Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1934-03-22

ABOUT i've hundred Inhabitants. The
entire valley wal stagnant and drab
until a large hydroelectric company
erected Its steel pyramids across the
valley. T%hereupon an enterprising
farmer had a deep well drilled IN his
ranch and developed a surprising flow
of water which rose almost to the sur
face; with q cheap centrifugal pump
driven by a ten-horse power electric
motor he was enabled to irrigate his
quarter-section farm, seemingly with
out appreciable effect on the water
level.
Almost at once Forlorn Valley was
the victim Of q boom. Gradually the
brown lands became checkerboarded
with vivid green patches. as the plant
Ing Of alfalfa developed. Orchards
were planted the raising of hogs and
cattle for beef and dairying increased:
an adyenturer from nowhere APP
peared and laid out a subdivision OF
the thriving city, Of Valley Center.
A former Middle West bank clerk,
Silas Babson, who had inherited an
Iowa farm from his parents and sold
it for seventy-fve thousand dollars,
came to Valley Center and started q
state bank. The Bank Of Valley Gen.
ter was successful from the start.
Babson was a son of the soil thrift
ty, shrewd, rapacious, competent.
From banking he reached out and in
terested himself In such local enter
prises as creameries, a lumber yard,
the largest local garage with the
agency for a popular cheap automobile
and pumps; he sold insurance Of all
kinds.
Only once had Babson lost his per-
spective on values and that was dur
Ing the World war, and for this it
would seem he was not to be blamed,
since all his fellow countrymen lost
theirs simultaneously. The rapid adj
vance In the price of farm commodi-
ties had brought the usual boom OF
prosperity to Forlorn Valley. The
bank, sharing In the general and I'M
usual prosperity. presently had a glut
of money on deposit and, since banks
exist by loaning the funds deposited
with them, Babson, with 80 much
money on hand, and faced with the
problem of making that money pay
dividends, let down his guard. SO to
speak, and loaned money on farm
mortgages.
The postwar defation period ar
rived and the values of farms and
farm products dropped almost over
night below the pre-war marks. AS
he contemplated the banks unsecured
notes and frozen assets in the shape
OF mortgages on farms for so per cent
OF their present value and that value an
exceedingly doubtful one, Babson had
a very clear vision OF hard times In
the immediate oting.
II he foreclosed his mortgages he
would have the farms on his hands
likewise their taxes and the loss of
interest.
For the succeeding four years Mr..
Babson's commercial progress was
tinctured with caution. Then the
pendulum commenced to swing the
other way very slowly, and one day
q brilliant thought leaped into his har-
ried brain.
He decided to transfer his financial
burdens to the capable hands Of the
rightful 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 raisera he would induce
his debtors to borrow on mortgage, at
III per cent, sufficient funds to pay
of the existing mortgages at 8 per
cent held by the Bank OF Valley Cen
ter. In order to sweeten the deal Mr..
Babson ever considered waving the
accumulated and unpaid interest for a
couple of years. All he wanted back
was the principal Of his foolish loans,
for with that In his vaults he knew
bis bank would be quite safe.
Promptly he bulldozed a farmer
into making application for such a
loan, and with commendable celebrity
a government farm appraiser came
up from San Francisco to inspect the