The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1916-05-26
LIBERAL LOANS AND LOWER INTEREST RATES
FARMERS ARE ADVOCATED BY State Bankers
RURAL CREDITS" BILL WAS Ex.
PLANNED AT CONVENTION
YESTERDAY BY W.. p.
MAlBuRN.
Speaker Averred That Greater OeveI.
opement OF NJ Farms Would in
crease Money Supply.

One OF the most interesting address
es delivered before the annual conyen-
ton of the West Virginia Bankers
Association was that given yesterday
afternoon by Hon. W. 2. Melburn, see
rotary. from Washington. u. c. His
topic was on Rural Credits. The
speaker Is quite familiar with the bill
recently passed by congress and mis-
address was a very interesting one.
In substance II follows.
Agriculture - Backbone
Agriculture is the backbone of AM
our people are farmers Of are dependent
upon them. The value Of our farms, IN
Guiding the improvements thereon, Is
not less than StO.OoO. % u.OOO and the an
nual product - calculated to be $500
100000. Nevertheless. IN spite Of these
Wonderful figures. u was estimated by
crs are paying Siz per cent interest on
a borrowed capital Of approximately So
100000. 0OO.-a much higher rate than Is
paid by merchants. manufacturers,
transportation companies or those en-
Eaged in any other line OF industry at
all comparable I'm size and amount OF
money invested and annual product with
that Of agriculture. The average rate
Of interest charged the farmer I'm the
state where conditions are most favor
able IL nearly o per cent or 80 Ia per
cent more than the highest ate paid
by the farmer in Germany TO his lands
chaft. where the prevailing rate varies
from s1 TO "a per cent.
The result OF this enormous burden
which the farmer Is obliged TO carry is
the creation OF a great social problem
and a great economic problem. The
social problem - the trend of popula-
tion from the farm TO the cities. The
economic problem Is the increased cost
OF living. the greater part OF which H.
due to the increased non~-productivs
population and the decrease in the pro-
ductive population and the diminishing
returns 90 those engaged in agriculture.
Not only is an army of young men and
women leaving the farms every year
for the cities. but that vast bod OF
cmigrants that seek our shores have.
OF recent years. been hCrded in the al
ready o~vcrpopulated cities instead OF be-
ing guided to our farm lands which
need them. Naturally the cost OF pro-
ducing farm products has increased and
this has had a very p~erceptible effect on
the cost OF living.
Tenant Farmers Increasing.
There Is another serious side of this
problem; every tcn-year census taken
by our Government shows an inCreas-
insly large number OF farms being
worked by tenants. The tenant farmer.
having no permanent interest in the
land he c~ulttvates and having very lit
Tie available capital. a. a rule takes all
he can from the soil and puts little or
nothing into n. He does not erect build
tngs, buy live stock or use fertilizers
because he cannot afford 10 and he does
not know that his tenancy will last
long enoug TO enable him 10 beucnt
from any gain from these increased cN-
ptnAANuftNs IE consequence Is that
farms become run down and exhausted.
the land Yields fcucr bushels per acre.
and another addition is made 20 the
cost Of living.
There have been many attempts
made To turn back sc tide from the
farm To- the cities but they have proven
EnsucecsSful The reason is that they
have been based ON uncconomlcal prin-
clples. II b. very well TO teach tho
farmer Co build better roads. To- make
his home more comfortable. to give his
children "a hrffGr FHuUHfNUu IN icon him
self and his family Boo closer ouch with
tn" llic or 90" community. but ninety
nine time out OF a hundred tho farmer
hacks IN" means Co take these steps
which would make farm lf. more at
trtctlNe. IN" say tu make the cry
Back Co the farm" practical is 20
make farm hfc more profitable. and one
method Of making Do $50 U.s. through A
plan which viii enable tho farmers.
who have tho best security IN the world.
10 borrow money more readily and more
Chcaply than they have done heretofore
Two Kinds of Credit.
There are two kinds Of credit ucce--
sary for farming. In order TO diefin-
Eutsh them they may be classified
roughly. as long time credit and short
time cr,dtt-long time credit meaning
loans which cannot DO paid iu fun out
ot tho next crop. while short time cred
u consists of those loans made for an
hual or seasonal purposes, and which
must. unless tho farmer ie running hc-
hind. Do paid when his crop is made.
Agriculture short time credit is diff
f'rcnt from what is termed commerrial
short time credit. Boo that 90 begins
about whore commercial credit leaves
cn. The shortest farmers loan ie gem
orally Longer than the longest CONNER
ctal loan. This BE- owing fp tho fact
that the farmer product is turned over
only once a year. while the product or
tho retail merchant. which sets the pace
Tor all commercial credit. o. turned over
FeNeral times a year. 4 step. and a
good long step. has boon taken in the
FEDERAL reserve act towards providing
long ana snort tim' loans for farmers.
Agriculture paper running six months
may he accepte for rodi4rouut hv the
Federal reserve banks. and real estate
loans may be made by member hanks
other than those in central reserve
cities M - o. certain percentage NJ
their capital and surplus or their time
deposits. Neycrthrless. sa the Federal
reserve system fs intended primarily
20 render assistance 10 tho commercial
interests of tho country through the
banks, 81 De- necessarily based on de-
posits payable az demand and on short