Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-12-30

ancy. and then we may expect real
trouble. We now have a system OF
federal farm land banks developing
constantly under fire. They r a
step in the right direction. We need
similar banks in our various states
operating under s ate charter.
Young Farmer Needs Credit.
But we are equally in need Of
whereby the young farmer
;IAym. THIS Is a matter of loans ex-
tending over a period Of from one to
ten or fifteen years. The present
short term loans subject to. constant
renewal are not satisfactory. The
cnattel mortgage system is equally
unsuited,, n the present system of
1--WE and ten year mortgages falling
due all at one time also is unsatis-
factory. Here we need again a sys-
tenn of banks or trust companies to
assemble the farmers notes or evil
dences of debt. to issue short term
bonds based upon these. and to Sc
cure from the borrower annually or
more often partial payments to APP
ply on the same as Il sinking fund
from yea" to year according TO Ithe
conditions of crop yield. price. etc.
These institutions might be under
federal or state charter, The federal
farm land banks or similar institu-
tions under state charter could per-
form this service.
Thus far ] have only referred to
credit based upon farm land. build
ings and productive equipment such
as live stock. implements n ma
chinery. Under such a system lower
Interest rates would be secured il
buildings and equipment were regu-
larry insured. thus distributing The
risk more widely.
Credit For Crops.
"T11e third special type Of credit
needed in farming has to do with the
growing of the crop. This will vary
in length of time from three months
in the vegetable business to- n year
or, e~vensthree. five or ten years in the
ease Of grain and cotton farmers.
growers OF live stock and orchards.
for the farmer who plants on orchard
Of tree. fruits must wait from four to
eight years for his first real crop and
J the breeder Of live stock often from
two to four years. A first attempt was
made to provide in a small way for
this special need when the fedora
reserve system provided for loans to
farmers extending over a period of six
months, possibly subject to renewal
Students Of the subject now generally
agree that both national and state
: UdlkS Slloulu JIG dulllol ~ heE
such loans for q. period up to one year
with definite agreement that such
loans will be renewed from year to
year in the case of live stock and fruit
farmers over the number of years
necessary to bring in the first or sec.
ond crop. after which the loan coulo
be gradually reduced. The clothing
merchant turns his goods once G
season. Ninety day loans suffice FOL
ihim but the farmer is in a dinerenl
kind Of business n needs a different
type Of loan. One might as we'll ex.
y pect to plant wheat and corn will
the same planter-one needs a whea'
drill, the other a corn planter. So !
is with credit. Here again the grow
ing crops and rive stock should bt
insured as the merchant or manufac'
turer insures. The result should b
lower interest rates.
Marketing Increase.
THE fourth type Of credit needed
is in connection with marketing
Here our first need Is for a system o
grades, Standardization and recog
nized market classes. Our secont
need is bonded warehouses, elevator
, and cold storage with. insurance pro
portioned to time OF insurance ant
{ risk involved and u third is a sys
. tenn Of warehouse receipts which ma.
[ be accepted as satisfactory collateral
Our revived war finance corporation |
a temporary but only half-hearted at
tempt to help supply the need. Wit
u standard grades and market classe
9 insured and bonded warehouses AM