The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1916-04-30


have known bankers to have be-
come obessed of the idea that
they do not want to change this
method because the farmer
might become less dependent on
the banker. and the rate of in
terest might fall, resulting in
lower proportionate profits to the
banker. / think you will agree
with me that no banker ever
made a more fatal error in his
calculations. The banker who
does not build his own prosperity
on a foundation identical with the
best interests of his community
is building on sand, and ultimate
~ his structure will fall,
Cattle Loans Prime Paper.
Livestock raising enables the
farmer to get into a profitable
business and at the same time
supplies the banker with first
class loans. Something like
$500, 900, 600 is loaned annually
on livestock in a few western
states, and the banks which han
die this paper regard it better
than any other paper they can
secure. 1 have known a single
bank to loan directly on cattle,
S5O,000,0 900 without losing a dol
lar. / have a friend who has
been making cattle loans for his
bank for q years and expert
enced his first loss this year, a
loss l may say that was simply
due to the obtinacy of the bor-
rover and was Insignificant in
amount. Times of financial stress
have proved cattle loans self
Iiquidating when high class COM
mercial paper and even giltedged
bonds faced a dear market.
"As your state develops in live
stock raising you will have OPP
portunity to handle this class of
loans The demand for beef
products is, as you have often
heard, rapidly increasing with
the growth of our population,
while at the same time millions
Of acres of land in the West and
Southwest that a few days ago
were exclusively given over to
herding cattle have gradually
been taken up by farm settlers
and diverted from grazing lands
to general agriculture.
What the Farmer Can Do.
There is no other business as
far as I know wherein a man can
safely operate on such a large
proportion of borrowed capital
as livestock raising. If you have
a farmer customer who can raise
$500 and is equipped to take care
Of a small herd of cattle you can
safely loan him $1,000, or per-
haps $500, to be added TO the
$500 and invested in livestock
L 49,
If he buys 80 cows at $50 per
head and one bull for 500 he
would invest $1,000, of which
s1,400 is borrowed. With rea-
sonable success he would raise
each year Is calves worth when
six months old $50 per head at
present prices, and if ne sold
these he would pay you his en-
tire Indebtedness in two years.
He would then have 80 cows
clear. with which as a margin he
could borrow a sum sufficient to
raise his herd to 100 head. In
other words, on $500 invest
nent he might in two years con-
troll herd of 100 cows worth
$4,000 and be in fair way to be-
come wealthy. He is building up
his soil. creating a bank account,
and taking his children from the
cotton fields to the public schools.
Are Cattle Too High?
But, someone will say, cattle
are too high to engage in this
bushes now. I admit they are
high. In our business we are
taking the high price into consid-
Grafton and are requiring great
er margin on our loans on that
account. Yet L cannot see any
decline in prospect for two or
three years.
II think this is about as good
time as any for the South to ex-
tend its cattle raising industry.
You have two great factors in
your favor-a mild climate and
cheap land You need not fear
competition with the northern
farmer Take your pencil and a
piece Of paper and figure the
northern farmers position. He
has a COW with a calf one day
old. The cows milk is worth
CSC per day more than It costs
to produce 1t. II he feeds this
milk to the calf. at the end OF
six months the calf will cost him
$45. Will he do that? How can
he compete with the Texas rang
er who caniraise a calf six months
old at cost not exceeding S151
But you can compete with your
Texas neighbor. You have SINH
lar conditions of climate, chear
land and cheap feed. With you II
1t simply a question Of taking ad-
vantage of these, Of grasping an
opportunity
The Meaning of ssOpportunity.'
BY opportunity. I do not NEAR
something that comes only once
in life time. and If not seized
then is gone forever. To me op-
portunitv is ever present
your opportunity in the. South