Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-18

trict developed into dry farming sec
ton, and later into mixed" farming.
Gold Run was the county seat, and
In the heart of Foriorn Valley Q settle
ment known as Valley Center had
gradually developed into . village Of
about 500 inhabitants. The entire val
ley was stagnant and drAb until large
hydroelectric company erected sts steel
pyrsrnids acroSs the valley. IoereUpDn
an ellferprising farmer had deep wei
drilled on his ranch and deVHlopec
eururisinv Tow q water which rose al
most 70 the surface; vita cnezp ceri-
srffuRas uurrp driven by q. a0-h1rse-
power electric motor, he xAs enabieu
70 trriEs.e his cuHrFEr-secaon 1E1m,
seemingly without zrprrcaAEafe sHect IN
the water level
The victim Of o bon Land wAloes
skyrockeEed: we1l-bnT1rg became tne
leading industry Of the section csTecIa-
afIv the bEoEn lands became checker
boarded with VIVID green patches, g
fae rIantfng Of alfalfa oeyeA0pe0.
Orchards were planted. the raising o.
hos and cattle for beef and carrying
increased: an adveneurer IRON nOWneIS
appeared and laid out suDoiylsaon o.
the thriving city Of Yalley Ce sslIL T..
former Middle West bank clerk,
sIlas Babson, who had inherited an
T0wa. farm from his pesents and solo
IL for SIS 900, came TO Valley Center
and started PtEte bank. The Bank
of Valley CeS-~k vas Euccessfm from
Babson was a son Of the soil: thrifty.
ehrewd, rapacious. competent. Also ne
had the acquisitive instinct, ana MS
busy mind was never free from thoughts
Of noney-making. From banking ne
4eA rsg@ vaA htrlENll
such local enterprises as cTeameries,
lumber yard, the largest local garage
with the agency for popular cheap
automobile and pumps; he sold insur-
ance OF all kinds.
Only once had Babson lost his per-
spectiye on values, and that was during
the Great War. and for this II would
seem he was not 10 be blamed, since
all his fellow countrymen lost theirs
simultaneously. The rapid ADVANCE IN
the price Of farm commodities nao
brought the usual boom Of prosperity
TO Forlorn Valley. The bank, sharing
in the general and unusual prosperity,
presently had a glut Of money on de-
post and, since banks exist BY loaning
the funds deposited with them. Bah
son, with so much money on hand, ana
faced with the problem Of making that
money pay dividends. let down MS
guard, so TO speak, and loaned money
on farm mortgages.
The postwar defiation period arrived,
and the values Of farms and farm
products dropped almost overnight be"
low the pre-war marks. As ne conten1..
plated the banks unsecured notes ana
frozen assets In the shape Of mortgages
on farms for 80 per cent of their pres
ent value and that value an exceed
ingly doubtful one, Babson had . very
clear vision Of hard times In the inln1e-
date ofing. If he forecloee0 his nort-
cages he would have the farms on his
hands-likewise their taxes and the loss
Of interest.
For the succeeding four years Mr..
BahSons commercial progress was tine
tIIred with caution. Then the pendulum
commenced to swing the other way very
slowly, and one day brilliant thought
leaped into his harried brain.
He decided 70 transfer his financial
burdens to the capable hands Of the
rightftu receiver Of all gold-bricks, TO
wit-the Government From the Joint
land-stock banks established by the
Government to aid the stricken farm
ers and stock-raisers he would induce
his debtors TO borrow on mortgage, at
5iz per cent, sufficient funds to pay
on the existing mortgages, at 8 per cent,
held by the Bank Of Valley Center. In
order to sweeten the deal hI-. Babson
even considered waving the accumu-
lated and unpaid interest for a couple
Of years All he wanted back Vas the
principal Of his foolish loaEs, for with
that In his vaults he knew his bank
would be quite safe.
Promptly he bulldozed a farmer into
making application for such loan, and
with commendable CELEBRITY . Govern
ment farm appraiser came UP from San
Francisco 10 inspect the proffered col
lateral II required somsthing less than
30 seconds for this individual TO make
his appraisal and decision.
The Government. he said, viii not
consider ioanfng money on California
farms which are listed as dry-farming
lands"
But these lands are irrigated" Mr..
Eabson reminded him.
Yes. so I observe. but from deep
wells. But as more and more wells are
bored and the farming In this valley
tends more and more toward intensive
cropping. thus requiring more and more
water for irrigation, the water levels
VIII reeede and the cost Of pumping the
water to the surface viii increase pro-
portiouately with the lift until point
WIN be reached where the water win be
tanetnred with red Ink. Hence, such
land& Is these are listed Is dxy.farmtns