Durant weekly news. (Durant, Choctaw Nation, Indian Territory [Okla.]) 190?-1944, 1915-04-30
FARMERS CREDIT.
SIe1hods by Which the Individual
Can AIaI<e Productive Improvement
on Favorable Terms.

Three plans by which farmers In
ac,uai practice have succeeded in I'M
ornving their personal credit and se-
.1r,ns loans at less than the pre-
calling prices Of interest are outlined
IN Farmers Bulletin No. 654. BY the
n S department OF Agriculture
.gow Farmers May Improve Their
personal Credit"
The first of these plans was work
sd out in certain localities in Nortn
,.so,a 80 well that the farmer has
,een able to borrow money on MS
,r-sonal note at s per cent at time
when the usual rate in his vicinity
varied from 70 to IL per cent TO
.rnre this reduction in interest the
ear,ner agreed that the bankerss ouy
their dairy stock for viii
ne loan and sell it to him at actual
,ps The purchase in a number ot
,ssas was conducted with the advice
NJ a state or federal specialist. The
men who furnished the money were
thus in position to make certain
,hst ~ was used for productive i'm
,rovements which would enable the
a,orrower to repay the loan. Under
mis- plan, in fact the farmer may De
sa,5 10 have borrowed the improve
nent itself instead of the money to
a,rv II with for the disposition of the
money was taken out Of his hands.
plan of the same general charac'
ser was carried out a year ago IN
southern Idaho. but in this case three
br tour banks united in the purchase
of "A carload of dairy stock. In an
pther case in Nevada local creamery
suppred the money and held back
mart of the return from the milk and
cream delivered by the borrowers.
Altogether 49l COWS and heifers were
disirihuted among sixty-four FARM
ers. the aggregate amount OF money
represented b ythe loans being S3s,
iSS This is the simplest OF the
shl,ee methods. 1t consists mainly
iu permitting the lender to say how
the money that he loans shall be
spent. Usder such circumstances he
naturally feels more secure. and the
rate OF interest lessons with the risk.
In regions where for various rea-
sons this plan has not proved posi-
ole. another method is to have the
FARMERS collectively sssume certain
guaranty for the notes given by in
aTrylduals. In Southern Montana for
example. nineteen farmers organiz-
ID an association and appointed trus
tees to represent il in negotiations
with local bank. The trustees were
authorized TO guarantee limited
amount to the bank and the Joint and
several liabilities OF the association.
With this additional security the bane
agreed to advance thousand dollars
10 the association at per cent inter
-azt when the general bank rate was
~ and - per cent. Two delegates
FROM the association purchased with
the money two carloads ot heifer-
which were distributed among the
members. each animal being charged
with proprotionate share for all the
incidental expenses connected with
xhe transaction. Each purchaser
pledged himself to care for and breed
'shv cattle by methods approved by
the trustees
In the third plan the guarantee Is
furnished not by the farmers them
svgves but by outside interests. As
'.ne plan was developed in Wisconsin
and Minnesota, this outside interest
consisted II local bus men who
uVre ii, their way as murh concerned
as The farmers with th- general i'm
-yrovrment of agricultural conditions
r. thciT regions Under this plan tht
business men subscribed a certain
percentage of the fund loaned with
ne understanding that this was I,
constitute guarantee fund to pro
tett the bankers, Otherwise the plaI
was In its essential principles like th'
pian adopted in Montana.
Rome OF these mi eth ois require an!
nsore than a temporary organization
3 permanent cooper atIs. credit asso
alton Is, of course. a different mat
-isr. Which has. however, many lvIl
fz.ses. Such associations ncorrag
habits of saving. afford training Il
Rsgness methods. and may estabiis'
"a collective fund for common asTicu
8=rai purposes az well as proyidin
,';r5s c their meI' srs on m"re rea
zonable terms than they could obtai
Individually. The fundamental priI
ciple OF their management is that n