Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-05-19
DEAN cURTlss, OF IOWA STATE
COLLEGE, ADDRESSES DIS
TRIcT BANKERS.
NEW SYSTEM PROVIDING
LONGER LOANS NEEDED
Closer Relationship Between Iowa
Banker and Iowa Farmers Becomes
erease-VitaI Changes in System Of
Farm Financing Becoming Necessary
,Dacial 10 Times ReD,lhlicau

Special 10 Times Republican,.
Ames MAY l9-"Iowa bankers and
Iowa farmers should come more
closely together in a mutually helpful
relationship" said Dean Charles F. Cur
tiss. of Iowa State College, in an address
to the district bankers in convention,in
Ames He declared that it would mean
a larger banking business, because it
would increase the success and pros
perity of the farmer and that it would.
in addition. mean a more highly pros
porous state. Particularly did Dean
Curtiss urge the Cooperation of the
bankers in establishing a satisfactory
system of rural credits thru which the
farmer might secure long time loans
at low rates of interest.
There are 1900 banks in Iowa
which places Iowa third in the rank
of states from the standpoint Of bank
deposits" said Dean Curtiss. in en-
phasizing the Importance of close
relationship between the farmer and
the banker.
There are in round numbers. els
600 farms in Iowa, producing one
billion dollars worth of farm products
annually. Practically all of the pro-
ceeds of this billion dollars worth Of
farm produce goes Immediately into
the banks. and il is needless to say
that considera BILE Of ii stays there. II
is natural and proper that it should.
as the banks help TO finance the farm
ing operations. The relationship be-
tween the bankers and the farmers
may he increased 10 the advantage Of
both parties. The most successful
bankers I have ever known. in both
large and small banks. have almost in
variablv been men who have kept IN
closest touch with farming operations
Indeed. some of them have themselves
as large or larger interests In farming
than they have in banking. 1t is said
that some bankers farming operations
need the resources of good bank to
insure their success. This is some
times true Of other farms as well as
bankers farms. At any rate. the
Iowa farms need the help aud CO.
operation of the Iowa banks. and most
of the Iowa banks would go out Of
existence If il were not for the re-
sources of the Iowa farms.
Must Revise Farm Financing.
The farmers have greater need of
the bankers help and support today
than ever before In a township sur
veyed in eastern Iowa, the seventy
farms in that township represented,
with the land. stock and equipment, an
average investment Of over $4,000
each. The farmers Of Iowa. are spend
ing $4,000 annually for farm build
ings and Improvements. They are
spending about $4,000. 3V3 annually for
farm machinery. and 10000, 900 for farm
drainage The largest and best
equipped farms in nearly every COM
munity represent a larger capital in
vestment than the leading banks.
Some vital changes must neces-
sartly come about in farm financing.
Instead Of short loans at high rates.
there will be more long time loans at
lower rates on the amortization plan
Of liquidating of the Indebtedness.
This may be called farm financing or
a rural credit system but il will in
crease the efficiency and resources Of
the farms and both the farmer and
the banker will profit thereby. I be-
lieve that the local banks can and will
solve the local credit problem in Iowa.
Iowa farm securities are good enough
This system will secure longer tenure
and better farmer on every farm. In
general: and this Will insure greater
output Of products and greater re
sources from the farms Of Iowa and
consequently more money in the banks
Of Iowa"