The log cabin Democrat., 1920-04-09
URGE RESTRICTION
 ON FARM CREDITS
SAY THRIFT DISCOURAGED
Views of President of Arkansas Bank CTS Association are Endorsed by
 Many Others.

While it is admitted that much gooC has been done by the policy of banks throughout the state in financing farmers and enabling them to buy their supplies at cash prices, some oi the local bankers are in accord witt views recently expressed in an ad- dress by Pres. Stuart Wilson of the Arkansas Bankers Association, that the extension of farm credits is be- ing overdone and that banks should not advance money on which to make crop until the crop is planted.
 i The practice of making loans on crop mortgages during January, Feb ruary and March, MT. Wilson declares is a bad one, both for the banks and the farmers, in that it discoura ges thrift and efforts upon the part of the farmer to be self-sustainng. Banks in some cities of the state, t IS said. have already adopted a policy of re- fusing to extend credit for making a crop before April 1.
 The greatest benefit from such a policy, 1t is said. is that it practically forces the farmer needing credit to grow a sufficient quantity of feed to last him at least until planting time. Hundreds of thousands of dollars are sent out from Conway every month during the spring for the purchase of high priced feedstutfs. which ought to be grown at home and the raising ot cotton Is considered too great gam ble for bankers to finance it, when al. the feed for the teams making 1t an@ all the meat and bread for the familiez on the farm must be bought at unpre- cedentedly high prices and shipped here from other states.
 President Wilson's views of this subject. as expressed in an address be- fore the recent group meeting at Rus sellvilIe. are as follows:
 "The whole world is faced with most unusual and trying conditions and it seems ta me that each comnU- nity should try and solve its own financial problems anI see that they ar r~5perly handled At present, the bar rs of Arkansas are faced with the burden of financing their mer- chants, industries and farmers until another crop can be marketed. AL though no cotton has yet been planted an enormous amount of credit has been extended and the demand cOntin- ues unabated. On account of the un- precedented rains last fall, our cotton and corn crops were much reduced in yield and grade. This has made ii necessary to carry many farmers over until next fall on loans extended to make crops during 1919. In addition to this, credit in larger amounts than usual is needed to make crops this year Almost all of us are operating upon an extravagant basis, and this IS one time tht our farmers are not in the background How blind is the mind of men to fate and future events, how unwilling to practice moderation when elated with prosperity
 While the banks of Arkansas have done great good in taking farmers from credit merchants where enor- nous prices were charged, and have made it possible for them to get mon- ey at fair rates of interest so that they might trade on a cash basis. believe that this extension of credit has been entirely overdone. When a bank makes a practice of extending credit in January, February and March to farmers with which to buy imple- ments, groceries and feed and to pay taxes, believe an injustice is done the farmer in that the necessity for thrift is lessened. and, at the same time, the bank has a class Of paper which will not be self-Hquidating eX- cept in those years when full crops are made or unu ually high prices are re- ceivod. If these same farmers want ing early loans could be made to un- dergtand a year in advance that their credit lines would not be open before April or May and that they mus raise their own food and feed crops and out of a part of their profits pu" chaee farm imrlementS and pay fo' other permanent improvements n stead of extravagant spending whe' the years crops have been sold in lumn. I believe that we should se great improvements on our Arkan5a cotton farms"