The Bozeman courier., 1921-04-13
LOAN ASSOCIATIONS
WILL Be ORGANIZED
PLAN Is TO ENABLE FARMERS TO
SECURE FUNDS TO BUY BREED
ING AND DAIRY STOCK
FINANCING FIRST COMPANY
Movement Is Backed by Montana De-
VeIopment Association, Which VIII
Send Representatives to All
Communities of the State

----F|--~~
Billings. - Livestock loan associa-
tions, which will enable the farmers Of
Montana to borrow funds for the pur-
chase Of breeding and dairy stock,
will be formed in every agricultural
community in the state, according to
plans announced this week by the Mon
tana Development association.
The object of the business mems or
ganization ia forming these loaning !
companies is to encourage and make
possible the more extensive breeding /
Of stock and dairy cattle in Montana.
The hard winter of last year. the high |
price Of hay which obtained and strin- |
gent money conditions seriously de-
pleted Montana's livestock resources. |
1t is now considered to be a very op-
perfume time TO go into the livestock
business for many reasons and the as
sociatiOn believes that it presents a
big opportunity to the average Mon
tana farmer. Good stock can be bought
at favorable prices for some time, it
is believed, and breeding can go for
ward under the best possible condi-
tions.
The plan, which in a general way is
borrowed from many European coun-
tries, where it has been in successful
operation for many years, was worked
out by l. D. 0Donnell, prominent Bill
lings farmer, and the first loan COM
pany to he formed under the plan is
now getting ready to take care Of the
needs of the farmers of Yellowstone
county.
Many have come 20 the conclusion
that dry farming in itself is not profit
able and can only be made profitable
by the breeding and raising of live
stock in connection with it, the asso-
citation points out. The dairy cow prac-
tlcally means a payday every month /;
hogs and sheep will give returns at
least every six months; beef cows and
mares return an annual profit
The associations to be formed i'm the
various communities will he headed
by boards of directors composed of
| dS-
sociation will be independent of other
similar associations, handling its own
A loans and paying its dividends accord,
: ing to profits made. Cooperative pur
= chasing of car loads of stock may be
7 resorted to, however, among variou:
;, associations.
n Each organization will be subjec
: to inspection by the state bank exam
: iner and will be administered alon,
t practically the same lines as are tn,
building and loan associations of tn,
state, affOrdng to wage earners
: school children and others a splendi,
< opportunity to save money by means
& of small payments on stock mad
q monthly.
q Loans will be made to the farmer
q of the state at eight per cent, althoug
q accruing dividends probably will max
g the rate slightly less, it is thought
2 Each borrower will become a stocB
q holder and finally will cancel his loa
q with paid-up stock. The terms Of pay
q ment will be determined in most case
q by the borrower himself and will dit
q fer according to the kind of livestoc
q in which he elects to invest.
q A third class of stock, in additio
q to the savings and borrowing stool
z will provide an opportunity for bus
ness men and others who wish to pu
z chase fully paid-up stock for the pu
y pose of helping the association to a.
z quire the necessary capital with whiC
= to operate. All classes of stock wi
z participate in any dividends whiC
q may he paid and which are to be d
q clared semi-annually.
3 In addition to building up the qua
8 ity of MOntana's herds and increasir
2 the states resources and productio
= these associations will also encoura.
z thrift among all ranks of citizens, a
q fording a safe and convenient methC
z of saving small amounts.
y The associations will insist upon re
q istered sires; they will encourage Il
VI purchase of community sires and fac
q itate community changing of sir
2 They viii pool purchases of go,
8 grades of stock, thus saving conside
q able money to the Individual farmt
8 Another important advantage viii
q will accrue through the plan, it
q thought, is the pooling of shipments
q market and the marketing of live sto
q under the most favorable conditio
q possible.
g Representatives of the Montana I
" .,o1ox,,,,onf oscao;o+;on .r;1l x-;~;+ go