The Miller press. [volume] (Miller, S.D.) 190?-current, 1916-11-02
STATE RURAL CREDIT VS..
FEDERAL RURAL CREDIT

The democrats are pointing with
PRIDE to the rural credit law Just enac-
teu pE and holding out high
rope TO the farmers of cheap money.
IheIr claims. II is liable to fan as
h had as did the postal savings bank.
bromise and there are Jokers in ii
"HiCh VIII prevent its successful
operations.
Two claims are made for the law
FIRST that II was the best law which
could be passed without offending the
eastern interests, which is probably
true.
Second, that II will secure some AL
aillonal democratic votes, which may
When the hearing was held at Sioux
Falls recently with a view to de-
termining the location of one of these
some very, embarrassing questions.
hey were Informed that six per cent
interest was contemplated with some
slignt nope that they might eventually
farmers replied that they could now
borrow. money as cheap without going
through al the government red tape.
lf you, Mr.. Farmer, want to secure
q loan under the proposed federal
rural credit plan, you would have to
get nine other farmers to sign your
note and guarantee your
They must also mortgage their farms
Tor about thirty years TO secure your
loan. OF course. the plan is that
rneSe Ten FORM an association and
reclprocate, but under the provision
or the law II requires unanimous ac-
lloh ana any one man can balk after
wards when the next mans turn has
been reached. Is II likely that MANY
American armer are willing to have
tneir property tied up in such n way
II you secure a loan Of 81 GOO "a
Eve per cent of il, &5O.O Oj is viii,
req ana you are compelled to invest
naiS $4,000 in stock in the branch bank.
The best thing that can be said for the
law is that 1t is optional with The
farmer whether he wants to make any
use OF this system or not.
one outstanding feature of the law
IS mat there are a number OF office
holders appointed to manage It. at
$lo'OO0.OO a year. Then. there is a
provision for federal inspectors who
anime your property. This enables the
NATIONAL administration to take care
OF some more deserving democrats"
STATE SYSTEM.
The matter OF rural credits would
have a d~iscouraging outlook for the
south Dakota farmer were II not FOR
the TACT that relief is promised from
another source. The present repubIi-
can state administration have, at the
suggestion Of members Of the Equity
league, submitted an amendment 10
the state constitution providing for
n state system Of rural credits. This
Is me amendment which the republican
candidate for governor, Peter Norbeck
has been fighting. so vigorously for
not. only in getting IL through the
Iegislature, but has conducted a state
paign,, and you viii also remember
that ii was one OF the subjects n
controversy in the Norbeck-Richar6s
ue Ta IN the last primary campaign.
me state plan proposed Is the same
as mas been in operation in New Yea
n Tor a quarter Of a century. Ex-
perience has shown that the actual
cost OF handling the loans. inciudinp
losses, has been less than one-haIf 90
one per cent. II Is similar TO tho :,I,n
that has been in force In Australia for
over 20 years and has more recently
been. adopted by British Columbia II
provides for the state using its credit
for the benefit OF the farmers in the
matter OF securing, farm loans. That
time bonds which can probably ho
sold at three to -four per cent win
the understanding and agreement tbat
the .money is secured for the prIrnose
or loaning To the farmers and the
mortgages are held by the state In
trust as security, the state guarantee
ing their payment. The money viii
be loaned on a system similar to thai
on which the 81, 0OO, 900. 90 OF .chooI
money Is now loaned. and this state
IN its twenty-five years OF experience
IN roaming this money from the school
fund has never lost a dollar.
The leading bankers of this state
are endorsing the plan FOR they have
not sufficient money to make these
loans themselves, and many Of them
feel that IL will not only be for the
general welfare. but also add to the
prosperity OF the banks II the farming
communities are more prosperous
Money secured In this way could be
loaned on long terms-say TWENTY-FIVE
or thirty years under the Amortization
plan. That is, a small on the
principal to he made each wear untiI
the loan is wiped ont. Farmers favor
ing thI. plan should vote for consti-
tutfOnaI amendment number four ar
next election day.-Redield Press.