The Bingham County news. [volume] (Blackfoot, Idaho) 1918-1930, 1923-12-28
FARMERS PAYING
EXCESSIVE RATES.
Spend Millions NeedlessIy for In.
terest on Store Credit, Says
Department of Agriculture.
BANK RATES THE LOWEST
Department Urges Thrift. Industry
and Reliability on Farmers 70
Win Credit Standlno-Bank.
ere Asked to Help.

The cost to farmers Of credit from
stores is more than Is per cent when
calculated on the basis Of a yearly In
terest rate, while banks charge little
more than 8 per cent, says the ofncia
report of the Department OF Agricuk
ture on its recent survey OF farm
credit In North Carolina
Farmers would profit greatly n
they could place themselves in posi-
ton to borrow from banks and payl
their bills with cash." the report conf
tinues, Merchants would Be bsns-l
Ated, since they could then give their
attention strictly 70 merchandising
and avoid the risk OF loss which they
now assume. Bankers would also PROF.
It, due to the resulting improvement
in farmers financial condition and the
increased business which these farm
srs would give the banks"
A Matter OF Habit
Discussing the question as to why
farmers rely on store instead OF bank
credit, the report says that many DO
so out of habit and do not realize how
high the cost of the store credit Is.
There are others, however. who
cannot obtain credit from banks" Il
goes on. This is often due to the
fact that no contact has been sstab-
lished and the farmers credit ratingl
has not been determined Banks pro
fer character and general businessl
ability over any tangible security inl
making loans. A REPUTATION FOR
THRIFT. INDUSTRY AND RELIA.
BILITY is THE BEST POSSIBLDI
ASSET FOR A MAN WANTING
CREDIT.
"The first step in giving farmersl
better credit is to build up better con
facts. This will require co-operation
Of county agents. farm organizations
and the bankers themselves. But the
banks cannot do II all Effort toward
a better acquaintance IL necessary oAI
the part Of farmers. Frankness re-
garding their business affairs is eS
sential."
The large part credit cost plays in
agricultural conditions is pointed out
by the departments report, which says
North Carolina farmers contract debts
amounting TO more than 200.000.00o
and therefore a difference Of
only l per cent In the average inter,
.st rate would affect the net mcconnell
rom agriculture there approximately
100000 each year. More than half
he farmers in the areas investigated
a1ind hn pIi al
he total merchant credit was nearly
hree times the short-term bank
redit
High Interest Rates
THE average interest rate CHARGED
DR. merchant credit was 1928 per cent"
ne survey reveals "Credt from To-
al stores was the most expensive,
osting an average of 266 per cent.
landlords came next In order, with q
ate OF Els per cent. Factories and
leir agents are much lower. with
ties OF 14.2 and 10 per cent respec-
vely.
Fertilizer and living expenses' areI
e chief purposes for which merchant
edit is extended. Stores apparently
andle more of such business thanl
] other agencies combined, whilej
INKS carry less than one-sixth Of the
tai That the farmers fail to obtain
'eded short-term credit direct from
INKS constitutes a handicap to agri-
lture In North Carolina. since the
tie on such loans II materially low.
than on shortterm loans from al
her sources"