The Miller press. [volume] (Miller, S.D.) 190?-current, 1918-02-21
STATE CREDITS Law
BENEFITS FARMERS
Money Loaned by State ut Lew Rates
Is Appreciated BY People

folga Tribune-In a state like
South Dakota, where the farming in
terests predominant, and where the
main industry OF the people. with the
exception of a small area in the Black
Hills. is farming and ranching, laws
that benefit the farmer and make It
more convenient for him to conduct
and finance his business of farming
and ~ranching. are and will continue to
be of great Importance. and this state
has always taken a lead along such
lines, and at the present time has and
has had for years more laws bene-
Sting the farmer than any other state
In the northwest and probably the
whole ration.
Some two or three years ago Con-
sress passed what is called the federal
rural credits law. which enables farm
ers TO borrow money at a low rate Of
interest from the federal government.
While the federal act Is an excellent
measure. several of the leading citi-
xens OF the state. especially Peter
Norbeck. who Is now Governor, con-
ceived the plan Of a state rural credits
law. along about the same lines as the
federal act. but with tess red tape
and without the necessity OF local or
CARNATIONS az required by the federal
act. The Governor made the state
rural credit matter a plank in his plat
form both in the primary and general
election campaigns, and a bill intro
duced and passed at the last session
of the legislature which enacted into
law the state rural credit system.
The state appropriated $4,000 for
putting this act into effect and giving
the system a working capital. But
the state is not limited to that amount
In its loans. as a non-partisan speaker,
who spoke in the local opera house
some time ago.. would have US be-
lieve. and the farmers of the state can
borrow millions from the state for the
Improvement of their farms and the
general betterment OK farming condi-
tions. and to supply the money for
these loaas the state sells its bonds
in the money centers Of the country.
A bank has a capitai OF say $4,000
but its loans to its customers are not
limited to this amount. No, 1t receives
deposits from those who have money
to invest and I'm turn loans this money
to those who need it for the carrying
on of their various pursuits. and the
loans Of a bank usually amount to
many times it's capital stock. In just
this manner the state rural credit sys-
tenn is conducted. The state borrows
money on its bonds and loans II to
farmers on first mortgage loans.
Up to the first of February the rural
credit board of the state had issued
bonds 10 the Mount OF $500, 600
the last issue for s50O,000 being made
on January 18TH. These bonds have
been sold in Chicago at ~ per cent
interest and the state loans the money
in turn at 5k per cent-the difference
paying the expenses OF the rural
credit board, the cost OF bonds, etc.
OF course, with the calls the federal
government is making for money from
time to time. II may be necessary for
the state to pay more than ~ per
cent interest on 1t bonds. but up to
this time, II has been able to secure
ample funds for its work at that rate.
The rural credit commissioner, c. NJ.
Henry, informs the Tribune that up to
February first the board had received
AT applications for loans amounting
to $1.696. $50, and that the board has
acted upon 373 of these and approved
loans for s1.O94.1O0 A number of
those who have applied for loans do
not wish the same until May or June
and the board has deferred action on
these applications. but is taking them
Up as speedily as possible. although
1t has been handicapped somewhat in
being unable to secure experienced
help in conducting its work.
The state law. not only allows farm
ers to secure loans for the improve
ment Of their farms atNa low rate OF
interest without any unnecessary red
tape, but 1t also allows them u borrow
to . larger per cent than the federal
law. While the federal law limits the
amount that can be borrowed to fifty
per cent, the state law provides for
the loaning of seventy pcr cen. Of ths
appraised value OF the land and forty
per cent OF the insured value OF the
improvements in the way OF buildings
The loans may be in any amount from
$500 to $4,000. and the law wisely
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