Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1916-04-28
SAYS BANK CREDIT
LARGELY PERSONAL
FARM. STOCK AND HOME DIS.
CCSSES RURAL CREDIT AND
"POLlTICAL SHYSTERS."

mention. was discussed by Farm.
Stock and Home, one of the greatest
OF the farm papers, in a recent issue,
and this is what was said:
"This journal has repeatedly called
attention to the fact that bank credit
is to large degree a personal mat
ter, and that a man or a neighbor-
hoo gets bank credit accommo-
dalton quickly enough whenever the
paying quality of the business is de-
termined, and the moral risk is gilt
edged. 1t follows that as the use of
credit is merchantable thing, when
ever money becomes tight the more
speculative risks are first withdrawn.
Or, stated another way, when two
men in the same neighborhood go
into a bank to get their notes re-
newed, their personal ability and
character will determine the treat
ment accorded them by the bank.
Similarly, between two commune
ties, that one will fare best which
conducts it's affairs with the best
showing of profit. 1t is difficult to
imagine how, for example. rural
credit law could achieve all the poll
ticians promise for high interest
section and at the same time prove
workable in low interest areas. Nat
urally it is the farmer paying 10 per
cent we should first consider. Will
law fixing the rate at per cent
help him? Hardly. If the risk is
too great capital simply will not in
vest at the lower rate. And if cap
ital takes the risk borrowing will go
on at faster rate than ever, and a
period of speculation will follow. In
the end things have got to come
down to paying level.
Conditions More Important.
"As before pointed out, the con-
ditions upon which the loan is made
are more important than the interest
rate. 1t is not bank credit, but land
speculation credit, store credit and
machinery credit that is at fault.
When a man has exhausted all his
other ways of going into debt, and
then tries to tap the bank for loan,
he cannot expect, on his impaired Sc
curities, to get favorable terms.
Unfortunately, many farmers in
the Northwest are exactly in this sit
uation today. The political shysters
come along and tell them how hard
up they are, and point an easy way
out by merely passing law! II real
prosperity could be obtained that cas-
lily we would all be millionaires.
The slower. the surer, the only road
to financial stability offers nothing
in a remunerative way to the shys-
tiers. So they fail to point out the
fact that adversely. hard work, close
living are but temporary conditions
incident to the growth of the busi-
ness of each man and each neighbcr-
hood.
Paying debts, especially when
they are heavy and the family de-
mands great, is a slow, heartbreak-
ing process. But making the bust
ness pay a little more than the outgo
each year is the only way so far dis
covered to bring one to the goal OF
competence. The reader should re-
member when he hears the political
shyster bewail the poverty OF the
farmer, that the farmers of the
Northwest, in the aggregate. have ar
rived at a degree Of prosperity FAR
beyond that of the average city man.
Way Out of Debt.
"He should observe the fact that
what has been said about the local
and personal features of credit ex-
tend to his own neighbors and neigh
borhood. II he is one Of those whom
the pathy-for-an-office credit re-
formers point out to as down.
trodden' let him observe that the
way out of debt is not to wait Tor
somebody to pass law, but to i'm
prove his stock, his home surround
ings, his methods of business, and
finally his neighborhood. The very
general prosperity of the Northwest
has been built up by attention to these
details. To succeed study the sue
cessful man and in general broad
way adopt his methods.
This course will solve nine-tentns
of the rural credits problems OF the
Northwest, and judicious modifica-
lions of our laws will account for the
remainder. OF course such methods
get the SINISTER politician neither pub
licity nor office, but what II they 90
ri