The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1922-02-02
New Type Of Banks Are Proposed to
Handle Peculiar Demands Of Ma
TONS Agricultural Workers-Fed-
eraI or State Charters Possible.

Special banks to replace present day
banks in supplying agricultural credit
If present banks cannot be adjusted
to supply the peculiar credit needs of
the farmer, are proposed by DR.. John
Lee Coulter, president of the North
Dakota Agricultural college, and ma
t1onally known as an agriculturist
economist.
The present banks were organized
for a purpose entirely different from
that of supplying all Of the different
kinds of farm credit needed, in the
quantity needed, at the time needed,
and at rates of interest in proportion
to the risk, DR.. Coulter says, and the
chief trouble with our credit facilities
has been our belief that these banks
could do these things. DR.. Coulter
says:
Our first task is to carefully ex-
anime into the types Of credit needed !;
our second is to use our present sys-
TENS OF banks where they serve eff
GENTLY; our third is to invent special
attachments or make necessary ad-
justments to serve special needs; and
our fourth is to develop special types
OF credit in those cases where the
regular system fails to serve.
If we do not provide now that free
land is a thing of history, for a sys-
tenn of credit whereby the young man
with little money but with brain and
Drawn and farm sense can buy this
land and pay for it over period of
twenty to forty years, it will soon
pass into the hands of people of
wealth and we will have a system of
absentee landlordism and tenancy
Our system of federal farm land banks
developing constantly under fire, is a
step in the right direction. We need
similar banks in our various states
operating under state charter.
But we are in need Of credit
whereby the young farmer may con-
struct buildings, and equip his farm.
The present short term loans subject
to constant renewal are not satisfac-
tory. The chattel mortgage system
is equally unsuited, and the present
system of five and ten year mortgages
falling due all at one time are also I'M
satisfactory. Here we need again Il
system 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 secure
from the borrower annually or more
often partial payments to apply on
the same as sinking fund with Op-
portunity to pay more or less from
year to year according to the condi-
lions Of crop yield, price, etc. These
institutions might be under federal or
state charter. The federal farm land
banks or similar institutions under
state charter could perform this SER
vice
:"Thus far 1 have only referred to
credit based upon farm lands, build
ings, and productive equipment such
as livestock, implements and machin-
cry Under such a system lower in
terest rates would be secured if
buildings and equipment were regu-
larly insured, thus distributing the risk
more widely.
"The 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 one year
or even three, five or ten years in the
case of grain and cotton farmers,
growers of livestock and orchards, for
the farmer who plants an orchard of
tree fruits must wait from four to eight
NEW SEED CORN WILL
BE SENT At Low COST
A few samples Of a hybrid corn
coming from crosses made between
small Russian Flint corn and North
Dakota Golden Dent and Minnesota
No. Is types, are available at the de-