Belding banner. (Belding, Mich.) 1889-1918, 1915-02-03

eral feeling was that a movement was
being launched that would insure the
instruction OF the vast body OF Am
erican farmers in the subject OF rural
credit, so that they themselves can
solve the problem along the best and
soundest lines.
In considering ny system OF rural
finance, there are three things which
should be constantly kept In mind.
One is To place agriculture on a more
thorough basis; the second one In 10
secure system whereby land mort
gage, and therefore, land itself. is
made more liquid. The third one Is
to afford ample credit facilities TO those
engaged in agricultural pursuits. land
owners and tenants, so as TO enable
them to make the business OF agricul-
ture a profitable one. Ii Is highly desir-
able TO encourage the ownership of
rural homes, but a rural home which
is not profitable to its owner will not be
held for any considerable length of
time. IL liz necessary. therefore, to
provide for system OF personal cred
il to enable those owners OF rural
homes. as well as those tenants who
cultivate farms to make paying invest
ments. Those two classes of institu-
tons should have separate controls
and be controlled by borrowers rather
than by lenders.
I'm America, the farmer for one
reason or another has generally not
been much OF business man. If he
has dairy farm there are certain
cows which he knows are profitable
without keeping any books, and others
he knows he had better get rid OF as
soon as possible, but there are many
in the herd whose value must be de-
termined with more care. The exper-
fence OF other countries has shown that
where the farmers are taught by ac-
tual experience to conserve their capt.
tai and credit they become more care
ful in all matters pertaining to farm
ing, In other words they become bet
ter rural business men.
Secondly, the advantages Of max
ing land mortgages and land more liQ-
uid are clear. At present, il man
has money to invest and considers
lending it out on mortgage he knows
that his money will be tied mp for sew
eral years, because the borrower will
want assurance that he will not be
caught by having his loan become due
Unexpectedly, so ne makes the teHu-
er agree TO let him have the money
for a period OF several years. An in
weston however realizing that he may
want money for some purpose, and
considering whether he shall tie ii
up for a fixed period, or invest in
something that he can turn into cash
az any time, would be apt to give
preference TO the tier unless he can
get a higher return on his money, so
the farmer, in order to secure the loan,
frequently has TO bid high for it. With
a system in force where an investor
can get a good security based on land
and be able to realize on IL at the same
time, this handicap would be removed.
Now as to the third point: A
means by which the American farmer
may utilize his personal credit so as
to render his business more produc-
tive. In farming, as ! have pointed
out above, two kinds Of finance are re-
CURED, viz, the means for borrowing
on the land the farmer owns in order
TO make permanent improvements and
means for borrowing working capital
with which TO buy seeds. fertilizers,
machinery, work stock and improved