Saturday news. (Watertown, S.D.) 19??-19??, 1916-08-03
THE RURAL CREDITS BILL.

There is a diversity Of opinion among well informed people
with resncet 10 The result Of the operations OF the rmaI credits
vote.
some men Of standing. in the nation. both republicans and demo
Gratis. and others, have expressed the view that the working of the
bill viii be most favorable TO the rural communities in that a line
Of credit will be more easily established and maintained at a lower
cost in the matter Of interest ehargesaoney, say these men, wall be
easier
On the other hand, there are those who can perceive no especial
benefit that will accrue to the farmers IN the operations OF the meas
IRE. 1T authorizes the establishment oil a board, patterned after the
Plan of the federal reserve board, but it does not authorize this board
to issue currency, which. in the opinion of some critics, is essential
If the American plan is to accomplish the work claimed for it.
The Saturday News is not advised in detail concerning the
provisions of the bill. 1t @sy be that it will work to the benefit
CT the farmer, but if it does so work, as stated in a former issue,
I'VE shall be agreeably surprised.
Practically every. facility for borrowing which this board win
afford the farmer IS now available through private loan agencies
or farm mortgage companies
This rural credits board, as we understand the situation, is
10 serve mainly as a go-between between the farmer and the money
lender, or the credit lender, as the case may be.
Today there are millions and millions of insurance company
funds loaned on farm mortgage security, the interest ranging from
five and a half to seven per cent. No inconsderable portion of it
was loaned at SIX to seven per cent.
This board, authorized by the rural credits law, may possibly
render some assistance in discovering Q disclosing the identity Of
parties desiring to place money on farm mortgages, and, if this be
the case, funds may be a trife easier to get.
But take Watertown as an example. There are various parties
q nnancial responsibility who loan on farm mortgages as security
some even who loan direct to the farmers and buy and sell farm
mortgages. 30 FAR as we know, no one has ever been turned down
fr lack OF funds at some of these agencies, at all events. There
IA usually been enough and to spare.
1t, therefore, the G. w. Hart Farm Mortgage company or w
!. MOTIFS, on "a. ~. WaIrath, or the various other farm loan agencies.
nave s, l peen able to secure all the money that the farm mortgages
y III absorb, what more can this rural credits board accomplish if it
Too, rs to serve merely as a loan agencyY
me saturday News confesses that it may not have a complete
understanding OF the law, but the board, not being clothed with
power to issue any sort Of money or currency no. ven q draw
apon any banks credit for it, excepting as any other agency might
eraw, must depend upon those who have = ! land foa III ~ 60
~ the demand Tor farm loans.
sc then, At we have anything resembling a fair conception of the
PROVISIONS o. the measure, the rural credits board is but another
Ivan agency formally commissioned by the government to 90 forth
a. search of both lender and borrower.
are we rghtY We shall see.