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Show BUSINESS PITFALLS in FARM DISTRICTS Banker Point Out Hazards of Unsound Practices Help Farmers to Avoid Them WAY3 In which bankens may discourage dis-courage unsound farm prac-I prac-I tlces are described by President F. j D. Farrell ot the Kansas State Agricultural College In the American Ameri-can Bankers Association Journal. He says: I "In Kansas In connection wltb the Importation of dairy cattle, a I large shipment of very Inferior j animals came Into a county to be sold at auction to local farmers. The county agricultural agent In I formed the bankers that the cattle would be a detriment to the com-I com-I munlty. The bankers refused to finance the purchase of the cattle and the sale was abandoned. The i cattle were shipped to another county. The county agent and the bankers there did as was done la the first Instance and the second county escaped. An Unnecded Induatry "A year ago creamery promoter.'-began promoter.'-began trying to capitalize the Kansas Kan-sas farmers' desire to improve his markets by Inducing cemmunltlei ot farmers to purchase creamery plants before production and local conditions justified them. Informed of this by the State Agricultural College, the bankers association sent warnings to every bank In the state, leading many to refuse to support the creamery promoters until tho college approved the plant for the community concerned. This saved many communities loss from the premature establishment of plants. "A third way bankers (an discourage dis-courage unr.sund practices Is to refuse to finance farmers who wltili to pyramid their enterprises, a temptation difficult to resist. Thlr, is illustrated among farmers who buy cattle for feeding purpesss. A farmer feeds two or three cars o' cattle ono year and makes a good profit. This Induces him to buy twice or three times as many the second year, still r.iorj the thlru and so on until he finally lose? itiore by having too many cattle on feed In a year of bad prices than ho made in several previous yean with smaller numbers and better prlcoa. When bankers discourage bad practices their action is s positive benefit to the famcrs concerned." |