The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1915-11-19
AN IDAHO CREDIT PLAN
Weiser Merchants Devise Scheme to
Aid Local Farmers.

erS which was devised and put in Oper-
alton by Weiser merchants that
works well there has awakened the
interest of the federal reserve board
of San Francisco, who intend to adopt
it. 1t is given below as taken from
the Weiser American:
At Weiser, Idaho, the Merchants
association, composed of thirty-one
members and comprising IS per cent
Of the business interests of the town
have entered into cooperative ar
rangement for extending credit, which
has meritorious features as to justify
widespread adoption.
The plan referred to is devised with
reference to extending credit to farm
ers, and it's main features are the
following:
Application: The Weiser associa-
ton has appointed a representative,
the major portion of whose time is
occupied in the duties of field man"
At his Office at certain hours of speci-
fled days farmers file with him appli-
cations for credit to the extent. de-
sired. These give information as to
the applicants assets and liabilities.
These applications are passed upon
by an executive committee of three
ton
Crop Mortgage Upon approval of
his application, applicant executes to
the representative Of the merchants
| association as trustee mortgage COW
ering his growing crop. The mort
gagor obligates himself to do certain
things in connection with the pro-
duction of the crop, and failing TO do
| these gives to the trustee the right
to take the necessary steps to develop
the crop and harvest it.
Credit Certificates: Upon execution
of the crop mortgage, credit GER
tificate is then issued available for
use in buying of any Of the members
of the merchants association, whose
I names are reprinted upon the certifi-
cate. This certificate is sign
ed by the trustee and is much
! like letter of credit, setting out the
amount and conditions of the credit
Blank drafts reading "on or before
| November LIST, etc." and drawn on the
| trustee Of the merchants association
are given the mortgagor in connection
with the credit certificate. When he
makes purchase from any member
of the merchants association one of
these drafts is filled out for the
amount and given in exchange for
the goods, the seller making appropri-
| ate endorsement upon the credit GER
tificate; the last seller takes up the
| certificate and delivers it to the trus-
tee for registration The trustee is
thus kept informed constantly of the
advances made to any of those to
| whom credit is thus extended.
Drafts of this character constitute
such paper as would undoubtedly be
readily acceptable from the seller for
discount by any local bank desiring
to increase its loans, and would in all
probability be acceptable by banks in
| larger centers.
Member banks having such paper
would find it viewed with the utmost
favor when offered to their federal
reserve bank for rediscount
The length of the paper proceeds
from the fact that there is the specific
security of the crop, which, under
normal conditions would provide the
liquidation of the debt; then would
follow the general responsibility OF
the farmer; then that of the redis-
counting bank.
In stead of more or less inadequate
supervision of borrowers by the rep
resentatives of the various members
of the merchants association, none of
whom would have information as to
the total credit extended to any
farmers, this plan would centralize
much supervision in the trustee act
ing on behalf of all thereby securing
important economy of supervision and
and much greater efficiency because OF
all information as to credit extensions
Fullest competition in selling is
maintained. The mortgage is for the
common benefit of all sellers con.
cerned. If it ran only to one member
of the association, the farmer would
necessarily be obliged to confine his
purchases to that one, thus eliminat-
ing competition.
1t is stated that upon the death o.
one mortgagor, the trustee proceeded
to harvest the crop at minimum cost
thus saving the estate and assuring
the most economical harvesting re
suit
, The results of operation are thu
final test of any plan. This is TIL,
first year during when this plan ha
been in operation at Weiser, Idaho
1t is stated that the crops threshet
and under control of the merchants
T association make certain that every
, cent advanced under this plan will
, be repaid in full without single
, loss. st>j#ss-ass,
In the consideration of nlanS 70,