The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1919-03-13

ing of farming operations in general
not combining it to any one section.
Missouri statistics show that owe,
one third Of farm loans made are 70,
The purpose of buying more land and
making improvements, and about 81
per cent simply borrow to take up the
old loan.
Wisconsin statistics show that 81
per cent of the farmers borrow to pur-
chase land, per cent to purchase live
stock, z per cent to erect buildings
and Z per cent for other purposes.
The census from 1900 to 1910 show
ed that land increases in the middle
west averaged 10 per cent per year.
so the farmer that bought land and
borrowed money at the rate in that
section Of from 5 per cent to 6 p +
cent to buy his neighbours land had
good profit from increase in value, to
say nothing of operation profts-a
good illustration of business judg-
lnent
A five or ten year loan with privi-
leges of repayment now prevailing
makes ideal working capital. In the
middle west investigation shows that
the most popular form is the five
or ten year loan. One company that
puts out 20 year and five year
plan, found that only per cent of the
farmers preferred the 20 year plan.
The 2O-year plan is made on the amor
tization plan under which the working
capital gradually disappears and can
not be replaced with another first
mortgage until the 20 year loan is n
tirely paid.
Losses are few. The Union Central
Life Insurance Company-the pioneer
life insurance company in the farm
loan field--in 46 years experience
showed losses of one fourteen hun
dredths Of one per cent.
A large company operating in
Missouri Al years showed no losses.
The National Life of Vermont in 20
years loaned over S68,000,000 with no
losses.
These statements are significant.
They show clearly that the farmer has
been going quietly about his tasks,
carrying on the shrewdest business
game that has been conducted by any
set of men in the United States. Now
the Governments loaning plan is in
force, giving the farmer a new and
big supply of low rate money. He
will probably take advantage of it or
not, as it suits his conditions and loca-
ton, and continuing to stand back and
collect the 2 to 6 per cent excess he
makes on his borrowed capital. This
is what makes money for the banker,
and the farmer likes it just as well
as does his city cousin who sits at the
mahogany desk behind the marble
partitions. Take away the bankers
opportunity to borrow or cut off the
merchants credit, and they would all
have to 90 out of business, on their
present basis Of organization.
The farmers Strength.
There are three ways in which we
make or earn money. One is to labor
for it with our hands or head, the
other is to empty and profitably utll.
ize the labor of other persons and
the third is to employ capital and
let it work for US. AS to whether the
American farmer believes in this last
method or not. lock at the figures on
farm loans and see what the best
farmers in the United States are do
ing. The only difference between
them and the bankers is that the lat
ter boasts to the world in every bank
statement he issues, while the farmer
gets the money but just keeps quiet
about it.
It is an established fact that pros
porous farmers prepay fewer loans
than the poorer farmers If the farm
ers' idea of borrowing is to first buy
land and then bend every effort and
use every spare dollar TO pay it off as
quickly as possible, there would be
many loans on immatured loans ana
many loans would be taken up when
due, provided, Of course, that the
farmers are taking in more than they
spend which all figures show they are
doing.