The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1920-12-22
Tax Problems
/ in Bingham
Continued from Page ~

1
Continued from Page II
amount, have the full amount placed
to his credit at the time he secured
the loan and commenced paying in.
terest on the whole amount from that
date. If he arranged the loan in the
latter. part OF the winter and did
not need some OF the money. until
beet time and some more in haying
and some more in the second hay
crop, he would be paying interest on
all the money from the day he Sc
cured the loan until he had occasion
to use It SO 1t would be up 10 him
to lose the interest on the money
during that time or find way to
invest 1t and cash it again by the
time he needed the money to use for
1.-THE separate amounts. That was easy
for the bank and it was very little
trouble for him altho more expen-
sive.
Federal Reserve Loans
| Now under the system of borrow
, ing from the Federal Reserve Bank,
1t was handled this way. II he needed
$50 Of that money on the 18th Of
April, on that date he gave his note
for $50 and it was sent to the Fed
eral Reserve Bank, approved and
the money was sent to him. That
made more work for the bank than
the old system and If he needed SIS
in beet thinning time, another note
was made and sent into the Federal
Reserve Bank, approved and the
same thing was done at that date and
money placed to his credit in the
First National Bank at Blackf0ot.
The same thing was done at every
date during the spring and summer
when he needed any money and Of
course it made a good many pieces
Of work for the bank and great
deal of bookkeeping, both in the
Blackfoot bank and in the Federal
Reserve Bank. These notes fell due
at different times during the fall and
Mr.. Kennedy brought in the ledger,
turned to his ledger account and the
entries there keeping track of the
payments, indicated that all of the
payments were met when they are
due, the interest all paid and he did
not owe the local bank nor the Fed
eral bank cent and his reeor8 with
them was clear. Notwithstandfhs That
fact and notwithstanding that he
stood clear on the books and with
q record for paying promptly. sMr.
Kennedy said under the rules they
could not loan him a dollar now IL
he should come in and apply for it.
But if he would start in all over
again and make out new financial
| statement for the year 1921 and an
estimate for his proposed crops, by
going thru the whole transaction
again he could establish the credit
and rating and receive consideration
for the 1921 loan. We are indebted
to Forrest Trego for permitting us
to use the record of his undertakings
in this way and we consider 1t of
considerable value to our readers to
be informed about these new methods
of securing money thru the Federal
Reserve Bank in what is known as
re-discounts. With all his showing
of resources and his purebred cattle
and purebred hogs and small indeb-
tedness, most of which was not yet
due, he was only able to borrow an
additional $3.50, yet he financed all
his operations and got thru the year
in good shape.
| Other Bankers Views
Consulting a representative Of the
Standrod Bank as to where the war
rants are for county expenditures,
we were informed that SO far as
their dealings have gone they had
taken in about the usual number but
on account of the great need for
I money to serve their customers they
had used these warrants as COLA
teral in securing loans Of money to
bring in here to take care of these
customers. On $4,000 or $50, 900
worth of such warrants they had Sc
! cured a loan of $4,000 and the
money is already here serving the
| people. When the county treasury
| has money to redeem those warrants,
they will send the $4,000 out to
their corresponding banks, receive
the warrants back and get the $685.
900 or 100000 and interest whtk
they call for. The bank said there
are generally good many men about
town who have money to invest and
they buy up county warrants consid-
cradle quality. They did not know
whether these men had been loading
up with county warrants this year
but assumed that they were. II SO,
when these warrants are redeemed
in January and February and March
with the tax money gathered up in
this county, the money will be put
in circulation again by those men
and 1t will remain in the county in
the ordinary transaction.
Blackfoot City Bank
A representative of the Blackfoot
City Bank stated that they had about
100000 worth of warrants and Or
ders for warrants which they had
cashed while the improvements had
been made at the Blackfoot fair
and that they had done it to help
finance those operations and had to
carry the loan for some time without
interest. Warrants have since been is
sued and now they draw interest but
they are not saleable and they have
not vot hoon radoemod and will MT