Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1916-10-06
RURAL CREDITS
In A A'VisiOn-COusin Ben Tells Farm.
er Ned How to Borrow Money
Through the New Law.
Letter Number One
Washington, D, G., Sept, z 1916.
Dear Cousin Ned

!
Washington, DIG, Sept, z 1916.
/ Dear Cousin Ned
Your letter telling about the hog
cholera and the black rust is discour-
aging land l admire your spunk in
not allowing your bad luck to give
you the blues.
! wish l could confirm your high
expectations about getting quick re-
lief out the new Rural Credits Law.
l happen to know how that law works
for L was secretary, you know, of
a member of the American Commits
sion, which went to Europe to study
this question. l made the trip and
attended the Investigations. But there
was no such a doubie-back-action fab
| bargasted law as this in all Europe.
Don't let them stuff you with big
words about the Landschaft System
and the Raffeisen System. We have
neither; we have the Democratic
Complicated Conglomeration -noth-
ing like it anywhere else.
Of course we need a Rural Credit
Law; this is the only civilized country
IN the world that has not some such
provision for financing it's farmers.
But l am too well posted ON the
intricacies of this Hollis Law, passed
by the Democrats this summer, to. be
fooled by it. They can't sell me any
such a gold brick, and I see that they
haven't fooled the Republican Party,
for in its platform it declares:
eve favor an EFFECTIVE system
Of Rural Credits, as opposed to the
Ineffective law proposed by the pres
ent Democratic administration"
You know, Ned, Pm something of
a prophet, and l have had vision
: about this Hollis Rural Credits Law.
I'll tell you my vision now, so you
} can file it, and year hence check up
your actual experience with what
: tell you now.
You expect to borrow through the
new Rural Credits Law and I'll ex-
: plain it all to you in my vision. All
5 you need to do is this:
r Tell your neighbor-farmers all
= about your being hard up. Explain
t to each one what you will do with the
1 money you want to borrow and con-
1 vince him that you are sane and know
e how to farm as well as he does.
e By talking over your need of put
t ting a forty-year first mortgage on
), your farm for half it's appraised val,
j ue, draw out from your neighbors
: that they too need money. That viii
n give you an insight into their affairs
: which you can talk over with the
: whole neighborhood; it is cheerful
e thus to talk about Bill Jones' mortga.
), ges, with all the township. 1t will in
n terest the merchants with whom Bill
r carries an account; also the banker
: who holds Bills note, due next month
t Discover nine or more neighbors
n who are just as hard up as you are
n Bill Jones can help you. Call a meet
e ing of all who want to borrow at least
e $4,000 or you cannot get cent.
n If your land, aside from any build
e ings, or other improvements, would
e sell under a sheriff's sale for $4,000
/, you are entitled to borrow $4,000 OF
S it. If there are buildings that cost
+ you $4,000 to build, five years ago
they may be appraised now, say, a
i $1,000, and you can borrow $500 OF
n the buildings-no more. That makes
It loan of $1,000 on a farm which ha
i an actual value (according to apprais
i all of $500 under the sheriff's ham
: mer; you probably think you coulC
n sell it some day for $1,000 or $4,000
vt But you cannot really get all that So,
)" 300, for you must buy stock in you
)" Credit Union, which you and you
- nine neighbors formed in order tina
y you might borrow.
1t Buy stock when you are alread
lie hard up? Certainly; you must bu
% $115 of the stock, or you cannot Dor
ID row the $4,000, so it leaves you So,
Is 1856 to use, but you pay interest O.
IS $2,300 You may get some dividen
D. on the stock, so cheer up. The inter
II est you pay is certain, the dividend
lie well you know how stocks go. Yo
n get a dividend if there is any ne
profit left after paying all expense
r of the Federal Land Bank located sev
Id eral hundreds of miles from yol
e. Anyhow, you get a handsome 1.-the
" graphed certificate of stock-not liv
e. stock, just "stock", which carries
s; double liability on it.
e. What is a double liability? VIII
of that means that you may lose tn
20 $115 that you have been forced to il
I'll vest in the handsome stock certif
nd cate; that is on liability" Then
;" Bill Jones, or any of your other eigf
ri or nine neighbors fail to pay the
n notes, you may be called upon to hel
he pay the loss to the amount of anotht
to $115; that is the second liabilit
st That makes the "double liability"
n order to borrow the sum of $3.50
Lr- you have to invest $115 in stock ar
he get only $2,185 net, and you have
n guarantee your neighbors' debts
h, the amount of $3.50.
nd Of course, you know your neigl
to bors are honest; have you ever el
r. dorsed their notes at bank? Sti
since you need to borrow for you
self you may think of the wife ar