Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-09-16

could take his storage ticket to a bank
and borrow what money he needed
n the bank in turn send the note
and the collateral TO the federal re-
serve bank. These loans should be
recognized and encouraged, by the
for the farmer to get money, it. is
necessary for him to sell his crop.
Certainly, q great Improvement can
be made on sound, banking principles
by extending such loans to farmers.
This would insure an orderly market
Ing OF the great wheat crop and other
crops from this state. The tobacco
fsr'neFs have solved this problem.
Pooling Plans.
In Kentucky, the growers last year.
pooled their crop, stored 1t in ware.
houses, established grades and STAN
dafds, borrowed money on 1t and
then sold 1t in an orderly manHer In
. stead of dumping it in the market/at
a series OF auction sales. The tobac-
CO grawerp of Virginia, North and
example. The Tri-State Growers as
ISOLATION was formed and 1t now has
a membership of about $4,000. One of
the requisites Of membership is the
signing of a five-year contract under
which the members agree to market
all the tobacco they raise through the
association pool, with a penalty at.
tached for failure to do so. In one
wear the association has accomplish
ed the following remarkable results:
It has signed up a membership Of 49,
900 out OF 10000 growers. or about
IS per cent; it has acquired through
least and purchase $50 warehouses
! which aSe available for storing this
years tobacco crop: IT has secured
an~advance of 100000 from the
War Finance corporation. inN addition
to some 100000 900 Of local credits.
What the tobacco grawers have done
Farm Loans Needed.
1T is estimated that the farmers
have invested capital amounting to
$50, o0o. o0o. 900. and during the past
few years there has been practically
no returns on this investment. 1t Is
estimated that the investrn ents Of all
the capital of the farms but yields a..
return Of about $40, 900, o0o, 900. The
redtscounts Of the federal reserve
bank. amounted to S14,0o0 900. 900,
and of this agriculture received IL
per cent, manufacturing Fl per cent,
merchandising 26 per cent, specula-
ton and miscellaneous 20 per cent.
When we realize that of the primary
deposits in all the banks in the Unit
ed states agriculture furnishes approx
inately so per cent. lavor 20 per cent
and all other businesses 30 per cent,
it'can be readily seen that agriculture
is entitled to more than merchandise
Ing and manufacturing combined and
; should have received $1,000, 0OO, 900,
but instead it got only 1000, 600, 900.
II the manufacturer or the merchant
was entirely unable TO secure neces-
sary loans, he would be forced to sell
his merchandise about the same as
the farmer Is and receive whatever
the purchaser would pay, notwith-
standing the. farmer has the best Sc
curity of all. that is. offered in the
market. During the past six years
since the farm loan act was passed
l by the federal government. there has
been loaned to farmers 81 the entire
country only 35~7S,666,713, which Is
an insignificant amount. compared
with the needs and value Of the secdr-
/ Federal Grades.
I'm this connection, it is absolute
standard grade for all grain recogniz-
ed everywhere in the United States.
The only effectual methods OF. fixing
the grades Of grain is through the
federal government. If a state should
attempt to fix a different standard
than that fixed by the federal govern
ment 1t will be necessary to sell the
grain under the standards fixed by
the federal government, and this COM
plication shows the impracticability Of
such an effort.
1T Is of the greatest Importance
to the farmers of this state that fed
eral aid be invoked with reference to
the grading and inspection of pota-
toes. There should be North Dakota
men commissioned as federal agents
at different shipping points in the
state of North Dakota who would ex-
anime, test and grade the different
shipments of potatoes. and the farm
er would know that this would be the
grade that would be received by him
wherever his potatoes were shipped.
The potatoes produced in North Da-
kota have attracted the attention Of
the entire country and are" sold in
many markets at a premium.
Rural Credits.
While .considerab BILE relief mas come
to the farmers Of North Dakota
through the federal rural credits act
as we'll as from. loans made by the
farm loan department Of the Bank of
North Dakota, what has been done is
49, ~ u,st ~ <SA
should not be expected to pay higher
rates Of interest than other industries.
and, in fact, considering the safety OF
the security, a lower rate Of interest
should prevail. There is no security
except q government obligation that
can compare with the security of a
farm mortgage. The large Industries
put their paper on the market prac-
tically unsecured and II a large cor
! pOratiOn such an a. railroad Recilrea
Its bonds by a mortgage on road
or equipment, the numerous compfi-
Gated factors and the expense OF a
receivership should the. corporation
+be unable to pay Its obligations.
makes it difficult, for the individual
investor to feel Is secure with these
investments az a farm mortgage.
Some progress has been made by
the federal government with refer
ence to extending credit to farmers
on stock and produce. 1t HAS been
the aim Of those interested in lsgls-
lation to encourage diversified farm
ing and stock raising. While Q loan
Of six months or q year is Of impor-
lance to holding the crop. the Joan
must be two or three years to q
farmer who is Interested in getting
ing. II q farmer IL advanced money
and buys stock on a loan Of one year,
It will be necessary for him to sell
the stock to pay the loan, but II he is
given several vars, he will be able to
get %suficient returns 20 AZ to pay his
loan from the increase and retain his
capital.
Tariff Protection.
"As long as projection d the
established principle, the farmer ID
entitled to the sa1ne c~On5idcra-
W. E#