Show THE B BANKS A INKS PART IN THE FARM PROBLEM by ii H LANE YOUNG member american bankers assoil association agricultural Commis commission slon NEI of the most discussed and least 0 ONE understood questions regarding the farmers problems Is tho the part the bank banic has played or la Is to play la ia financing the farmer the batis basis of operation cooperation co bot between the ibo two however la Is a very i simple ono one both sides are subject to cratl criticism for tho the condition 7 that exists today the major share of tho blame rests on those H lane young banks that have failed through disregarding di arding fundamental principles la in loaning other peoples money that have encouraged the farmer to expect bank loans with out first putting his business on the earning basis which would justify a 0 bank to lend him money ono ot of tho the underlying reasons means tor et the e failure of so many country banks his has been the existence of too many banks with tho the limited business ot of tho the comm divided among too many banks it was impossible tor for them to make enough money to justify the employment of officers with the proper ability to manage the bank scramble tor for business was so liard that good judgment and fo foresight resi glit were forgotten in granting loans loana tho the resultant failure of oc the weaker institutions in the future banks are not going soloan to loan the money of their depositors without the kind of 0 security that can be immediately realized upon in case the loan la Is not paid or unless the applicant presents i a sound and success lucress ful record ot of business operation whether that business be manufacturing merchandising noising nd ising oi or farming farming banking interdependent this iii la a perfectly obvious attitude because because country banking cannot be successfully and profitably carried on unless faiming arming Is successfully and profitably ably operated the two businesses STO ato dependent upon each other there la Is no longer any question that the time has baa arrived tor for these inter dependent businesses to teach reach a corn com mon ground of understanding of the requirements that both must meet tor for their mutual welfare there la 13 no doubt but what the future prosperity of the farmer and the basis oc at cooperation between banker und and farmer la Is the intelligent diversification fi ot crops it la Is necessary however to lave have the right conception ot of diversification the mistake that many farmers have made in attempting to diversi diversify fr has been to invest too much money time and land in n new and untried crop sometimes a hazardous crop or one tor for which no immediate market has been developed resulting 11 in i a loss ot of the initial effort and discourage mont ment ot of future efforts on a more conservative serva tive b basis disregarding the primary and essential principle of farming namely increasing ear earnings lings by decreasing the cost coat ot of production through the practice of building up soil by crop rotation and intensive cultivation is responsible spon tor for vs in large share ot of the farmers trouble today |