The Washburn times. [volume] (Washburn, Wis.) 1896-1976, 1922-01-12
Bayfield, County Farmers
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LONG LOAN PLAN
SOUGHT BY FARMERS
Survey Shows Badgers are
Closely Pressed; State Ex-
perts Ask for Rural Credits
Aid.

MADISON-The average Badger
farmer is having rough shedding and
taxpaying time won't make him any
more cheerful, according to the pic
ture drawn by $40 leading farmers
who replied to a QUESTIONABLE of the
department of agriculture to deter
mine just what rural conditions are.
With this information as basis,
the department, represented by Com
missioner C. p, Norgord and others,
recommended changes in the federal
reserve system, at the rural credits
hearing in st. Paul.
Joseph A. Becker, crop statistician,
submitted four inquiries to bring but
the financial status of farmers. Reply
ing to the query whther the farmer
is able to obtain credit at his local
bank, i72 stated that he can and 137
stated that he cannot; 202 said he can
procure credit in limited amounts,
and II that credit can be had only
at excessive rates.
No Credit for Many
These replies indicate that in many
localities no credit is to be had. In
addition, the belief OF most of the
farmers is that bank credit-usually
expressed in three and four-month
commercial loans-does not meet
rural needs, even when it is to be had.
Of GAO farmers, 21 say three-month
loans are adequat, 109 approve six
months, 314 one year, $50 two years,
and 16 more than two years. These
longer periods are necessary to ma
ture the farmers products, which
sometimes requires two or three sea-
sons to grow.
That the farmer is closely pressed
is shown by QUESTIONABLE to dis,
close whether the average farmer is
forced against his best judgment to
sell. Sixty-two per cent are COM
PEELED to sell his crops; 80 per cent,
that he is compelled to sell his milk
sows; 48 per cent, that he is COM
PEELED to sell his young dairy stock,
and IS per cent, that he is compelled
to sell his meat annals. These replies
point to depreciation of livestock re-
sources through enforced sales in
the present depression.
Farmers need money urgently to
meet interest payment on mortgage
debt, according to 449 answers; to pay
standing short-time loans, say 418.
for current expenses, say 372; for hay
and feed, say 1873; for machinery and
equipment, according to 1T; to carry
crops until the glut is over, say 189.
Fifty-six replies say loans are needed
to pay taxes, and Is say living ex-
penses must be met by borrowing.
Special Department Asked
The Wisconsin delegation in st.
Paul recommended that subsidiary
department of the federal reserve or
the federal farm loan system be
created to handle two and three-year
farm loan, with suitable local agen-
cies to which the farmer may apply.
Until private capital is available, the
delegation recommends that surplus
earnings Of the federal reserve sys-
tenn be made available to start the
system off. Rural credit loans
should be handled by state commit
tee, similar to the state committee Of
the war finance corporation, accord
ing to another recommendation.
Meanwhile, the delegation favors
amendment of the reserve act to per-
NIT farmers paper being accepted
and redscounted under proper in
dorsement. C. P. Norgord, Dean
H. L. Russell, H. A. Moehlenpah,
George McKerrow and c. B. Hawn
spoke for the views Of the state.
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