The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1927-07-29
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EEEuEEzS RE@SSIA
By CHARLES E. TAYLOR
THE NORTHWESTERN FINANCE
CORPORATION

About the biggest thing that has happened in
the Northwest for sometime, is the formation at
st. Paul a fortnight ago of The Northwestern Fin
ance Corporation, to sell and finance farm lands.
At last big business has entered the real estate
game. No more the small man will sell farms in
each local community, but a gigantic corporation
will do this instead. A man desiring farm will
only have to let his wants be known, and this cor
poration will supply them. Thus in another field
the small man passes.
Of course the big corporation will be more eff
ficient-its scope will be broader and its service
more adequate.
Just what the function of this great corporation
will be is not yet clear but it is likely that it will
operate along the lines of the automobile finance
corporations. 1t will probably sell farms to farm
ers with sufficient resources to make small pay
ment down, with future payments along the line
of the amortization plans of the Federal Land
Bank which is proving so successful-either cash
or crop payments a long period of years
with small rate of interest.
In this way it is hoped to resettle the areas
made vacant by the foreclosures following the
post war agricultural debacle
Thousands of farms are in the hands of indi-
viduals and farm mortgage companies, and local
banks The owners cannot farm them personally
or rent them satisfactorily, so are losing money
by possession. Owing to the agricultural depres-
sion they cannot sell the old basis, because no
farmer has the money to buy and there is no
longer a ready market for farm mortgages due
to the same facts. Therefore new method must
be devised to handle farm lands
1t is we'll known that rented farms deteriorate
and depreciate in value rapidly. To keep the
farm up, keep it producing, it is best to get it
into the hands Of xubo r.
own it. Such man will work harder and long
er, and keep the fences up and the pump handle
in repair.
The land will probably be decided to the Corpor-
alton in exchange for bonds of the corporation
based on the land: the banks and farm mortgage
company and capitalists will probably buy the
STOCK The bonds guaranteed by the corporation
will no doubt find ready market
The land will probably be turned in for the face
OF the first mortgage claim against it. and will
be sold by the corporation for about its actual
value-this will in most cases afford a generous
profit to the stockholders The bonds will be much
more negotiable than farm mortgages no doubt
and will be in demand for that reason
Just how far this corporation will go in financ-
ing the purchase of machinery and equipment for
purchaser is not disclosed but it is likely that
it will engage in this activity also-thus cut
ting out the profits of the small machine agent
and the small banker
The entry of large capital in this field is indica-
tive that these capitalists will want to see the
farmer prosper at least sufficiently to paw the
taxes and keep up the interest and payments. This
may have some political reaction in favor of the
farmer in time-it may we say.
just how view the new capitalistic venture
IS illustrated in the following editorial taken from
last weeks Great Falls Town Topics: