Western Carolina Democrat and French Broad hustler. [volume] (Hendersonville, N.C.) 1913-1915, 1915-10-14
RURAL CREDIT FOR NORTH
CAROLINA FARMERS PROVIDED.
(By Prof. R. 4. Reed, Flat. Rock.)

Wy w. As 4SOO0, Ito num- E
1t hardly seems possible that the
farmer, the most important first hand
producer Of primary wealth, could
have stood by and have seen the man
ufacturer, the jobber and the whole
sale and retail merchant whose very
existence depends on him, develop
their methods of securing operating
capital and credit systems while he
has become a part of no system
through which he a secure either
capital or credit. If the manufacture
er and the merchant need credit, how
much more So does the farmer need
/ working capital and credit with which
to produce his raw products.
The farmers of North Carolina are
| paying time prices to the merchants
from 40 per cent 10 so per cen above
cash prices. Having no "a but the
crop lien Of securing working capital
| or credit, they buy fertilizer in the
| spring expecting to pay for it when
| the crop is marketed in the fall, and in
! so doing pay the larger part of their
profits to the supply merchant in time
| prices. Then again they buy their
harvesters in early June and pay $40
/ when their crops are marketed in the
| fall, while, If they could~ Amandthe-
necessary credit the same machine
would cost only $118 in June. 1t is
not only in these things but in all of
/ their supplies they are giving the sup
ply merchant the biggest end Of their
profits.
If they go to the banks, they get b.
little better results there in paying
| double and treble what they get on
their deposits, and even at such rates
there is difficulty in securing credit
when it is needed most.
The results of such a condition r
I not hard to see. Having little or no
working capital, they are forced to
/ plant less and become the small pro-
Queer Of products which they.are many
times glad to sell at a margin Of a
| margin that barely enables them to
exc out a living in spite of their hard
| work.
Is this the situation everywhere
might be asked? In Germany in 1913
there were 10000 local organizations
| Of farmers combined In Rural Credit
| Unions doing a business of q little
| less than Z billion dollars a year in
| almost every phase of agricultural
production. In Denmark, we find a.
similar situation which has not only
| made farming more profitable but has
been the chief instrument. in giving to.
| Denmark a splendid system of rural
| schools that is the envy of many ma
! tions. In Ireland, it has meant in
creased thrift and descreased tenancy.
To use the words of Sir Horace Plum
kett, it results in Better farming,
business and better living"
In our. own country, the-Raral Cred
it Union is making beginning. In
Wisconsin, Massachusetts, New York,
Texas and North Carolina Co=opera-.
Etive Credit Unions have been encour-.
aged and provided for by the state leg
| ~islatures.
In any form of cooperation there is
| strength and telling power in matters
of finance. What organized Rural
Credit Unions have meant Inc now
mean to Germany, Denmark, Ireland
and other European countries, they
would NEAR in North Carolina. Far
mers by thus combining together get
wholesale prices and rates, so to
speak on working capital and credit.
They secure money easily and when it
is needed at reasonable rates instead
of paying from 8 per cent to II per
cent. Commercial banks are not de-
signed to fit the needs of the farmer.
The rate in organized Rural Credit
Unions is from 3 per cent to 8 IL per
cent for long term loans, the kind of
credit accommodating the farmers
needs.
But can this be done in North Caro-
lima? The past Legislature of 1915
passed an act giving every encourage
ment to such Credit Unions. The act
not only provides for the organization
and chartering of unions but for their
supervision also. A supervisor has
been authorized to give farmers infor-
nation about organizatfonb superyi-
! sion, to auditing their books and give
general advice and help whenever
needed. The only requirement being
made is that as many as seven men
shall ask for such assistance in the
organization or union.
1t is now up to the farmers them