The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1918-04-25
MAN|T0BAEARMERS
GET RURAL CREDITS
Canadian Province Provides
Short Time Loans
at Cost.

Just across the Minnesota border,
the Province of Manitoba is showing
the United States what the Nonpar-
tisan League means by Rural Credit
banks operated at cost" This prov.
ince has provided a wonderful credit
system which brings the advantages
which the city business man has in
getting short time loans to the door
OF the farmer on the prairie. There
Is nothing like it in the United
States; yet the great dailies which
are trying to save" the farmer from
the Nonpartisan League, have never
told the farmers anything about this
new system in Manitoba which would
solve one of their great problems.
The farmers of Manitoba got it be-
cause they have an important voice
in the government of the province;
h farmers of Minnesota haven't even
heard of it except through their own
press and friendly country newspa-
pers because certain special inter-
ests like the way credit is supplied
to the farmers at present. The Act
was passed in Manitoba on March 9,
1917.
Methods Of Operation.
When as many as Is farmers in a
locality decide that they want a bank,
the Province appoints a secretary and
treasurer to push the local associa-
tion. After so farmers have Joined
each subscribing $500, and after 10
per cent of their subscriptions have
been paid in. the Provincial Govern
ment subscribes half as much and
the local government another half,
making in all $4,000.
With this $4,000 as a basis, the
society establishes a credit with some
bank and borrows money at 6 per
cent. The money is then loaned to
farmers for short periods, a year at
most, although renewals are provided
Tor, at Z per cent interest. One such
society now in operation has estab-
lished a credit of $4,000 by this sys-
TEN and there is no reason why, as
the system becomes better under
stood, the $4,000 basis should not
give as much as 500, 900 of credit.
The farmer who borrows from this
association, must, of course, supply
security, but he does not have to
have so much security as our rural
BANKS commonly demand. If he
wishes to buy seed, the farmer gives
his note for the amount and a mort
gage on the crop; if he wishes to buy
cattle, he likewise gives his note for
the amount and a mortgage on the
cattle and their increase.
Modern Methods Needed.
The Manitoba system does not do
away with the need for banks but
does for the farmer what banks in
reality have made only a pretense of
doing; it gives adequate credit. A
similar system applied to Minnesota
would give the farmers short time
loans at 6 per cent, or Z per cent,
at the most instead of the much
higher rates they commonly pay.
Equally important many farmers who
cannot borrow now what they need.
would be supplied. That our bank
ing system does not meet current
needs is proved by the fact that with
in a month after the county seed
and feed bonding act had been passed
in North Dakota, $4,000, 900 were Dor.
rowed by the counties in that state
for this purpose.
The Federal Farm Land Banks will
in time. il they eve get beyond the
claws Of the Money Trust. lower the
rates on farm mortgages in Minnesota
by 2 to 4 per cent. Since these mort
cages amount to not less than $780,
100000 in this state. the saving to the
borrowing farmers will be not less
than $4,000. 900 yearly. The Nonpar-
tisan League advocates additional
provision such as that in Manitoba
for the short time loans on which
q saving as great as that to be made
on mortgages (f not greater) can be
made. AS u peace time measure it
would make farming more profitable
but more than this. if such a system
were in force now in the state, our
all important crop acreage could be
much greater. At the very time when
the farmers should have unusual
credit advancements, the rural banks
are short of money and are tightening
up on farm loans.