The Bowbells tribune. [volume] (Bowbells, Ward Co., N.D.) 1899-1969, 1920-12-24
lBy E. B. Russelll

#5..> ss7Ss& (By- e. B. tuSSell) y."a'=.l
. Every banker in the Northwest is
4 Interested in farming. You don't
Il have to prove this. 1t is like the
case Of General Ben Butler, famous
military leader and politician. A
friend once asked Butler who was
the smartest man in Massachusetts
2''I am Butler replied. But how
are we going to prove it?" the
friend persisted. We don't have
& to prove IT," said Butler, "T'll adj
q NIT it, So we ''nn't have to prove
that all bankers are interested in
+ farming. They will admit it.
$s.. Now If bankers are Interested IN
farming, which they admit they are
why shouldn't farmers be interested
in banking? This article is writ
ten to show a few reasons why
they should be.
aising a crop is just half of a
farmers job. 1t means hard work
and often gives him a backache.
But the other half the job, just
as important, is to dispoes Of the
{ crop at profit. That. requires
hard work, too. and may give the
farmer a headache along with his
) backache. There is not much
chance for an argument as to which
half of the farmers work is most
irr>ortant. If he didn't raise the
crop he wouldn't have anything to
sell. On the other hand If the
farmer can't sell his crop at a pro-
At. he might just as we'll not have
raised it.
When q farmer is raising his
crop he does the work by himself.
When he has it ready, to sell he
:.c.--ts plenty of help and advice.
Then it is that the banker admits
his interest in farming. And to
understand why the banker. is in
terested in farming, ssat this point.
1t Is up to the farmer to become q
little interested in banking.
The bank with which the farmer
generally has his direct dealing is
a small institution, pobably with a
capital OF around $25, 900 and de-
posts Of four or five 4 times that
amount. Tho local merchants and
the elevator proprietor deposit. their
snare money wifh the bank; so
does the farmer If he happens to
have any. 3. ~ 'i's. s "a e-9s ~.
what becomes OF this money af-
ter it is. deposited? Some Of 1t
is loaned out in tile vicinity. The
merchants may require small lines
OF credit SO that they can pay cash
and take discount on their goods,
the elevator man may need a little
fatp to carry the line of coal and
other supplies he has laid in, .
few farmers may be given long
time loans on mortgages.
R But during the larger part OF
the year the country banks have
more money than they can use 10
cally. There is more constant, all
athe-year-around demand for money
In the cities where industrial plants
keep busy regardless Of whether it
ig> planting. growing or harvesting
weather. U S
Tho Country Bank Controls
The Prosperity OF the Farmer
The local bank is too small to be
able to afford to keep an agent in
the Twin Cities or whatever may
be the commercial center Of the
district. So it sends it's surplus
funds to some large bank iii the
commercial center. The small
bank becomes q correspondent" of
the large bank and the large bank
becr-.-- a "depositary' for the
small bank. The large bank takes
Gale of the funds sent 1t by the
correspondent banks, dividing the
earnings with the small bank. It
takes care Of transfers Of lnone7,
by check and draft. which the small
bank may have to make, and 1t
sends the small bank collections
and other business In it's u own
ne'eh borhood. II @sl. :. *s.5tS5
This happens during the larger
part OF the year. when money is
more plentiful in the farming dis
three months or so in the summer
and fall Of each year the condition,
IS reversed. When harvesting be-
gins farmers must, have money to
bssss,-,, twine and pay their harvesting
crews. In every country town
there Is a greater demand for money
than can be supplied through the
local banks. The result is that the
country banks call upon the de-
positary banks In the large cities
for help The large banks, as a
part Of the written or nnwritten
agreement with the small banks
that have become correspondents
40, raw what funds they can from
city use and apportio this money
to othe various & 3: countr ~ banks in
to their needs and in
proportion to the bus! mess that the
country bank has thrown the city
bank durIng the proceeding year
55ssI can be- seen what a hold the
large city bank has over the small
country bank. But for tiei = city |
connections few ~ ountry banks
wQIld dSbe able. to- op perate prof itably:.
They would be unable to dispose Of |
their surplu Il money during the. |
tt,,,es when they! have more sfundg3l
than they need. 8; and would be uni
able to get outsid 81 m oney during
the Stirle when they need more than
they have III n. IN
The fact IS that the city bank has
tha assameS hold upon the country
bank that t hef co oumtry bank hasI
oyer the individual borrower. And
every farm on kno oWs the kind zof
hold the c untry bank has over thel
inffi idnal borrow
III BY coli citing i its loans. a soon sas |