a
share for all the ineiden
al expenses connected with the trans
'ction. Each purchaser pledged himself
70 care for and breed the cattle by meth
IDS approved by the trustees.
In the third plan the guarantee is
not by the farmers themselves
Dut by an outside interest. As the plan
Vas developed in Wisconsin and Mime
'Ota. this outside interest consisted of
ocsl business men who were in their
way as much concerned as the farmers
With the general improvement of agri-
ultural conditions in their regions. I'm
Ter this plan the business men sub
cribed a certain percentage OF the funds
oaned with the understanding that this