OCR Text |
Show urn ROUND-UP ID HOUSEKEEPERS' CONFERENCE Logan, Jan. 25. Frank B. Stephens of Salt Lake, one of the state's best known experts on rural credit problems, prob-lems, which he has studied In Europe as well as in America, was the chief speaker at the second dav's session of the farmers' roundup and housekeepers' house-keepers' conference today. Carl R. Marcussen, prominent member mem-ber of the Utah Bankers' association and a well-known banker at Price, was also on the program this evening. even-ing. Mr. Marcussen spoke on "The Relations of the Banker and the Farmer." Far-mer." Both the address of Attorney Stephens Ste-phens on the need of rural credit systems sys-tems and that of Mr. Marcussen were heard by a large audience In the college col-lege chapel tonight. Musical numbers num-bers were furnished by the college musical department. Address of Mr. Stephens. Mr. Stephens held the closest attention at-tention of his audience for over an hour and his principal points were as follows: The amortization system of farm loans consists in adding to the least obtainable rate of interest a small payment upon the principal semiannually, semi-annually, also a small payment for expense ex-pense of operation and a surplus fund. The loan is thereby entirely paid off after a term ranging from thirty to ninety years. By adding to the agreed rate of Interest $1.50 for $100 annually for amortization and 50 cents per $1000 for expense of operation, opera-tion, the mortgage will be entirely paid at the end of thirty years. In Germany, with smaller amortization, amortiza-tion, the period ranges from forty to sixty years; in Denmark, where the government borrows money at 3 per cent and loans It to the farmer at 3 per cent, the payments upon the principal are so small that it takes over ninety years to pay off the loan. The Danish government has. however, made a special feature of encouraging purchase of small farms, and if a farmer has one-tenth of the price of a piece of land and can show by rigid examination his .probable ability to make good, tho government loans him the other nine-tenths. I Present Difficulty. j There Is no question that the amortization amor-tization plan of loans should bo adopt- J ed in this country. The rates of In- terest on farm loans in the west and south are extremely high. There is 1 always present the specter of the mortgage, which matures in three to I five years, with the attendant ex- I pense and trouble of getting a renewal re-newal of an extension, usually involving in-volving a 2 per cent commission, an attorney's fee, an abstract fee, recording record-ing of new papers and a large waste of time on the part of the farmer in attending to the renewal. There are, however, some reasons for high rates of interest and some obstacles in tho way of long-time loans on the plan mentioned which must be removed before the system can be put into successful suc-cessful operation. Rates of interest are determined by certain fixed financial principles, chief among which is the question of absolute security and ability to cash the security when desired. The government gov-ernment of the United States borrows money at 2 per cent, for the reason that the holder of a 2 per cent government gov-ernment bond knows that he can get his money an' minute. Tho Pennsylvania Pennsyl-vania Railroad comnanv borrows money at -i,per cent; many municipal corporations do likewise. The farming operations in the corn belt aro standardized grain, hogs, dairies land values are stable The element of uncertainty is reduced to a minimum and farmers generally conduct their operations along definite defin-ite business lines. Before the Utah and Idaho farmer can obtain low interest in-terest rates and long-time loans he must measure up to a higher standard of efficiency and prosperity. He must become a business man, with a well-defined, well-defined, carefully-worked-out business policy and management Business Required. When the German farmer applies to a local association for a long-time loan the first thing the loan committee commit-tee does it to examine his books for six years last past in order to determine deter-mine the amount of his net average annual income. Ho must have a balanced bal-anced equipment of cows, pigs and horses. When the books of the American Am-erican farmer for six years last part show his business operations, he will have begun to measure up to the standard, which will entitle him to lower rates of Interest. What can our Utah farmer d0 to put himself In the favored borrowing class? Of course, he must make his farm plant efficient so far as production produc-tion and methods are concerned, but this alone will not make him prosperous. prosper-ous. Prosperity depends now as much or more upon business efficiency effici-ency of the farm as upon productive efficiency", and we can never have business efficiency upon the land without organization for mutual benefit. bene-fit. The farmer is a manufacturer, turning the energy of the soil into a manufactured product in the shape of beef, butter, grain or other produce for the purpose of sale. All other lines of business are organized. parmer is txpioitea. Not only has wealth organized for the purpose of exacting the highest possible profit from those with whom it deals, .but labor has organized for the purpose of exacting the highest wage possible, profit from those with whom it deals, but labor has organized organ-ized for the purpose of exacting the highest wage possible. The farmer and others that are unorganized are between the upper and the nether millstone. The force of organized capital from above and tho effect of organized labor beneath takes from them too large a proportion of the price the consumer pays, and,- until the farmer takes charge of his own business and organizes to counter the organization of those who sell him what ho buys and buy from him what he sells, he will not attain the prosperity pros-perity wJiich the money lender demands de-mands In order that he may be sure of his principal and interest The farmer has so long been exploited ex-ploited by organized wealth that those who handle his products and those who live in cities generallv have lost respect for him. You have not much respect for a man who will permit you to put your hand in his pocket and take what you please. Finally, we who own land and try to make a living off of it must have a higher conception of the 'worth dignity and opportunities of our nn fession. Those who produce the wealth of the country should be thP true aristocrats, rather than those who haul it to market and traffic in it. Rightly looked upon, there is no business which demands so much good judgment, intelligence and ahll Ity and which is entitled to as much respect as that of farming. |